Question

Consider the financial statements for Nano Networks, Inc. The closing stock price for Nano Network was $56.67 (split adjusted) on December 31, 2005. On the basis of the financial data presented, compute the various financial ratios and make an informed analysis of Nano's financial health. . Debt ratio 2. Times-interest-earned ratio 3. Current ratio 4. Quick (acid-test) ratio 5. Inventory turnover ratio 6. Day's sales outstanding 7. Total assets turnover 8. Profit margin on sales 9. Return on total assets 10. Return on common equity II. Price-to-earnings ratio 12. Book value per share

Please show all steps and work. Any help will be appreciated and thank you for your time!

Answer 1

please note that for certain ratios which require average, I have considered the ending balance as finformation for 2003 was not provided.

debt ratio	total liabilities / total assets
	2005 ($000)	2004 ($000)
total liabilities	55663	14402
total assets	513378	36671
	0.11	0.39
times interest ratio	earnings before interest and tax / interest expense
	2005 ($000)	2004 ($000)
earnings before interest and tax	-14620	-32270
interest expenses	0	0
could not calculate as interest expense was not there
current ratio	current assets / current liabilities
	2005 ($000)	2004 ($000)
current assets	377833	28834
current liabilities	55663	14402
current ratio	6.79	2.00
quick ratio	cash+securities+receivables / current liabilities
	2005 ($000)	2004 ($000)
cash	158043	20098
securities	285116	0
receivables	23950	8056
quick assets	467109	28154
current liabilities	55663	14402
quick ratio	8.39	1.95
inventory turnover ratio	cost of goods sold / ending inventory
	2005 ($000)	2004 ($000)
cost of goods sold	45272	4416
ending inventory	0	0
could not calculate as inventory information was not there
days sales outstanding	(accounts receivables / sales)*365
	2005 ($000)	2004 ($000)
accounts receivables	24582	8056
less: allowance	-632	0
net accounts receivables	23950	8056
sales	102606	3807
days sales outstanding (in days)	85.20	772.38
total assets turnover	revenue(sales) / ending assets
	2005 ($000)	2004 ($000)
revenue	102606	3807
ending assets	513378	36671
asset turnover (in times)	0.20	0.10
profit margin on sales	(net income / sales)*100
	2005 ($000)	2004 ($000)
net income	-9034	-30971
revenue	102606	3807
profit margin on sales	-8.80%	-813.53%
return on total assets	earnings before interet and tax / ending assets
	2005 ($000)	2004 ($000)
earnings before interest and tax	-14620	-32270
ending assets	513378	36671
return on total assets	-0.03	-0.88
return on common equity	net income / shareholders equity
	2005 ($000)	2004 ($000)
net income	-9034	-30971
shareholders equity	457715	17065
return on common equity	-0.02	-1.81
price-to-earnings	market value per share / earnings per share
	2005
market price ($ per share)	56.67
earnings per share ($ per share)	-0.05
price-to-earnings ratio	-1133.4
book value per share	(total common stockholdes equity - preferred stock) / numer of common shares

could not calculate as full information was not there