Essay About Stingray Inc. Ratio And Current Assets

Stingray Inc. Ratio’s
StingRay Inc. Ratio’sCurrent Ration = Current Assets / Current Liabilities $184,000.00 / $286,000.00 = 0.64:1For every dollar of current liabilities, StingRay Inc. has 64 cents of current assets. Quick Ratio = Current Assets – Inventory / Current Liabilities $184,000.00 – $10,000.00 – $6,000.00 – $8,000.00 / $286,000.00 = 0.56:1The 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. EPS Ratio= Profit – Preferred Dividends / Weighted average number of Common Shares$241,000.00 – $18,000.00 / $100,000.00 = $2.23The net earnings for each common share in StingRay Inc. is $2.23 per share.P.E. Ratio = Market price per share / Earnings per share$60.00 / $2.23.00 = $26.91Every dollar accumulated in earnings by StingRay Inc. the investors will pay $26.91. 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. Working Capital = Current Assets – Current Liabilities$184,000.00 – $286,000.00 = -$272,000.00In 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.