Financial ratio analysis
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This document contains financial ratio analysis for Fruit Shack Enterprise over three years. It shows improving liquidity, efficiency, profitability, and solvency ratios from year 1 to year 3, indicating stronger financial performance over time as current ratio, inventory turnover, gross and net profit margins, returns on assets and equity, and debt ratios all increased from the first to third year.
Financial ratio analysis
- 1. FRUIT SHACK ENTERPRISE FINANCIAL RATIO ANALYSIS Year 1 Year 2 Year 3 LIQUIDITY Current Ratio Quick Ratio (Acid Test) EFFICIENCY Inventory Turnover 5 5 #DIV/0! 9 9 #DIV/0! 15 15 #DIV/0! PROFITABILITY Gross Profit Margin Net Profit Margin Return on Assets Return on Equity 61.84% 2.73% 5.89% 7.74% 63.66% 10.34% 19.61% 23.56% 66.35% 17.98% 27.57% 30.67% SOLVENCY Debt to Equity Debt to Assets Time Interest Earned 31.36% 23.88% 5 20.11% 16.74% 29 11.26% 10.12% 75