analtemplateRatio Analysis TemplateSample CompanyBalance SheetDec 31 2001Dec 31 2000Cash$52,000$60,000Accounts Receivable198,00080,000Marketable Securities80,00040,000Inventories440,000360,000Prepaids3,0007,000Total Current Assets773,000547,000Property, Plant, and Equipment, net857,000853,000Total Assets$1,630,000$1,400,000======================Current Liabilities$240,000$160,000Bonds Payable400,000400,000Common Equity990,000840,000Total Liabilities & Equity$1,630,000$1,400,000======================Income Statement20012000Sales$1,640,000$1,574,000Cost of Goods Sold800,000725,000Gross Profit840,000849,000SG&A440,000430,000Interest Expense40,00025,000Net Income$360,000$394,000======================Common Ratios2001Current3.221Acid Test1.375Debt to Asset0.393Receivable Turnover11.799Inventory Turnover2.000Profit Margin0.220Asset Turnover1.083Return on Assets24%Return on Equity39%

analtemplatePage &PThis file contains a spreadsheet that can be used as a template for conducting ratio analysis. Using the data below for Sample Company, several commonly used financial statement analysis ratios are computed, using the data contained in the cells for the Balance Sheet and Income Statement for Sample Company. Click on any of the cells containing a ratio to see how the ratios are computed based on cell-referenced formulas.

To use this template for analysis of another company, copy this template to another spreadsheet and substitute another company's financial statement data in place of the Sample Company data. Additional ratios and analysis can be performed by inserting your own ratio formulas into the spreadsheet and/or by incorporating additional information (e.g., free cash flow analysis or debt coverage ratios).