Salco Inc.



Salco Inc.

Financial statements are a main source of financial information for an organization. Users analyze these statements to evaluate the ability of an organization to use its resources efficiently and effectively and form expectations about risks and returns by studying the changes in assets, liabilities, earnings and cash flows over time. We shall analyse Salco Inc. balance sheet with regards to specific questions.

RATIOS

Part A

Part B

Part C

Total Asset Turnover

Sales/Total assets

2.25 times

Operating Profit Margin

Sales-Cost of sales/Sales

11.11%

Operating Return on Assets

Operating Income/Total Assets

0.25

Debt Ratio

50 %

50 %

Operating Profit Margin

Sales-Cost of sales/Sales

11.11 %

13 %

 

Operating Return on Assets

Operating Income/Total Assets

25 %

19.5 %

Operating Income (For ...