Compute the quick and current liquidity ratios, the DuPont ratio, profit margin, asset utilization, and financial leverage for IKEA.
Write a paper discussing how differences in the industries (manufacturing, service, and retail sales) and different measurement conventions (IASB and FASB) affect the financial presentation of IKEA.
Get the answer with attachment.
Quick Ratio=(Current Asset-Inventories)/(Current Liabilities)
Quick Ratio (2010)=(€ 22,608-€ 3,415)/€12,811=1.50
Current Ratio=(Current Asset)/(Current Liabilities)
Current Ratio=(€ 22,608)/€12,811=1.76
ROE=(Net profit margin)* (Asset Turnover) * (Equity multiplier)
Net Profit Margin:
Net Profit Margin=(Net Income)/Revenue
Net Profit Margin=(€ 2,688)/€23,539=0.1142=11.42%
Asset Turnover=Revenue/(Total Asset)
Equity Multiplier=(Total Assets)/(Shareholder^' s Equity)
Asset Utilization Ratios:
Asset utilization ratios include:
Days sales inventory
Days sales receivables
Net working capital ...
IKEA financial statement analysis for liquidity and DuPont ratios are examined.