Purchase Solution

Financial Ratios

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution

Solution Summary

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

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 ...

Purchase this Solution


Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.