Balance Sheet And Income Statement Ratios

The balance sheet shows a company s total value while the income statement shows whether a company is generating a profit or a loss.

Balance sheet and income statement ratios. The twelve balance sheet ratios below can be calculated with the formula using financial statements of the company that is usually available in the annual report or on its website. In the absence of information about the date of repayment of a liability then it may be assumed. R h mfg inc. Financial ratios the balance sheet and income statement for the r h mfg.

Preparation of balance sheet horizontal and vertical style. Ratio 9 times interest earned interest coverage ratio. Company are as follows. Balance sheet and income statement ratios stockholders equity section of the balance sheet 2.

Balance sheet 000 cash 500 accounts receivable 2 000 inventories 1 000 current assets 3 500 net fixed assets 4 500 total assets 8 000 accounts payable 1 100 accrued expenses 600 short term notes payable 300 current liabilities 2 000 long term. Financial ratios using income statement amounts. Balance sheet ratio indicates relationship between two items of balance sheet or analysis of balance sheet items to interpret company s results on quantitative basis and following balance sheet ratios are financial ratio which include debt to equity ratio liquidity ratios which include cash ratio current ratio quick ratio and efficiency ratios which include account receivable turnover account payable turnover inventory turnover ratio. Working capital per dollar of sales working capital total sales receivable turnover net credit sales average net receivables for the period.

Formulas for both balance sheets and income statements when you can analyze both an income statement and a balance sheet side by side you can calculate several additional financial ratios. Green as at 31 march 2015 in both horizontal and vertical style. Financial consultation case study. In this section we discuss the following financial ratios which involve amounts reported on a company s income statement.

Ratio 8 earnings per share. Prepare balance sheet for f. Green as at 31 march 2015.