CWUF Financial Ratio Analysis Worksheet
Your Name:
2019
2018
Basic Rules
Liquidity
Current Ratio
Should be >1.00
Quick Ratio
Good to see close to 1
Leverage
Debt to total asset ratio
Good to see less than 1
Debt to Equity ratio
Smaller is better
Activity
Inventory turnover
Higher turnover will be better — Smaller inventory level will increase the turnover!
Fixed asset turnover
Higher turnover will be better — Smaller fixed assets level will increase the turnover (Productivity of the fixed assets)!
Profitability
Gross profit margin
Higher is better (Lower cost of goods sold or Higher sales will increase the margin) — Strategic directions (Ex. Focusing on sales quantity or Lean operations)
Operating profit margin
Higher is better – Operational efficiency will be indicated. Better cost structure might increase this margin.
Net profit margin
Higher is better. Total profitability (Corporate profitability). Check the interest expense and Discontinued operations.
Return on total Assets (ROA)
Higher is better. Consider EBIT and portion of total assets. The total sales for each $1 of total assets.
Your financial analyses and strategic suggestions:
Liquidity of CWUF:
Leverage of CWUF:
Activity of CWUF:
Profitability of CWUF:
