Module 1 Practice Assignment - Financial Ratios

Financial Ratios Name Institution Course and Code Professor Date Financial Ratios The following are calculations of financial ratios I did based on the 2019 annual report of Under Armour. 1. Current Ratio “Current Ratio (CR) = Current Assets (CA) divides by Current Liabilities (CL)” = $4,843,531/$2,693,444 = 1.79827 Note: The CR is crucial since it determines if a firm can fully settle its short-term debts. 2. Accounts Receivable Turnover (ART) “ART = Net Revenue/Average Accounts Receivable” = $5,267,132/$708,714 = 7.43196 Note: The ART helps a company to identify whether it’s collecting payments well and managing its credit. Moreover, this ratio can be used in forecasting ca...