Question

Find the EPS ratio, current ratio, quick ratio, cash ratio, p/e ratio and dividend yield ratio using the comparative financial statements.

Answer 1

Earnings Per share = Net Income / Number of common shares outstanding

= $21,700 / 3,925 shares

= $5.53 per share

Current Ratio = Total Current Assets / Total Current Liabilities

= (Cash + Account receivables + Inventories) / Total Current Liabilities

= ($5,400 + $14,700 + $41,400) / $16,700

= $61,500 / $16,700

= 3.68

Quick Ratio = Total Quick Assets / Total Current Liabilities

= (Cash + Account receivables) / Total Current Liabilities

= ($5,400 + $14,700) / $16,700

= $20,100 / $16,700

= 1.20

Cash Ratio = Cash / Total Current Liabilities

= $5,400 / $16,700

= 0.32

P/E Ratio = Current Market Price per share / Earnings per share

= $35.00 per share / $5.53 per share

= 6.33

Dividend Yield Ratio = (Dividend per share / Current Market Price per share) * 100

= [$7.00/ $35.00] * 100

= 0.20

= 20.00%