Financial Ratio Analysis kraft
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Transcript of Financial Ratio Analysis kraft
Financial Ratio Analysis
1. Liquidity Ratio
Current Ratios= Current AssetsCurrent Liabilities
Quick Ratio=Current Assets−InventoryCurrent Liabilities
NetWorkingCapital ¿−sales=Current Assets−Current LiabilitiesSales
2. Profitability Ratio
Gross Profit Margin=Gross IncomeSales
Operating Profit Margin=Operating IncomeSales
Net Profit Margin= Net IncomeSales
3. Financial Leverage ratio
Components Percentage Financial Leverage Ratio
Total Debt ¿ Assets Ratio=Total LiabilityTotal Assets
Long−TermDebt ¿Assets=Long−TermDebtTotal Assets
Total Debt ¿Equity Ratio= Total Liability
Total Shareholde r ' s Equity
Coverage Financial Leverage Ratio
¿−Interest−Coverage Ratio=Earnings before interest∧taxesInterest
4. Shareholder’s Ratio
Dividend Payout Ratio=DividendsEarnings
Retention Ratio= Earnings−DividendsEarnings
Financial Ratio Analysis
Liquidity ratio 2006 2007 2008Current ratio 0.788122 0.628409 1.029156Quick ratio 0.453356 0.388681 0.691507Net working capital to sales -0.06672 -0.17571 0.00763
Profitability ratio 2006 2007 2008Gross profits margins 0.358191 0.334228 0.332101Operating profits margin 0.12491 0.109758 0.090448Net profits margin 0.092013 0.071678 0.068742
Financial Leverage RatioComponent percentage financial leverage ratio 2006 2007 2008
Total debt to assets ratio0.486181
0.598562
0.648055
Long term debt to asset0.127416
0.189755
0.294699
Total debt to equity ratio0.946209
1.491042
1.841351
Coverage financial leverage ratio 2006 2007 2008
Times-interest-coverage ratio0.122773
0.152295
0.324862
Shareholders ratio dividend 2006 2007 2008Dividend Payout Ratio 0.000314 0.000402 0.000386