Coach Inc financial and strategic analysis

 Recommendations

Epilogue

 Financial indicators

I. Short-term solvency, or liquidity, ratios

Current ratio=    Current assets

​Current Liabilites

Quick ratio=    Current assets– inventory

​     Current Liabilites

Cash ratio=     ____Cash_____        

​Current Liabilites

II. Long-term solvency, or financial leverage, ratios

Total debt ratio=    Total assets- Total equity

​                 Total assets

Debt-equity ratio= Total debt/Total equity

Times interest earned ratio=    ___EBIT___

​                             Interest

III. Asset utilization, or turnover, ratios

Inventory turnover= Cost of Goods Sold

​    Inventory

Receivables turnover= ______Sales______

​Accounts Receivable

IV. Profitability ratios

Profit Margin= Net income

​     Sales

ROE= Net income​Sales​Assets

            Sales​          Assets               Equity

V. Market value ratios

Price-earnings per share= Price per share

​    Earnings per share