Serenity Airlines Financial Ratios

Current Assets Current Liabilities

Accounts
Common Stock $1,500,000 $1,238,623
Payable
Short-Term
Accounts Receivable $1,485,277 $15,124,003
Debt D4
Total current
$16,362,626
Total current Assets B5 $2,985,277 Liabilities
Common Stock capital $1,500,000
Retained Earnings -$3,642,590 long-term $255,241
Total Equity B8 -$2,142,590 Total debt D8 $16,617,867
Total Operating Expenses $ (4,387,494)
Total Net Revenue B10 $ 3,081,749
Operating Profit or Loss $ (1,305,745)
Other Income $ 32,490
Net Income, Net Profit/loss B13 $ (1,273,255)

Serenity Airlines Analysis of Ratios

Current Ratio Current assets/Current Liabilities (liquidity)
meaning B5/D4 0.20 0.2 per $1 relationship
Debt to Equity Total Debt/Total Equity (leverage)
meaning D8/B8 7.76 8 to 1
return of shareholders investment in the firm
Return on Sales Net profit or loss/Net Revenues (profitability)
ROS -0.41 minus 41.3%
net income earned, loss B13/B10 for each $1 of Sales (revenues)
Net Operating Profit Margin -41.30% additional funding needed

Comparison with the Industry Serenity Industry

Current Ratio 0.200 1.271
Debt to Equity 8 0.11
Return on Sales -0.41 -0.12

Comparison Chart on Ratios

Return on Sales

Debt to Equity

Current Ratio

-1.000 0.000 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000

Industry Serenity