Financial Ratio Analysis kraft

Financial Ratio Analysis

1. Liquidity Ratio

Current Ratios= Current AssetsCurrent Liabilities

Quick Ratio=Current Assets−InventoryCurrent Liabilities

NetWorkingCapital ¿−sales=Current Assets−Current LiabilitiesSales

2. Profitability Ratio

Gross Profit Margin=Gross IncomeSales

Operating Profit Margin=Operating IncomeSales

Net Profit Margin= Net IncomeSales

3. Financial Leverage ratio

Components Percentage Financial Leverage Ratio

Total Debt ¿ Assets Ratio=Total LiabilityTotal Assets

Long−TermDebt ¿Assets=Long−TermDebtTotal Assets

Total Debt ¿Equity Ratio= Total Liability

Total Shareholde r ' s Equity

Coverage Financial Leverage Ratio

¿−Interest−Coverage Ratio=Earnings before interest∧taxesInterest

4. Shareholder’s Ratio

Dividend Payout Ratio=DividendsEarnings

Retention Ratio= Earnings−DividendsEarnings

Financial Ratio Analysis

Liquidity ratio  2006 2007 2008Current ratio  0.788122 0.628409 1.029156Quick ratio 0.453356 0.388681 0.691507Net working capital to sales -0.06672 -0.17571 0.00763

Profitability ratio  2006 2007 2008Gross profits margins 0.358191 0.334228 0.332101Operating profits margin  0.12491 0.109758 0.090448Net profits margin 0.092013 0.071678 0.068742

Financial Leverage RatioComponent percentage financial leverage ratio 2006 2007 2008

Total debt to assets ratio0.486181

0.598562

0.648055

Long term debt to asset0.127416

0.189755

0.294699

Total debt to equity ratio0.946209

1.491042

1.841351

Coverage financial leverage ratio 2006 2007 2008

Times-interest-coverage ratio0.122773

0.152295

0.324862

Shareholders ratio dividend  2006 2007 2008Dividend Payout Ratio 0.000314 0.000402 0.000386