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.© BrainMass Inc. brainmass.com October 10, 2019, 2:57 am ad1c9bdddf
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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.