Calculating ratios portfolio
use a spreadsheet software program (like microsoft excel) to calculate and report the following information:
-what is the current ratio of this firm
-what is the quick ratio of this firm
-what is the inventory turnover ratio of this firm
-what is the receivables turnover of this firm
-what is the total asset turnover of this firm
-what is the times interest earned (tie) of this firm
-what is the total debt ratio of this firm
-what is the return on equity (roe) of this firm
-what is the return of assets (roa) of this firm
-what is the market-to-book ratio of this firm
-what is the price-to-earnings (p/e) ratio of this firm

This problem needs a Balance Sheet. Ratios are computed based on Balance Sheet, Income Statement, and Statement of Cash flows.

I'll just give out the formula needed to solve for each question.

Current ratio = Current Assets / Current Liabilities
* These figures are found in the Balance Sheet.

Quick ratio = (Cash + Marketable Securities + Accounts Receivable) ÷  Current Liabilities
* These figures are found in the Balance Sheet

Inventory turnover ratio = Cost of goods sold / Average Inventory
Inventory turnover ratio = 1,400,000 / Average Inventory

Receivables turnover = Net Credit Sales / Average Accounts Receivable
Assuming Sales is all on account,
Receivables turnover = 2,000,000 / Average Accounts Receivable

Total asset turnover = Net Sales / Total Assets
Assuming Sales is all net of sales returns and discounts, 
Total asset turnover = 2,000,000 / Total Assets

Times interest earned (TIE) = Income before Interest and Taxes / Interest Expense
Times interest earned = 370,000 / 50,000 = 7.4 times

Total debt ratio = Total Liabilities / Total Assets

Return on equity (ROE) = Net Income / Shareholders Equity
Return on equity = 240,000 / Shareholders' Equity 

Return on assets (ROA) = Net Income / Total Assets
Return on assets = 240,000 / Total Assets
 
Market-to-book ratio = Share Price / Net book value per share
Market-to-book ratio = 41.40 / Net book value per share

Price-to-earnings (P/E) ratio = Market Value per share / Earnings per share
Price-to-earnings ration = 41.40 / 2.40 = 17.25

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan