Horizontal Analysis
Vertical Analysis
Common-sized Statements
Trend Percentages
Discontinued Operations and Extraordinary Items
Introduction to Ratios
Ratios: Earnings Per Share (EPS)
Ratios: Working Capital and the Current Ratio
Ratios: Quick (Acid Test) Ratio
Ratios: Gross Profit Rate
Ratios: Profit Margin
Ratios: Quality of Earnings Ratio
Ratios: Inventory Turnover
Ratios: Average Days in Inventory
Ratios: Accounts Receivable (AR) Turnover
Ratios: Average Collection Period (Days Sales Outstanding)
Ratios: Return on Assets (ROA)
Ratios: Total Asset Turnover
Ratios: Fixed Asset Turnover
Ratios: Profit Margin x Asset Turnover = Return On Assets
Ratios: Accounts Payable Turnover
Ratios: Days Payable Outstanding (DPO)
Ratios: Times Interest Earned (TIE)
Ratios: Debt to Asset Ratio
Ratios: Debt to Equity Ratio
Ratios: Payout Ratio
Ratios: Dividend Yield Ratio
Ratios: Return on Equity (ROE)
Ratios: DuPont Model for Return on Equity (ROE)
Ratios: Free Cash Flow
Ratios: Price-Earnings Ratio (PE Ratio)
Ratios: Book Value per Share of Common Stock
Ratios: Cash to Monthly Cash Expenses
Ratios: Cash Return on Assets
Ratios: Economic Return from Investing
Ratios: Capital Acquisition Ratio
Additional Practice
Ratios Cumulative Problems

Concept #1: Ratios: Total Asset Turnover

Practice: XYZ Company had net sales of $500,000 and COGS of $320,000. If the beginning balance of Total Assets was $300,000 and the ending balance in Total Assets was $400,000, what is the Total Asset Turnover ratio?

Practice: ABC Company had $200,000 in Net Sales and Gross Profit of $80,000. If Total Assets equaled $400,000, what is the Total Asset Turnover ratio?

Consider the following financial data for Aldo’s Music Stores: Calculate Aldo’s total asset turnover. a. 17.56 b. 0.73 c. 3.26 d. 3.94 e. 2.12
Current year sales revenues total $1,250,000. The total assets at the end of the previous year totaled $900,000. Total assets at the end of the current year totaled $980,000. What is the asset turnover ratio? A) 1.330 B) 1.389 C) 1.276 D) 1.156
Owl buttons had gross sales of $500,000, net sales of $400,000 and average total assets of $100,000. What was its total asset turnover ratio? a. 1/5 b. 1/4 c. 4.0 d. 5.0
An increase in average total assets, with all else remaining unchanged, will A) decrease financial leverage. B) increase asset turnover. C) decrease net profit margin. D) increase financial leverage
The net sales for the year total $4,000,000 and the December 31 cash balance is $50,000. Assets totaled $600,000 at the beginning of the year and $1,000,000 at the end of the year. What is the total asset turnover? A.4.00 B.4.40 C.5.00 D.6.51 E.None of the above
Consider the following financial data for Mary’s Home Accessories: Calculate Mary’s total asset turnover. a. 2.80 b. 1.43 c. 9.00 d. 0.72 e. 2.33
Over the past year, Roberts & Co. has realized an increase in its current ratio and a drop in its total asset turnover ratio.  However, the company’s sales, quick ratio, and fixed asset turnover ratio have remained constant.  What explains these changes? a. Net income has risen. b. Current liabilities have risen. c. The company is holding excessive levels of cash. d. Inventory levels have increased. e. Fixed assets have increased.
If a company has sales of $500,000, cost of goods sold of $100,000, operating expenses of $100,000, average inventory of $8,000, average accounts receivable of $10,000, and average total assets of $35,000, what is its total asset turnover: a. 50 b. 20 c. 14.29 d. 8.57 e. None of the above