Explore BrainMass

Financial Ratios

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Please show me how to calculate the following financial ratios using Best Buy's income statement and balance sheets.

Profit Margin
Asset turnover
Current Ratio
Debt-Equity Ratio
PE Multiple
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.

© BrainMass Inc. brainmass.com October 25, 2018, 6:47 am ad1c9bdddf


Solution Preview

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 ...

Solution Summary

This solution calculates financial ratios based on Best Buy's financial statements.

See Also This Related BrainMass Solution

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