Calculation of Ratios

Calculation of Ratios

• Current Ratio – Current Ratio = Current Asset / Current Liability

Current Assets = $17,490

Current Liabilities = $14,869
Current Ratio = Current Asset /Current Liability = $17,490/ $14,869= 1.176

• ROE (%) – ROE = Net Profit after taxes/Shareholder Equity

Net Profit after taxes = 922 – 291 = $ 631

Shareholder Equity = $ 7,757

ROE = NP after taxes/Shareholder Equity = $ 631/ $ 7,757= 0.0813

ROE % = 0.0813*100 = 8.134 %

• ROI% – ROI = Net Profit after taxes/ Total Assets

Net Profit after taxes = 922 – 291 = $631

Total Assets = $25,278

ROI = NP after taxes/Total Assets = $ 631/ $25,278 = 0.0249

ROI % = 0.0249*100 = 2.49%

 

 

• Net Profit Margins (%) – NPM = NI/Revenue

NI = $ 631

Revenue = $ 48,077

NPM = NI/Revenue = $ 631/ $ 48,077 = 0.0131

Net Profit Margins (%) = 1.312 %