4.8 DuPont equation: The Rangoon Timber Company has the following relationships:
What are Rangoon's profit margin and debt ratio?
4.18 Profitability ratios: Cisco Systems has total assets of $35.594 billion, total debt of $9.678 billion, and net sales of $22.045 billion. Their net profit margin for the year was 20 percent, while the operating profit margin was 30 percent. What are Cisco's net income, EBIT ROA, ROA, and ROE?
Quick ratio = (current assets - inventories) / current liabilities
0.89 = (11,845,175 - inventories) / 5,311,020
4726807.80 = 11,845,175 - inventories
4726807.80 - 11,845,175 = - inventories
-7118367.2 = - inventories.
Thus, inventories = $7,118,367.20
debt ratio = total debt / total assets
0.295 = total debt / 422,235,811
total debt = $124,559,564.25
D/E = D/A / ...
This solution provides calculations for liquidity ratios, leverage ratios, DuPont equation and profitability ratios.