Ratio Analysis Questions

Company: Fresh Bites Bakery

• Revenue: $200,000

• Cost of Sales / Cost of Goods Sold (COGS): $80,000

Question: Calculate the Gross Profit Margin (GPM).

Company: Spark Electronics

• Revenue: $500,000

• Operating Expenses: $120,000

• Cost of Goods Sold: $250,000

Question: Calculate the Profit Margin.

Company: SolarTech Ltd.

• Operating Profit: $90,000

• Total Capital Employed (Equity + Long-Term Debt): $600,000

Question: Calculate the Return on Capital Employed (ROCE).

Company: GreenLeaf Garden Supplies

Balance Sheet:

Current Assets

Amount ($)

Cash 15,000

Accounts Receivable 25,000

Inventory 30,000

Total Current Assets 70,000

Liabilities

Creditors 20,000

Short-Term Loans 30,000

Total Current Liabilities 50,000

Question: Calculate the Current Ratio.

Company: TechNova Gadgets

• Current Assets: $120,000

• Inventory: $50,000

• Current Liabilities: $70,000

Question: Calculate the Acid Test (Quick) Ratio.

Company: Trendy Apparel

• COGS: $400,000

• Average Inventory: $80,000

Question: Calculate the Stock Turnover Ratio (times).

Company: AutoMotiveX

Amount ($)

Long-Term Debt 400,000

Equity 600,000

Question: Calculate the Gearing Ratio

Company: CloudSoft Solutions

• Accounts Receivable: $50,000

• Annual Revenue: $600,000

Question: Calculate the Debtor Days Ratio.

Company: Urban Furniture

Profit & Loss Account:

• COGS: $300,000

Balance Sheet (Liabilities Section Only):

• Accounts Payable: $60,000

• Question: Calculate the Creditor Days Ratio.