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.