FINANCIAL Class?

Brady Corporation is a leader in identification, safety, and material solutions. In 1998, th firm was hit hard by faltering foreign markets, so if embarked upon an aggressive campaign to redesign its cost structure. The firm believes this will help it to enhance future stockholder value. Brady follows the concept of Shareholder Value Enhancement (SVE), which is improved through increased sales, cost control, and effective use and control of assests.


c. On Brady's Income Statement, calculate Brady's TIE ratio for 1999, 2000, and 2001 and interpret your results.


d. Looking at Brady's Balance Sheets for the 2000 and 2001, calculate the current ration and comment on any changes in Brady's liquidity position.


e. Using both the income statements and balance sheets, calculate Brady's total assets turnover for 2000 and 2001, and interpret yiour results.

FINANCIAL Class?
C. In order to calculte your TIE (Times Interest Earned) Ratio you would do the following: Earnings before Interest and Taxes divided by Total Interest Payable on bonds and other contractual debt.





D. To calculate the current ratio: current assets divided by current liabilities





E. To calculate total asset turnover: Revenue divided by total assets