GET RICH QUICK CO.

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GET RICH QUICK CO.

• Financial Statement Ratio Analysis
• Profitability
• Long-Term Financial Position
• Short-Term Financial Position

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Basics of FSA

• These ratios do not exist in a vacuum
• By themselves, they do not provide much meaning
• They need to be compared to something
• Trends over time
• Key competitors
• Industry averages

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PROFITABILITYEARNINGS PER SHARE
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PROFITABILITYEARNINGS PER SHARE
Net Income Preferred Dividends
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PROFITABILITYEARNINGS PER SHARE
Net Income Preferred Dividends Number of Common
Shares Outstanding
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PROFITABILITYEARNINGS PER SHARE
Net Income Preferred Dividends Number of Common
Shares Outstanding 180,000- 0
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PROFITABILITYEARNINGS PER SHARE
Net Income Preferred Dividends Number of Common
Shares Outstanding 180,000 - 0
100,000 shares
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PROFITABILITYEARNINGS PER SHARE
Net Income Preferred Dividends Number of Common
Shares Outstanding 180,000 - 0
1.80 100,000 shares
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PROFITABLITYPRICE/EARNINGS RATIO
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PROFITABLITYPRICE/EARNINGS RATIO
Market Price per Share
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PROFITABLITYPRICE/EARNINGS RATIO
Market Price per Share Earnings per Share
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PROFITABLITYPRICE/EARNINGS RATIO
Market Price per Share Earnings per Share
18.00
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PROFITABLITYPRICE/EARNINGS RATIO
Market Price per Share Earnings per Share
18.00 1.80
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PROFITABLITYPRICE/EARNINGS RATIO
Market Price per Share Earnings per Share
18.00 10 1.80
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PROFITABILITYRETURN ON ASSETS

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PROFITABILITYRETURN ON ASSETS
(Income Interest Exp.) X Sales
Sales Assets
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PROFITABILITYRETURN ON ASSETS
(Income Interest Exp.) X Sales
Sales Assets
(Operating Margin) X (Asset Turnover)
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PROFITABILITYRETURN ON ASSETS
(Income Interest Exp.) X Sales
Sales Assets
(Profit Margin) X (Asset Turnover) (180,000
30,000) 3,000,000
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PROFITABILITYRETURN ON ASSETS
(Income Interest Exp.) X Sales
Sales Assets
(operating Margin) X (Asset
Turnover) 180,00030,000 X 3,000,000
13 3,000,000 1,620,000
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PROFITABILITYRETURN ON EQUITY
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PROFITABILITYRETURN ON EQUITY
Net Income
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PROFITABILITYRETURN ON EQUITY
Net Income Stockholders Equity

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PROFITABILITYRETURN ON EQUITY
Net Income Stockholders Equity
180,000
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PROFITABILITYRETURN ON EQUITY
Net Income Stockholders Equity
180,000 1,080,000
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PROFITABILITYRETURN ON EQUITY
Net Income Stockholders Equity
180,000 16.7
1,080,000
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LONG-TERM FIN. CONDITIONRATIO OF DEBT TO ASSETS
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LONG-TERM FIN. CONDITIONRATIO OF DEBT TO ASSETS
Liabilities
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LONG-TERM FIN. CONDITIONRATIO OF DEBT TO ASSETS
Liabilities Assets
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LONG-TERM FIN. CONDITIONRATIO OF DEBT TO ASSETS
Liabilities Assets
540,000
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LONG-TERM FIN. CONDITIONRATIO OF DEBT TO ASSETS
Liabilities Assets
540,000 1,620,000
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LONG-TERM FIN. CONDITIONRATIO OF DEBT TO ASSETS
Liabilities Assets
540,000 33.3
1,620,000
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LONG-TERM FIN. CONDITIONRATIO OF EQUITY TO ASSETS
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LONG-TERM FIN. CONDITIONRATIO OF EQUITY TO ASSETS
Stockholders Equity
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LONG-TERM FIN. CONDITIONRATIO OF EQUITY TO ASSETS
Stockholders Equity Assets

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LONG-TERM FIN. CONDITIONRATIO OF EQUITY TO ASSETS
Stockholders Equity Assets
1,080,000
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LONG-TERM FIN. CONDITIONRATIO OF EQUITY TO ASSETS
Stockholders Equity Assets
1,080,000 1,620,000
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LONG-TERM FIN. CONDITIONRATIO OF EQUITY TO ASSETS
Stockholders Equity Assets
1,080,000 66.7
1,620,000
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CURRENT FIN. CONDITIONCURRENT RATIO
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CURRENT FIN. CONDITIONCURRENT RATIO
Current Assets
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CURRENT FIN. CONDITIONCURRENT RATIO
Current Assets Current Liabilities

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CURRENT FIN. CONDITIONCURRENT RATIO
Current Assets Current Liabilities
280,000
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CURRENT FIN. CONDITIONCURRENT RATIO
Current Assets Current Liabilities
280,000 40,000
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CURRENT FIN. CONDITIONCURRENT RATIO
Current Assets Current Liabilities
280,000 7
40,000
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CURRENT FIN. CONDITIONQuick Ratio
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CURRENT FIN. CONDITIONQuick Ratio
Quick Assets
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CURRENT FIN. CONDITIONQuick Ratio
Quick Assets Current Liabilities

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CURRENT FIN. CONDITIONQuick Ratio
Quick Assets Current Liabilities
200,000
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CURRENT FIN. CONDITIONQuick Ratio
Quick Assets Current Liabilities
200,000
40,000
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CURRENT FIN. CONDITIONQuick Ratio
Quick Assets Current Liabilities
200,000 5
40,000
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CURRENT FIN. CONDITIONAvg. Collection Period
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CURRENT FIN. CONDITIONAvg. Collection Period
Accounts Receivable
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CURRENT FIN. CONDITIONAvg. Collection Period
Accounts Receivable Average Daily Sales

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CURRENT FIN. CONDITIONAvg. Collection Period
Accounts Receivable Average Daily Sales
150,000
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CURRENT FIN. CONDITIONAvg. Collection Period
Accounts Receivable Average Daily Sales
150,000 3,000,000 /360 days (
8,333)
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CURRENT FIN. CONDITIONAvg. Collection Period
Accounts Receivable Average Daily Sales
150,000 18 days
3,000,000 /360 days ( 8,333)
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CURRENT FIN. CONDITIONAvg. Days Supply in
Inventory
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CURRENT FIN. CONDITIONAvg. Days Supply in
Inventory
Inventory
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CURRENT FIN. CONDITIONAvg. Days Supply in
Inventory
Inventory Avg. Daily Cost of Goods Sold

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CURRENT FIN. CONDITIONAvg. Days Supply in
Inventory
Inventory Avg. Daily Cost of Goods Sold
80,000
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CURRENT FIN. CONDITIONAvg. Days Supply in
Inventory
Inventory Avg. Daily Cost of Goods Sold
80,000 2,000,000/360 days (
5,555)
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CURRENT FIN. CONDITIONAvg. Days Supply in
Inventory
Inventory Avg. Daily Cost of Goods Sold
80,000 14.4
days 2,000,000/360 days ( 5,555)
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