The purpose of this homework is to practice using Excel to calculate financial ratios. The...
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Accounting
The purpose of this homework is to practice using Excel to calculate financial ratios. The attached Excel file contains data from the SEC website for Harley-Davidson (HOG) for the 2017-2016 period. Three of the ratios have already been calculated to start the process. Please format all ratios to display two digits after the decimal point. When appropriate, format the ratio as a percentage, such as in 'profit margin'. Note that the data for the Income statement and Balance Sheet, necessary for calculating the ratios, are in separate worksheets. Just point to the appropriate 'cells' in these worksheets to build the formula in the 'Ratio Analysis' worksheet. What is the Internal Growth Rate & Sustainable Growth Rate?
Ratio Analysis for Harley Davidson (HOG)
Ratio
2017
2016
Current Ratio
1.23
1.35
Debt-to-equity
2.69
2.66
Cash Coverage
0.22
0.27
Inventory Turnover
9.46
10.58
Days' sales in inventory
38
34
Receivables Turnover
15.43
18.55
Days' sales in receivables
23
19
Total asset turnover
0.58
0.61
Profit Margin
9.24%
11.54%
Return on Asset
5.23%
7.00%
Return on Equity
Retention Ratio
0.52
0.64
Internal Growth Rate
Sustainable Growth Rate
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