Forecasted Ratio Analysis Example SIS

SCHOLARSHIP INFORMATION SERVICES
FORECASTED RATIO ANALYSIS
FOR YEAR ENDING AUGUST 31, 200X and 200Y


CURRENT RATIO : 200X 200Y
Current Assets
Current Liabilities
= $12,965
$5,085
$28,470
$11,256
= $2.55 $2.53
QUICK RATIO:
Current Assets - Inventory
Current Liabilities
= $10,373
$5,085
$24,906
$11,256
= $2.04 $2.21
DEBT TO EQUITY RATIO
Total Liabilities
Owners Equity
= $5,085
$19,880
$11,256
$25,213
= $0.26 $0.45
OWNERS EQUITY TO TOTAL ASSETS
Owners Equity
Total Assets
= $19,880
$24,965
$25,213
$36,470
= $0.80 $0.69
CREDITORS EQUITY TO TOTAL ASSETS
Total Liabilities
Total Assets
= $5,085
$24,965
$11,256
$36,470
= $0.20 $0.31
PROFIT MARGIN RATIO
Net income after Tax
Net Sales
= $5,480
$104,000
$17,333
$192,000
= $0.05 $0.09
RETURN ON TOTAL ASSETS
Net Income after Tax
Total Assets
= $5,480
$24,965
$17,333
$36,470
= $0.22 $0.48
RETURN ON OWNERS EQUITY
Net Income after Tax
Owners Equity
= $5,480
$19,880
$17,333
$25,213
= $0.28 $0.69
INVESTMENT TURNOVER RATIO
Net Sales
Total Assets
= $104,000
$24,965
$192,000
$36,470
= $4.17 $5.26