Compute the ratios for net profit margin ratio

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Reference no: EM132643843

Additional Information: Total Assets at 12/31 20x3 was $210. Total Liabilities at 12/31/20x3 were $66. Total stockholders' equity at 12/31 20x3 was $144.

Required:

Question (a) Using the formulas below, compute the following ratios for both 20x5 and 20x4:

Current ratio = Current Assets/Current Liabilities
Debt to Equity Ratio = Average Total Liabilities/Average Stockholders' Equity
Net Profit Margin Ratio = Net Income/Net Sales
Gross Profit Ratio = Gross Profit/Net Sales
Return on Equity = Net Income/Average Stockholders' Equity
Dividend Yield Ratio = Dividends per Share/Market Price per Share

Question (b) Enter the ratios calculated in parts (a) above in the table on the Excel Template and comment on the company's overall performance and trends from 20x4 to 20x5.

Reference no: EM132643843

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