A3.1.

Liquidity Ratio

Liquidity ratio is a financial factor that measure the ability of the firm to meet
maturing short-term obligations as well as meeting such obligations without relying on
the sale of the companys inventory. It can be determined through computation of
Current Ratio and Quick Ratio. The quotient of current assets and current liabilities will
yield current ratio and the quotient of current assets less inventory and current liabilities
will provide for the Quick Ratio.
Year 2011

Year 2012

35, 216.40
5,952.40

Current ratio
=

Current Assets
Current Liabilities

237,127.28
183,654.95

= 5.91

35, 216.400
5,952.40

Quick (or acid-test) ratio

=

= 5.91
Current AssetsInventory
Current Liabilities

A3.2.

= 1.29

Total Debts =0.10

Total Stockholders Equity
Long-term debt-to-equity
ratio
=

increases.

Is the final value increasing,

decreasing or constant?

= 2.42

Year 2012

183,655
266,002
=0.69

5,952.40
60,764.00

Debt-to-equity ratio

2012 declines and in 2013 it

Leverage Ratio

=0.09

Observations
The final values is fluctuating as

= 2.42

237,127.280 22,459,0130
183,654.95
9,271,451

5,952.40
66,716.40

Total Debts
Total Assets

22,459,013
9,271,451

= 1.29

Year 2011
Debt-to-total-assets ratio

Year 2013

183,655
82,347
=2.23

Year 2013

23,223,692
23,568,673

Observations
increasing

=0.99

23,223,692
344,981

increasing

= 67.32

13,952,241
344,981

No point of comparison

LongTerm Debt
Total Stockholders Equity
Times-interest-earned (or

= 40.44

coverage) ratio
=

Profits before interest Taxes

Total Interest charges
A3.3.

Activity Ratio
Year 2011

Inventory turnover

Year 2012
-

Year 2013

Observations

Sales
Inventory of Finished Goods
55,803.57
31,500

Fixed assets turnover

=

Sales
Assets
=

55,803.57
66716.40

Total assets turnover

=

2,377,607.14
28,875

Sales
Total Assets
=

2,377,607.14
266,002
=

Accounts receivable

19,944,193
1,109,660
19,944,193
23,568,673
=

turnover
=

Annual Credit Sales

Account Receivables
Average collection
period
=

Accounts Receivables
Total credit sales/365 days
A3.4.

Profitability Ratio
Year 2011

Gross profit margin

=

20,996.07
55,803.57

Year 2012

832,162.50
2,377,607.14

Year 2013

6,731,165
19,944,193

Observations

= Sold
SalesCost of Goods
Sales
Operating profit margin

= taxes
Earning before interest
Sales
Net profit margin
=

Net Income
Total Assets

Return on stockholders
=

Increasing but also decreasing

=0.01

=0.26

= -0.03

262,634
23,568,673

21,583 .33
82,347

(1,736)
66,716.40

equity (ROE)

=0.08

= -0.03

262,634
19,944,193

21,583 .33
266,002

(1,736)
66,716.40

(ROA)

368,217
19,944,193

21,583.33
2,377,607.14

(1,736)
55,803.57

Net Income
Sales

Return on Total Assets

30,833.33
2,377,607.14

(619.13)
55,803.57

262,634
344,981

Increasing

=0.76

Net Income
Total Stockholder ' s Equity
Earnings per share (EPS)

262,634
250,000

10/

10

1/

Net Income
Number of Shares of common
stock outstanding
Price-earnings ratio

21,583 .33
25,000

(1,736)
25,000

Market price per share

Earnings per share
A3.5.

Growth Ratio
Year 2011 and Year 2012

Growth Ratio on Sales

=

Service Income of Year 20112012

Service Income for Yaer 20122013
Growth Ratio on Net Income

Year 2012 and Year 2013

Observations

Net Income of Year 20112012

Net Income for Yaer 20122013
Growth Ratio on Earnings per
share
=

EPS of Year 20112012

EPS for Yaer 20122013