Gisela Mendoza & Duffee Dortch Asset Management Ratios Inventory Turnover Ratio = Sales/Inventory Days Sales Outstanding = Accts Receivable/Annual Sales Total Assets Turnover = Sales/Total Assets Liquidity Ratios Current ratio = Current Assets/Current Liabilities Quick ratio = Current Assets – Inventories Current Liabilities Debt Management Ratio Debt Ratio = Total Liabilities/Total Assets Times Interest Earned = Earnings Before Interest and Taxes Interest Charges Profitability Ratio Net Profit Margin = Net Income/Sales Return on Total Assets = Net Income/Total Assets Return on Common Equity = Net Income/Common Equity Market Value Ratio Price/Earnings Ratio = Stocks Price per Share Earnings per Share Market/book ratio = Market Price per Share Book Value per Share Choosing our investments We first looked at the all of the ratios and made sure all of them were above 1 except for the debt ratio. We looked at their overall profits and saw if they were increasing. Companies invested At&t Incorporated Nike Incorporated Netflix Incorporated Google Incorporated Pandora Media Incorporated Yahoo Incorporated Juniper Networks Incorporated Companies invested Coca-Cola Bottling Co. Consolidated Home depot Inc. Houston Wire and Cable Company Pool corporation Gibraltar Industries Incorporated Coach Incorporated Broadcom Corporated Companies Invested Apple Incorporated Ebay Incorporated Target Corporated Facebook Incorporated Priceline.com Incorporated Freeport-McMoRan Copper and Gold Inc.