Problem: Evaluate your selected organization's financial performance over the past two years using financial ratios. Calculate the following ratios for each year:
a) Current
b) Debt
c) ROI (return on investment)
d) Days receivable
|
Ratio
|
Formula
|
Calculation
|
|
2008
|
Calculation
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
Current
|
Current Assets
|
11,666,000
|
=
|
1.01
|
11,314,000
|
=
|
0.99
|
|
Ratio-
|
Current Liabilities
|
11,591,000
|
|
|
11,391,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt to
|
Total Liabilities
|
30,174,000
|
=
|
0.483
|
30,175,000
|
=
|
0.495
|
|
Total Assets-
|
Total Assets
|
62,497,000
|
|
|
60,928,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
|
Net Income
|
4,427,000
|
=
|
0.137
|
4,687,000
|
=
|
0.152
|
|
Equity-
|
Equity
|
32,323,000
|
|
|
30,753,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Days
|
Gross Receivables
|
6,397,000
|
=
|
61.700
|
5,894,000
|
=
|
60.583
|
|
Receivables-
|
Annual Net Sales/365
|
37,843,000/365
|
|
|
35,510,000/365
|
|
|
|
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|