explain and differentiate between each of this ratio amount for year 2021 and 2022 in paragraphs. give explanantion why does we get such amount
RATIO FORMULA CALCULATION
Account Receivables Turnover Ratio
(Sales on credit)/(Account receivable)
(295,832,845)/(31,614,935)=9.36
Inventory Turnover Ratio
(Cost of goods sold)/Inventory
(214,159,313)/(28,211,902)=7.59
Current Ratio
(Current assets)/(Current liabilities)
(126,997,765)/(60,890,186)=2.09
Quick Ratio
(Current asset-Inventory)/(Current liabilities)
(126,997,765-28,211,902)/(60,890,186)=1.62
Debt to Equity Ratio
(Total liabilities)/(Owner equity)
(68,133,625)/(80,000,000)=0.85
Debt Structure Ratio
(Current liabilities)/(Total liabilities)
(60,890,186)/(68,133,625)=0.89
Net Working Capital
Current assets-Current liabilities
126,997,765-60,890,186=661,075,579
Debt to Asset Ratio
(Total liabilities)/(Total assets)
(68,133,625)/(207,153,461)=0.33
Return on Assets
(Net income)/(Total assets)
(27,240,004)/(207,153,461)=0.13
Return on Equity
(Net income)/(Owner equity)
(27,240,004)/(139,019,836)=0.20
Equity to Asset Ratio
(Owner equity)/(Total assets)
(80,000,000)/(207,153,461)=0.39
Net Capital Ratio
(Total assets)/(Total liabilities)
(207,153,461)/(68,133,625)=3.04
YEAR 2022
RATIO FORMULA CALCULATION
Account Receivables Turnover Ratio
(Sales on credit)/(Account receivable)
(318,194,335)/(40,168,825)=7.92
Inventory Turnover Ratio
(Cost of goods sold)/Inventory
(239,911,882)/(29,941,476)=8.01
Current Ratio
(Current assets)/(Current liabilities)
(133,315,439)/(64,883,267)=2.05
Quick Ratio
(Current asset-Inventory)/(Current liabilities)
(133,315,439-29,941,476)/(64,883,267)=1.59
Debt to Equity Ratio
(Total liabilities)/(Owner equity)
(71,735,198)/(141,100,750)=0.51
Debt Structure Ratio
(Current liabilities)/(Total liabilities)
(64,883,267)/(71,735,198)=0.90
Net Working Capital
Current assets-Current liabilities
133,315,439-64,883,267=68,432,172
Debt to Asset Ratio
(Total liabilities)/(Total assets)
(71,735,198)/(212,835,948)=0.34
Return on Assets
(Net income)/(Total assets)
(26,080,914)/(212,835,948)=0.12
Return on Equity
(Net income)/(Owner equity)
(26,080,914)/(141,100,750)=0.18
Equity to Asset Ratio
(Owner equity)/(Total assets)
(141,100,750)/(212,835,948)=0.66
Net Capital Ratio
(Total assets)/(Total liabilities)
(212,835,948)/(71,735,198)=2.97
explain and differentiate between each of this ratio amount for year 2021 and 2022 in paragraphs. give explanantion why does we get such amount
RATIO FORMULA CALCULATION
Account Receivables Turnover Ratio
(Sales on credit)/(Account receivable)
(295,832,845)/(31,614,935)=9.36
Inventory Turnover Ratio
(Cost of goods sold)/Inventory
(214,159,313)/(28,211,902)=7.59
Current Ratio
(Current assets)/(Current liabilities)
(126,997,765)/(60,890,186)=2.09
Quick Ratio
(Current asset-Inventory)/(Current liabilities)
(126,997,765-28,211,902)/(60,890,186)=1.62
Debt to Equity Ratio
(Total liabilities)/(Owner equity)
(68,133,625)/(80,000,000)=0.85
Debt Structure Ratio
(Current liabilities)/(Total liabilities)
(60,890,186)/(68,133,625)=0.89
Net Working Capital
Current assets-Current liabilities
126,997,765-60,890,186=661,075,579
Debt to Asset Ratio
(Total liabilities)/(Total assets)
(68,133,625)/(207,153,461)=0.33
Return on Assets
(Net income)/(Total assets)
(27,240,004)/(207,153,461)=0.13
Return on Equity
(Net income)/(Owner equity)
(27,240,004)/(139,019,836)=0.20
Equity to Asset Ratio
(Owner equity)/(Total assets)
(80,000,000)/(207,153,461)=0.39
Net Capital Ratio
(Total assets)/(Total liabilities)
(207,153,461)/(68,133,625)=3.04
YEAR 2022
RATIO FORMULA CALCULATION
Account Receivables Turnover Ratio
(Sales on credit)/(Account receivable)
(318,194,335)/(40,168,825)=7.92
Inventory Turnover Ratio
(Cost of goods sold)/Inventory
(239,911,882)/(29,941,476)=8.01
Current Ratio
(Current assets)/(Current liabilities)
(133,315,439)/(64,883,267)=2.05
Quick Ratio
(Current asset-Inventory)/(Current liabilities)
(133,315,439-29,941,476)/(64,883,267)=1.59
Debt to Equity Ratio
(Total liabilities)/(Owner equity)
(71,735,198)/(141,100,750)=0.51
Debt Structure Ratio
(Current liabilities)/(Total liabilities)
(64,883,267)/(71,735,198)=0.90
Net Working Capital
Current assets-Current liabilities
133,315,439-64,883,267=68,432,172
Debt to Asset Ratio
(Total liabilities)/(Total assets)
(71,735,198)/(212,835,948)=0.34
Return on Assets
(Net income)/(Total assets)
(26,080,914)/(212,835,948)=0.12
Return on Equity
(Net income)/(Owner equity)
(26,080,914)/(141,100,750)=0.18
Equity to Asset Ratio
(Owner equity)/(Total assets)
(141,100,750)/(212,835,948)=0.66
Net Capital Ratio
(Total assets)/(Total liabilities)
(212,835,948)/(71,735,198)=2.97
