Efficiency ratios-asset turnover ratios and leverage ratios

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Reference no: EM131052389

The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2014. Nederland Consumer Products Company Income Statement for the Fiscal Year Ended September 30, 2014 Net sales $59,440 Cost of products sold 25,757 Gross profit $33,683 Marketing, research, administrative exp. 16,000 Depreciation 820 Operating income (loss) $16,863 Interest expense 367 Earnings (loss) before income taxes $16,496 Income taxes 4,922 Net earnings (loss) $11,574 Nederland Consumer Products Company Balance Sheet as of September 30, 2014 Assets: Liabilities and Equity: Cash and marketable securities $6,800 Accounts payable $3,710 Investment securities 367 Accrued and other liabilities 6,260 Accounts receivable 3,746 Taxes payable 2,910 Inventory 5,200 Debt due within one year 6,710 Deferred income taxes 958 Prepaid expenses and other receivables 2,152 Total current assets $19,223 Total current liabilities $19,590 Property, plant, and equipment, at cost 29,304 Long-term debt 10,910 Less: Accumulated depreciation 8,397 Deferred income taxes 2,190 Net property, plant, and equipment $20,907 Other noncurrent liabilities 2,600 Net goodwill and other intangible assets 25,400 Total liabilities $35,290 Other noncurrent assets 2,140 Convertible Class A preferred stock 1,140 Common stock 2,600 Retained earnings 28,640 Total stockholders’ equity $32,380 Total assets $67,670 Total liabilities and equity $67,670 Compute the firm’s ratios for the following categories: (Round your answers to 2 decimal places, e.g. 12.55. Use 365 days for calculation.) a. Efficiency ratios. b. Asset turnover ratios. c. Leverage ratios. d. Coverage ratios.

Efficiency Ratios

Inventory turnover ratio                         times  

Days sales in inventory    days

Accounts receivables turnover times

DSO                                                    days

Asset Turnover Ratios                          

Total asset turnover                                   times

Fixed assets turnover    times

Leverage Ratios

Total debt ratio                                       times

Debt to equity ratio    times

Equity multiplier times

Coverage Ratios

Times interest earned                                times

Cash coverage                                         times

Reference no: EM131052389

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