Compute price-earnings and market-book ratios

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Reference no: EM132466518

Problem: Complete a financial analysis. You are asked to calculate the financial ratios for the years of 2014 and 2015 (You should have one of each for each year). Afterward, define and interpret the financial ratios for 2015. In other words, what does the ratio tell you, what is it for W&T, and what does it tell you about the company itself (interpret)? (Hint: Page 140-141 has the ratios and equations you need; they are also on the outline I give you.) You may put your analysis in the format below or create your own format as long as it is easy to read. 

Compute financial ratios. 

Financial ratios                          2014               2015

Current ratio

Acid-test ratio

Days in receivables

Days in inventory

Operating return on assets

Operating profit margin

Total asset turnover

Fixed asset turnover

Debt ratio

Times interest earned

Return on equity

Return on Assets

Compute price/earnings and market/book ratios (Some of these may be in chapter 3) 

                               2014                2015

Earnings per share

Dividends per share

Price/earnings ratio

Book value per share

Market/book ratio

Compute EVA with the following information: Operating return in assets 18%, Cost of capital 10.5%, return above cost of capital 7.5%, total assets $4,675.

Reference no: EM132466518

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