Question

Calculate the solvency, liquidity, asset management efficiency, and profitability ratios of the most recent year for the company AT & T

Answer 1

	AT & T
	Profitability ratio for the year 2018
1-	gross profit ratio = gross profit/sales	91337000/170756000	53.49%
2-	Operating profit ratio = operating profit/total revenue	31618000/170756000	18.52%
3-	net profit ratio = net profit/total revenue	19370000/170756000	11.34%
	Asset Management Efficiency ratio
1-	total asset turnover ratio = total revenue/total assets	170756000/531864000	0.32
2-	accounts receivable turnover ratio = total revenue/average accounts receivables	170756000/18733500	9.12
	average accounts receivables =(beginning balance+year end balance)/2	(19164000+18303000)/2	18733500
3-	Inventory turnover ratio = cost of revenue/total average inventory	79410000/2498000	31.79
	average Inventory =(beginning balance+year end balance)/2	(2771000+2225000)/2	2498000
	Liquidity ratio
1-	current ratio = totl of current assets/total of current liabilities	51417000/64420000	0.80
2-	quick ratio = total of quick assets/total of current liabilities	48646000/64420000	0.76
	total of quick assets = total current assets-inventory	51417000-2771000	48646000
3-	cash ratio = cash and cash equivalent/total liabilities	5204000/64420000	0.08
4-	solvency ratio
1-	debt ratio = total of liabilities/total assets	337980000/531864000	0.64
2-	debt equity ratio = total of liabilities/total of shareholders equity	337980000/184089000	1.84
3-	Interest coverage ratio = EBIT/interest	31618000/4920000	6.43