financial ratio analysis template

Input[Company Name]Financial Ratio AnalysisInput Worksheet[Date]Gray cells will be calculated for you. You do not need to enter anything into them.Line ItemBeginning of YearInventory$12,500Total assets$120,000Owners' equity$29,000Number of common shares25,000Line ItemQ1Q2Q3Q4AnnualCurrent assets45,00046,00046,50043,000$43,000Fixed assets80,00080,00080,00080,000$80,000Total assets125,000126,000126,500123,000$123,000Average total assets122,500123,000123,250121,500$121,500Cash and cash equivalents15,00018,00016,50014,350$14,350Inventory15,00018,00016,50014,350$14,350Average inventory13,75015,25014,50013,425$13,425Current liabilities23,00025,00022,50025,600$25,600Total liabilities125,000125,000125,000125,000$125,000Owners' equity28,00030,90032,00028,000$28,000Number of common shares25,00025,00025,00025,00025,000Average number of common shares25,00025,00025,00025,00025,000Average owners' equity28,50029,95030,50028,500$28,500Market price per share10.0010.0010.0010.00$10.00Cash flow175,000186,000169,000155,000$685,000Cash flow per share7.007.446.766.20$27.40Dividends paid5,0005,0005,0005,000$20,000Total sales145,000156,000135,600125,000$561,600Operating expenses68,00068,00068,00068,000$272,000Operating income77,00088,00067,60057,000$289,600Advertising expense18,00018,00018,00018,000$72,000Marketing expense11,00011,00011,00011,000$44,000Earnings before interest and taxes132,000127,000114,50098,000$471,500Interest expense24,00024,00024,00024,000$96,000Net income89,00087,00095,00065,000$336,000Total loan25,00024,00023,00022,000$22,000Value of collateral or property65,00065,00065,00065,000$65,000

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Liquidity[Company Name]Ratio AnalysisLiquidity RatiosQ1Q2Q2Q3Q4AnnualDefinition:Current Ratio=Current Assets1.96=$45,0001.84=$46,0002.07=$46,5001.68=$43,0001.68=$43,000Current Liabilities$23,000$25,000$22,500$25,600$25,600Industry Average2.002.002.002.002.00Variance(0.04)(0.16)0.07(0.32)(0.32)Quarterly Growth/Decline(0.12)0.23(0.39)Quick Ratio=Current Assets Inventory1.30=$45,000-$15,0001.12=$46,000-$18,0001.33=$46,500-$16,5001.12=$43,000-$14,3501.12=$43,000-$14,350Current Liabilities$23,000$25,000$22,500$25,600$25,600Industry Average7.007.007.307.202.00Variance(5.70)(5.88)(5.97)(6.08)(0.88)Quarterly Growth/Decline(0.18)0.21(0.21)Net Working Capital Ratio=Current Assets Current Liabilities0.18=$45,000-$23,0000.17=$46,000-$25,0000.19=$46,500-$22,5000.14=$43,000-$25,6000.14=$43,000-$25,600Total Assets$125,000$126,000$126,500$123,000$123,000Industry Average2.002.002.002.002.00Variance(1.82)(1.83)(1.81)(1.86)(1.86)Quarterly Growth/Decline(0.01)0.02(0.05)Current Liabilities to Inventory Ratio=Current Liabilities1.53=$23,0001.39=$25,0001.36=$22,5001.78=$25,6001.78=$25,600Inventory$15,000$18,000$16,500$14,350$14,350Industry Average2.002.002.002.002.00Variance(0.47)(0.61)(0.64)(0.22)(0.22)Quarterly Growth/Decline(0.14)(0.03)0.42Cash Ratio=Cash and Cash Equivalents0.65=$15,0000.72=$18,0000.73=$16,5000.56=$14,3500.56=$14,350Current Liabilities$23,000$25,000$22,500$25,600$25,600Industry Average2.002.002.002.002.00Variance(1.35)(1.28)(1.27)(1.44)(1.44)Quarterly Growth/Decline0.070.01(0.17)Operating Ratio=Operating Expenses0.88=$68,0000.77=$68,0001.01=$68,0001.19=$68,0000.94=$272,000Operating Income$77,000$88,000$67,600$57,000$289,600Industry Average2.002.002.002.002.00Variance(1.12)(1.23)(0.99)(0.81)(1.06)Quarterly Growth/Decline(0.11)0.230.19The following calculations can be used for any expense line item or grouping of expense line items:Advertising Expense to Sales Ratio=Advertising Expense0.12=$18,0000.12=$18,0000.13=$18,0000.14=$18,0000.13=$72,000Total Sales$145,000$156,000$135,600$125,000$561,600Industry Average2.002.002.002.002.00Variance(1.88)(1.88)(1.87)(1.86)(1.87)Quarterly Growth/Decline(0.01)0.020.01Marketing Expense=Marketing Expense0.08=$11,0000.07=$11,0000.08=$11,0000.09=$11,0000.08=$44,000to Sales RatioTotal Sales$145,000$156,000$135,600$125,000$561,600Industry Average2.002.002.002.002.00Variance(1.92)(1.93)(1.92)(1.91)(1.92)Quarterly Growth/Decline(0.01)0.010.01


Assets[Company Name]Ratio AnalysisAsset RatiosQ1Q2Q3Q4AnnualDefinition:Inventory Turnover Ratio=Total Sales10.55=$145,00010.23=$156,0009.35=$135,6009.31=$125,00041.83=$561,600Average Inventory$13,750$15,250$14,500$13,425$13,425Industry Average6.006.006.006.002.00Variance4.554.233.353.3139.83Quarter Growth/Decline(0.32)(0.88)(0.04)Fixed Assets Turnover Ratio=Total Sales1.81=$145,0001.95=$156,0001.70=$135,6001.56=$125,0007.02=$561,600Fixed Assets$80,000$80,000$80,000$80,000$80,000Industry Average2.002.002.002.002.00Variance(0.19)(0.05)(0.31)(0.44)5.02Quarter Growth/Decline0.14(0.26)(0.13)Total Assets Ratio=Total Sales1.16=$145,0001.24=$156,0001.07=$135,6001.02=$125,0004.57=$561,600Total Assets$125,000$126,000$126,500$123,000$123,000Industry Average2.002.002.002.002.00Variance(0.84)(0.76)(0.93)(0.98)2.57Quarter Growth/Decline0.08(0.17)(0.06)Asset to Equity Ratio=Total Assets4.46=$125,0004.08=$126,0003.95=$126,5004.39=$123,0004.39=$123,000Owners' Equity$28,000$30,900$32,000$28,000$28,000Industry Average2.002.002.002.002.00Variance2.462.081.952.392.39Quarter Growth/Decline(0.39)(0.12)0.44


Profitability[Company Name]Ratio AnalysisProfitability RatiosQ1Q2Q3Q4AnnualDefinition:Return on Assets Ratio=Net Income0.73=$89,0000.71=$87,0000.77=$95,0000.53=$65,0002.77=$336,000Average Total Assets$122,500$123,000$123,250$121,500$121,500Industry Average2.002.002.002.002.00Variance(1.27)(1.29)(1.23)(1.47)0.77Quarter Growth/Decline(0.02)0.06(0.24)Return on Equity Ratio=Net Income3.12=$89,0002.90=$87,0003.11=$95,0002.28=$65,00011.79=$336,000Average Owners' Equity$28,500$29,950$30,500$28,500$28,500Industry Average2.002.002.002.002.00Variance1.120.901.110.289.79Quarter Growth/Decline(0.22)0.21(0.83)Profit Margin Ratio=Net Income0.61=$89,0000.56=$87,0000.70=$95,0000.52=$65,0000.60=$336,000Total Sales$145,000$156,000$135,600$125,000$561,600Industry Average2.002.002.002.002.00Variance(1.39)(1.44)(1.30)(1.48)(1.40)Quarter Growth/Decline(0.06)0.14(0.18)Basic Earnings Power Ratio=Earnings Before Interest and Taxes1.06=$132,0001.01=$127,0000.91=$114,5000.80=$98,0003.83=$471,500Total Assets$125,000$126,000$126,500$123,000$123,000Industry Average2.002.002.002.002.00Variance(0.94)(0.99)(1.09)(1.20)1.83Quarter Growth/Decline(0.05)(0.10)(0.11)Earnings per Share Ratio=Net Income3.56=$89,0003.48=$87,0003.80=$95,0002.60=$65,00013.44=$336,000Average Number of Common Shares$25,000$25,000$25,000$25,000$25,000Industry Average2.002.002.002.002.00Variance1.561.481.800.6011.44Quarter Growth/Decline(0.08)0.32(1.20)


Debt[Company Name]Ratio AnalysisDebt RatiosQ1Q2Q3Q4AnnualDefinition:Total Debt Ratio=Total Liabilities1.00=$125,0000.99=$125,0000.99=$125,0001.02=$125,0001.02=$125,000Total Assets$125,000$126,000$126,500$123,000$123,000Industry Average2.002.002.002.002.00Variance(1.00)(1.01)(1.01)(0.98)(0.98)Quarter Growth/Decline(0.01)(0.00)0.03Interest Coverage Ratio=Earnings Before Interest and Taxes5.50=$132,0005.29=$127,0004.77=$114,5004.08=$98,0004.91=$471,500Interest Expense$24,000$24,000$24,000$24,000$96,000Industry Average2.002.002.002.002.00Variance3.503.292.772.082.91Quarter Growth/Decline(0.21)(0.52)(0.69)Debt/Equity Ratio=Total Liabilities4.46=$125,0004.05=$125,0003.91=$125,0004.46=$125,0004.46=$125,000Owners' Equity$28,000$30,900$32,000$28,000$28,000Industry Average2.002.002.002.002.00Variance2.462.051.912.462.46Quarter Growth/Decline(0.42)(0.14)0.56Loan to Value Ratio=Total Loan0.38=$25,0000.37=$24,0000.35=$23,0000.34=$22,0000.34=$22,000Value of Collateral or Property$65,000$65,000$65,000$65,000$65,000Industry Average2.002.002.002.002.00Variance(1.62)(1.63)(1.65)(1.66)(1.66)Quarter Growth/Decline(0.02)(0.02)(0.02)


Market[Company Name]Ratio AnalysisMarket RatiosQ1Q2Q3Q4AnnualDefinition:Earnings per Share=Net Income$3.56=$89,000$3.48=$87,000$3.80=$95,000$2.60=$65,000$13.44=$336,000(EPS) RatioAverage Number of Common Shares25,00025,00025,00025,00025,000Industry Average2.002.002.002.002.00Variance1.561.481.800.6011.44Quarter Growth/Decline(0.08)0.32(1.20)Price to Earnings Ratio=Market Price per Share2.81=$10.002.87=$10.002.63=$10.003.85=$10.000.74=$10.00Earnings per Share$3.56$3.48$3.80$2.60$13.44Industry Average2.002.002.002.002.00Variance0.810.870.631.85(1.26)Quarter Growth/Decline0.06(0.24)1.21Price to Cash Flow Ratio=Market Price per Share1.43=$10.001.34=$10.001.48=$10.001.61=$10.000.36=$10.00Cash Flow per Share$7.00$7.44$6.76$6.20$27.40Industry Average2.002.002.002.002.00Variance(0.57)(0.66)(0.52)(0.39)(1.64)Quarter Growth/Decline(0.08)0.140.13Payout Ratio=Dividends Paid0.06=$5,0000.06=$5,0000.05=$5,0000.08=$5,0000.06=$20,000Net Income$89,000$87,000$95,000$65,000$336,000Industry Average2.002.002.002.002.00Variance(1.94)(1.94)(1.95)(1.92)(1.94)Quarter Growth/Decline0.00(0.00)0.02


financial ratio analysis template

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