Compute the financial ratios for the past three years

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Question 1: Compute the Financial Ratios for the past 3 years based on the information provided. These ratios are Return on Equity, Profit Margin, Gross Margin, Asset Turnover, AR Turnover, Inventory Turnover, Debt to Equity, Current Ratio, Quick Ratio and Times Interest Earned. (If not able to determine, indicate NA). The ratio definitions are

Return on Equity = Net income/Avg. Total Equity

Profit Margin = Net income/Sales

Gross Margin = (Net sales - Cost of Sales)/Net Sales

Total Asset Turnover = Net sales/Avg. Total Assets

Accounts Receivable Turnover = Sales/Avg. Accounts Receivable

Inventory Turnover Ratio = Cost of Goods Sold/Avg. Inventory

Debt to Equity Ratio = Total Liabilities/Total Equity

Total Liabilities = Total Assets - Total Equity

Current Ratio = Current Assets/Current Liabilities

Quick Ratio = (Cash + Marketable Securities + Accounts Receivable)/Current Liabilities

Times Interest Earned = Income before Interest and Taxes/Interest Expense

Reference no: EM132592734

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