accounting ratios in a financial report.?

Question

where would i be able to find the accounting ratios for a company in there anual report. like under what section?

Answer 1

It is not mandatory to report financial ratios in an annual report, so you may not find them. If they are ever discussed, it'd probably be just one or two mentioned in the chairman's report or under Financial Highlights.

Answer 2

If you have a company's financial statements available, then you can calculate them yourself. Some common ratios are:

Gross profit margin: (Net sales - Cost of Sales) / Net sales
Operating margin: Operating earnings / Net sales
Current ratio: current assets / current liabilities
Asset turnover: Sales / assets
Debt ratio: Total liabilities / total assets
Return on equity: Net income / total equity
PE ratio: Price / EPS (earnings per share)

Answer 3

This sounds like a homework problem. Financial statements summarize all of the financial transactions that took place for a specified period of time. The aim of financial statements is to show the user of said statements the condition of the business.