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    Financial Ratios

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    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.

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    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.