Question

In: Accounting

Calculate and submit the required financial ratios related to the Fortune 500 company you selected I...

Calculate and submit the required financial ratios related to the Fortune 500 company you selected

I chose Audi

Added note- For this week's ratio assignment choose four ratios that you think represent your company the best over three years

I am having trouble even grasping what's in the book. I need a bit help, any I can get thanks!!

Solutions

Expert Solution

Ratio analysis of Audi Co.

Particulars

2017

2018

2019

Price Earning Ratio

= Market Price÷Earning Per share

= 716.45÷81.60

= 8.78

=781.68÷78.64

= 9.94

=1075.25÷100.33

= 10.72

Asset Turnover Ratio

= Net Sales÷Total Assets

=59789÷63680

= 0.94

=59248÷65598

= 0.90

=55680÷66878

= 0.83

Current Ratio

= Current Assets÷Current Liabilities

=33846÷21208

= 1.60

=33205÷21351

= 1.56

=32422÷22271

= 1.46

Net Margin

= Net Profit÷Total Revenue ×100

=3432÷59789×100

= 5.74%

=3463÷59248 ×100

= 5.84%

=3943÷55680 ×100

= 7.08%

Debt to Equity Ratio

= Total Liabilities÷Shareholder's Equity

=35500÷28171

= 1.26

=35509÷29698

= 1.20

=38483÷28395

= 1.36

ekkarill92 answered 2 years ago

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