Financial Ratio Analysis Problems

  1. The following two questions pertain to the financial statements for DuPont that are available here in a downloadable Excel workbook.

    1. Calculate the following ratios for DuPont for 1997 and 1996:

      1. current ratio
      2. inventory turnover
      3. total asset turnover
      4. operating profit margin
      5. net profit margin
      6. debt to equity

    2. Evaluate the change in the return on assets from 1996 to 1997 for DuPont using the DuPont system.

  2. The following two problems are based on Intel's 1998 financial statements, available here in a downloadable Excel workbook.

    1. Calculate the following ratios for Intel for 1998:
      1. Fixed asset turnover
      2. Operating profit margin
      3. Basic earning power

    2. Has Intel's interest coverage ratio improved from 1996? Explain.

Solutions