Question

Find the following financial ratios for Mathison, Inc. (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profit margin, return on assets, and return on equity as a percent.) 

Answer 1

	2018		2019
Short term solvency ratios
a. Current ratio Current asset/Current liabilities	4.23	times	4.15	times
b.Quick ratio Cash+Accounts receivable /Current liabilites	2.19	times	1.66	times
c.Cash ratio Cash/current liabilities	.89	times	.63	times
Asset utilization ratios
d)Total asset turnover Sales/Assets			2.11	times
e)Inventory turnover Cost of goods sold /inventory			8.9	times
f) Receivables turnover Sales/Accounts receivable			26.36	times
Long term solvency ratio
g)Total debt ratio Current liabilities+long term debt/Total assets	.29	times	.24	times
h)Debt equity ratio Current liabilities+long term /share holders equity	.67	times	.66	times
i)Equity multiplier Total assets/Total equity	2.34	times	2.75	times
j)Time interest ratio EBIT/Interest paid			13.09	times
k)Cash coverage ratio (EBIT+depreciation(non cash expense))/Interest paid			16.10	times
Profitability ratios
l) Profit margin Net income/sales			.11	times
m)Return on assets Net income/total assets			.23	times
n)Return on equity Net income/shareholders equity			.62	times