1) Return on sales ? nY/Sales
= 5400/60000
= .09
2) ROA ? nY + Int Exp (net of tax) / Avg Total Assets
top = 5400 + (1500 x .06) = 6300
avg tot. assets: = 40000 + 38250 / 2 = 39375
(6300 / 39375) = .16
3) ROE ? nY/Avg Common Stockholders Equity
5400 / [(19500 + 16275)/2]
= .3018
4) Current ratio ? Current assets / Current liabilities
10,800 / 9000
= 1.2
5) Acid ? Test ? Quick Assets / Current Liabilities
QA= Cash & Mkt. Sec. + A/R
(1950 +3600)/9000
= .61
6) Debt to Equity Ratio ? Total Liabilities/Total stockholders Equity
21000/19500
= 1.08
7) Interest Coverage ? Operating Y (nY before taxes) / Int Expense
9000 / 1500
= 6
8) Dividend Payout Ratio ? Div p/ share of common stock / earnings p/ share
3.86 / 8.18
= 47.19
name of ratio Indstry Ratio Tioga Effect
Current 1.86 1.2 -
Acid-Test 0.85 0.61 -
Debt-Equity 1.23 1.08 -
Int Coverage 7.78 6 -
Dividend Payout 39.57 47.19% +
Return on Sales 3.42 9% +
ROA 6.37 16% +
ROE 12.48 30.18% +
Tioga's operations have proven them to perform at a level where risk is r ...