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I know there are more advanced ratio so I am including the suggested ones below. It should be about 500 to 600 words and in charts and cited APA
| Liquidity Analysis Ratios |
| Current Assets | ||
| Current Ratio = | ———————— | |
| Current Liabilities | ||
| Quick Assets | ||
|
Quick Ratio = |
———————- | |
| Current Liabilities | ||
| Quick Assets = Current Assets – Inventories |
| Net Working Capital | ||
|
Net Working Capital Ratio = |
————————– | |
| Total Assets | ||
| Net Working Capital = Current Assets – Current Liabilities |
| Profitability Analysis Ratios |
| Net Income | ||
|
Return on Assets (ROA) = |
———————————- | |
| Average Total Assets | ||
| Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2 |
| Net Income | ||
|
Return on Equity (ROE) = |
——————————————– | |
| Average Stockholders’ Equity | ||
| Average Stockholders’ Equity = (Beginning Stockholders’ Equity + Ending Stockholders’ Equity) / 2 |
| Net Income | ||
|
Return on Common Equity = |
——————————————– | |
| Average Common Stockholders’ Equity | ||
| Average Common Stockholders’ Equity = (Beginning Common Stockholders’ Equity + Ending Common Stockholders’ Equity) / 2 |
| Net Income | ||
|
Profit Margin = |
—————– | |
| Sales | ||
| Net Income | ||
|
Earnings Per Share = |
——————————————— | |
| Number of Common Shares Outstanding | ||
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| Activity Analysis Ratios |
| Sales | ||
|
Assets Turnover Ratio = |
—————————- | |
| Average Total Assets | ||
| Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2 |
| Sales | ||
|
Accounts Receivable Turnover Ratio = |
———————————– | |
| Average Accounts Receivable | ||
| Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2 |
| Cost of Goods Sold | ||
|
Inventory Turnover Ratio = |
————————— | |
| Average Inventories |








Jermaine Byrant
Nicole Johnson



