Ratio Calculations and Examples

J&B INCORPORATED
FORECASTED RATIO CALCULATIONS
FOR YEARS ENDING APRIL ...

CURRENT RATIO: YEAR 1 YEAR 2 YEAR 3
Current Assets
Current Liabilities
= $67,894
$36,359
$67578
$39051
$98410
$43649
= 1.87 1.73 2.25
QUICK RATIO:
Current Assets -Current Liabilities
Current Liabilities
= $31,535
$36,359
$28,526
$39,051
$54,761
$43,649
= 0.87 0.73 1.25
DEBT RATIO:
Total Debt
Total Assets
= $36,359
$185,753
$39,051
$237,477
$43,649
$293,553
= 0.20 0.16 0.15
DEBT-TO-EQUITY RATIO:
Total Debt
Total Equity
= $ 36,359
$149,394
$ 39,051
$198,426
$ 43,649
$249,904
= 0.24 0.20 0.17
NET PROFIT MARGIN:
Net Income after tax
Sales
= $ 69,294
$582,401
$ 74,032
$673,775
$81,478
$78,441
= 0.12 0.11 0.10
RETURN ON EQUITY:
Net Income after tax
Total Equity
= $ 69,294
$149,394
$ 74,032
$198,426
$ 81,478
$249,904
= 0.46 0.37 0.33
NOTE: Complete analysis on above ratios is available upon request .