Assessment should use comparative company and industry data to determine the following:
- Liquidity Ratios
- Current Ratio
- Quick Ratio
- Working Capital
- Interest Coverage
- Asset Management Ratios
- Accounts Receivable Turnover
- Average Collection Ratio
- Inventory Turnover
- Asset Turnover
- Debt Management Ratios
- Debt to Total Assets
- Debt to Stockholders’ Equity
- Times Interest Earned
- Interest Coverage Ratio
- Profitability Ratios
- Gross and Net Profit Ratios
- Return on Sales
- Rate of Return on Total Assets
- Return on Equity, Earnings Per Share
- Price/Earnings Ratio
- Discontinued Operations
- Calculation of Income or Loss, Net of Income Tax
- Effect of Ratios on Management Decisions
- Asset Turnover
- Reporting Gain or Loss on Disposal
- Adjustments for Obligations and Contingent Liabilities