Stingray Inc. Ratio’s

StingRay Inc. Ratio’s

1. Current Ration = Current Assets / Current Liabilities

$184,000.00 / $286,000.00 = 0.64:1

For every dollar of current liabilities, StingRay Inc. has 64 cents of current assets.

1. Quick Ratio = Current Assets – Inventory / Current Liabilities

$184,000.00 - $10,000.00 - $6,000.00 - $8,000.00 / $286,000.00 = 0.56:1

The quick ratio shows an analysis for cash that is quickly sourced excluding inventories and certain account receivables. In StingRay Inc. the quick ratio shows a difference of eight cents less of the current ratio.

1. EPS Ratio= Profit – Preferred Dividends / Weighted average number of Common Shares

$241,000.00 - $18,000.00 / $100,000.00 = $2.23

The net earnings for each common share in StingRay Inc. is $2.23 per share.

1. P.E. Ratio = Market price per share / Earnings per share

$60.00 / $2.23.00 = $26.91

Every dollar accumulated in earnings by StingRay Inc. the investors will pay $26.91.

1. Debt Total assets = Total Liabilities / Total assets

$493,000.00 / $926,000.00 = 0.53 or 53%

The creditors will use this percentage to determine the companies’ ability to take reductions from loses in the company. In StingRay Inc. the debt total assets is at 53% meaning the creditors finance this percent of assets in the company business.

1. Working Capital = Current Assets – Current Liabilities

$184,000.00 - $286,000.00 = -$272,000.00

In StingRay Inc. the comparison of short-term solvency is at $272,000.00. The company will have to determine if they can pay this difference on the dates that they are due which may result in borrowing money.