Current ratio =

The formula for calculating a company’s current ratio, then, is:

Current Ratio = Current Assets / Current Liabilities

=8688/5726

=1.52

larger current ratio is better than a smaller ratio.Current ratio that is less than 1:1 is good indicates .So in the prasent case it is good current ratio

The current ratio is a liquidity ratio that measures a company’s ability to pay short-term and long-term obligations. To gauge this ability, the current ratio considers the total assets of a company (both liquid and illiquid) relative to that company’s total liabilities.

Quick ratio

quick ratio = (current assets – inventories) / current liabilities,

=(8688-5557)/5726

=3131/5726

=0.54

A common rule of thumb is that companies with a quick ratio of greater than 1.0 are sufficiently able to meet their short-term liabilities

Inthe prasent cse it is less then 1 so it is not good indicator. Company’s liquidity posiyion is not well

Inventory turnover

Inventory Turnover = Sales / Inventory

=27931/5557

=5.03

ratio showing how many times a company’s inventory is sold and replaced over a period. This mean that in this company inventory sold for 5 times in the yar

Debt ratio

Debt ratio = Total Assets/ Total Debt

=21634/(5726+6728+1273+1658)

=21634/15385

=1.04

This ratio measures the extent of a company’s or consumer’s leverage. It can be interpreted as the proportion of a company’s assets that are financed by debt.The higher the ratio, the greater risk will be associated with the firm’s operation

In this case it is more then 1 so we can say that greater risk will be associated with the firm’s operation

Receivables turnover

Receivables turnover = Net Credit sales/Avg Account recevable

=27931/438

=63.77

A high receivables turnover ratio is good for a company. in the prasent case it indicate that the company’s collection of accounts receivable is efficient.

Vertical analysis of the most current period’s current assets

Particular	Amt	%
Cash and cash equivalents	2273	26.16%
Receivables	438	5%
Merchandise inventories	5557	63.96
Prepaid expenses and other current assets	420	4.88%
Total	8688	100%

Explanation :

From the above calculaion we can say that major portion of the current assets is kept in the inventory

Horizontal analysis of total revenue

Horizontal analysis is also known as also known as trend analysis. Horizontal analysis allows the assessment of relative changes in different items over time. It also indicates the behavior of revenues, expenses, and other line items of financial statements over the course of time.

Horizontal analysis of net income (use 2 or 3 years)

Net income in the year 2013 is more then previous year 2012 and 2011 because sale is more in the year 2013 as well as interest expenses is lower in 2013 so net income is more in the year 2013

Basic earning is also more 2013 then previous year 2012 and 2011 so it is good indicator