Small Business Management: Analysis of Financial Ratios

Running head: SMALL BUSINESS MANAGEMENT
Small Business Management
Name of the Student
Name of the University
Authors Note
Course ID

1SMALL BUSINESS MANAGEMENT
Table of Contents
Answer to question 8:.................................................................................................................2
Answer to question 9:.................................................................................................................5
Answer to question 10:...............................................................................................................6
References:.................................................................................................................................9

2SMALL BUSINESS MANAGEMENT
Answer to question 8:
Profitability Ratios:
Profitability Ratios 2008 2009 2010
Sales 1637610 1696564 1793268
Gross Profit 851557 909358 943259
Gross Profit Margin 52.00 53.60 52.60
Opearing Profit Margin 2008 2009 2010
Operating Expenses 542080 577315 600408
Gross Profit 851557 909358 943259
Operating Profit 309477 332043 342851
Sales 1637610 1696564 1793268
Opearing Profit Margin 18.90 19.57 19.12
Return on Capital Employed 2008 2009 2010
Net Operating Profit 309477 332043 342851
Employed Capital 468577 403194 474975
ROCE 0.66 0.82 0.72
Liquidity Ratios:
Liquidity Ratios 2008 2009 2010
Current Assets 772275 686291 726715
Current Liabilities 407422 346178 354650
Current Ratio 1.90 1.98 2.05
Quick Ratio 2008 2009 2010
Current Assets 772275 686291 726715
Less: Inventories 391238 331045 345678
Quick Assets 381037 355246 381037
Current Liabilities 407422 346178 354650
Quick Ratio 0.94 1.03 1.07