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Republic of the Philippines

BATANGAS STATE UNIVERSITY


The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS
AND INTERNATIONAL HOSPITALITY MANAGEMENT

PUFFY LOVE
Financial Ratio Analysis
Liquidity Ratio Formula Solution Answer

Working Capital Current Assets-Current Liabilities 3,921,382-320,727 3,600,655

Current Ratio Current Assets/Current Liabilities 3,921,382/320,727 12.23


Acid Test Ratio or Quick (Cash+Accounts Receivable)/Current
Ratio Liabilities (3,614,189+96,608)/320,727 11.57
Cash Ratio Cash/Current Liabilities 3,614,189/320,727 11.27
Solvency Ratio Formula Solution Answer

Debt Ratio Total Liabilities/ Total Assets 620,727/6,622,882 9.37%


Equity Ratio Total Owner's Equity/Total Asset 5,952,155/6,622,882 89.87%
Debt to Equity Ratio Total Liabilities/Total Owner's Equity 620,727/5,952,155 10.43%
Profitability Ratio Formula Solution Answer
Gross Profit Ratio Gross Profit/Net Sales 1,547,420/3,220,270 48.05%
Net Income Before Tax/Net Sales 660,990/3,220,270 20.53%
Profit Margin Ratio Net Income After Tax/Net Sales 641,160/3,220,270 19.91%
Operating Expenses Ratio Operating Expenses/Net Sales 886,430/3,220,270 27.53%

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Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS
AND INTERNATIONAL HOSPITALITY MANAGEMENT

38

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