Financial statement and analysis and assessment
Ned answers on the below for Ford Motor Company 2012
Return on invested capital
Return net operating assets (RNAO) = Net operating profit after tax/ Average net operating assets
Dividend payout rate = Cash dividends paid/ Net income
Effective tax rate = Tax expense/Income before income tax
Analysis description of each of the three ratios:
Profitability
Gross profit margin = (Sales –Cost of sales)/Sales
Book value per share = (Shareholder’s equity-preferred equity)/Number of shares outstanding
Operating cash flow to income = Operating cash flow/Net income
Analysis description of each of the three ratios:
Asset utilization and efficiency
Net operating assets turnover = Sales/Average net operating assets
Accounts receivable turnover = Sales/Average accounts receivable
Days sales in receivables = (Accounts receivable X 360)/Sales
Analysis description of each of the three ratios:
Liquidity
Current ratios = Current assets/Current liabilities
Working capital = Current assets – Current liabilities
Inventory turnover = Cost of sales/Average inventory
Analysis description of each of the three ratios:
Capital structure and solvency
Total debt ratio = Total liabiltiies/Total assets
Total debt to equity ratio = Total liabilities/Shareholder’s equity
Long term debt to equity = Long term liabilities/Shareholder’s equity
Analysis description of each of the three ratios:
Financial market
Price to earnings = Market price per common share/Earnings per share
Price to book = Market price per common share/Book value per common share
Earnings yield = Earnings per share/ Market price per common share
Analysis description of each of the three ratios:
