James Confectioners Ratio Analysis

Liquidity Ratios

1.       Current Ratio = Current Assets Divided By Current Liabilities

2.       Quick Ratio = Quick Assets Divided By Current Liabilities

The Quick Ratio includes only the company's assets that can be converted to cash and excludes inventory.

Leverage Ratios

3.       Debt Ratio = Total Debt (or Liabilities) Divided By Total Assets

4.       Debt-to-Net Worth Ratio = Total Debt (or Liabilities) Divided by Tangible Net Worth

Tangible Net Worth is defined as capital + capital stock + earned surplus + retained earnings less any intangible assets (goodwill).

5.       Times Interest Earned Ratio = Earnings before interest and taxes (or EBIT) Divided By Total Interest Expense

Operating Ratios

6.       Average-Inventory-Turnover Ratio = Cost of Goods Sold Divided by Average Inventory

Average Inventory is the sum of the value of the firm's inventory at the beginning of the accounting period and its value at the end of the accounting period divided by 2

7.       Average Collection Period Ratio

Receivables Turnover Ratio = Credit Sales Divided By Accounts Receivable

Average-collection-period ratio = Days in accounting period Divided by Receivables turnover Ratio

8.       Average-Payables-Period-Ratio

Payables turnover ratio = Purchases Divided by Accounts Payable

Average-payable-period ratio = Days in the accounting period Divided by Payable turnover ratio

9.        Net-Sales-to-Total-Assets Ratio

Total assets turnover ratio = Net Sales Divided by Net Total Assets 

Profitability Ratios

10.    Net-Profit-on-Sales Ratio

Net-Profit-on-Sales Ratio = Net Profit Divided by Net Sales

11.   Net-Profit-to-Assets Ratio

Net-Profit-to-Assets Ratio = Net Profit Divided by Total Assets

12.    Net-Profit-to-Equity Ratio

Net-Profit-to-Equity Ratio = Net Profit Divided by Owners' Equity (or Net Worth) 

Attachment:- James Confectioners Case Study.pdf