Please show me how to calculate the following financial ratios using Best Buy's income statement and balance sheets.
ROE (Return on Equity)
I am using the company/s most recent annual data, ending March 3, 2012 which can be accessed on pages 11-12 at: http://phx.corporate-ir.net/phoenix.zhtml?c=83192&p=irol-newsArticle&ID=1678071&highlight=
I have also attached the PDF of this info.
The financial ratios are calculated as follows:
Profit margin = Net income/Sales
Asset turnover = Sales/Average assets
Current ratio = Current assets/Current liabilities
Debt to equity ratio = Total debt/total equity
Price to earnings multiple = Stock price/Earnings per share
Return on equity = Net income/Average equity
Calculating the ratios using Best Buy's ...
This solution calculates financial ratios based on Best Buy's financial statements.
Liquidity ratio current ratio and the acid test ratio
Calculate the liquidity ratio (current ratio and the acid test ratio) of the three organizations and analyze your results regarding ABC, kindred and northern Illinois medical center. As ABC only has one year of data, only use one year of data for the other two companies as well. Show calculations.View Full Posting Details