Question

Use the attached financial statements to complete the ratios chart. Then complete the analysis chart based on the ratios chart.

BALANCE SHEET-USD Thousands Cash & equivalents Accounts receivable Taxes receivable Other receivables Inventories Prepaid expenses Total current assets Property & eqpt, net Intangible assets, net INCOME STATEMENT CASH FLOW STATEMENT $6,008 Revenues S2,260,502 Net income $157,392 92,729 (25,180) 10,586 16,457 (4,233) 19,865 Cost of sales 15,016 Labor expenses 67,518 Other op. costs 42,560 Gen. & admin. exps 57,666 Dep. & amor CRS 519,388 Depreciation & amortization expenses 777,595 Deferred income taxes 552,791 Impairment of assets & lease terminations 141,533 Stock-based compensation 92,729 Accounts receivable 208,633 Impairment of assets 935,045 Preopening costs 10,343 Other receivables 13,278 Inventories 24,065 Total expenses 39,399 Income from ops 125,918 Interest & other 189,382 Pre-tax income 2,107,657 Prepaid expenses (5,227) 9,034) 152,845 Other assets (6,379) Accounts payable 146,466 Income taxes receivable/payable (10,926) Other accrued expenses Other Total other assets Total assets Accounts payable Gift card liability Other Total current liabilities Deferred income taxes Deferred rent Deemed landlord financing liab, Long Other noncurrent liabilities 29,439 238,796 120,179) (1,654) (18,000) (140,433) 12,128 (4,391) 85,000 1,333,060 Tax prov. /(benefit) 50,984 Net income 163,951 183,016 S157,392 Cash provided by operating activities Additions to property&equipment Additions to intangible assets Investments in unconsolidated affiliates Cash used in investing activities Deemed landlord financing proceeds Deemed landlord financing payments Borrowings on credit facility Repayments on credit facility Proceeds from exercise of stock options Cash dividends paid Treasury stock purchases Cash used in financing activities Foreign currency translation adjustment Net change in cash & cash equivalents Cash & equivalents at start of period Cash & cash equivalents at end of period 397,951 57,216 74,761 108,627 70,975 9,036 (49,889) (122,975) (146,091) aid-in capita 799,862 Retained earnings Treasury stock Acc. other comp. loss Total equity Total liabilities & equity (1,532,864) 613,530 (47,831) 53,839 $1,333,060

Answer 1

	2018	TREND/JUMP/DROP
Current ratio	0.52	In 2018 the company is not even able to comply with current obligation which means company is less liquid and this liquidity is decreasing from last years.
quick	0.41	This ratio is also decreasing from last years which means that the company position is becoming worst. This show company has not a sound liquid position.
OCF	410,728	The cash from operating activities had increased from last years which means more cash in company.
FCF	(98,363	From last years cash outflow is lower which means lesser capital expenditure.
OCF +FCF	312,365	It also increased from last year which means a better cash flow postion in company
DIH	30.41	This ratio increased from last year which means that inventory in hand of company for longer period which indicate lesser sales.
DSO	3.2	This is lower from past years which means decrease in sales
TATO	1.69	From the last year this ratio also decreased which means the operating performance had been decreased.
DEBT	0.53	This means that company had almost half of total employed is from debt and which is stable
D-E	1.117	-
NPM	7%	From the last year the profits had been increased which means decrease in cost of sales
ROA	12%	From last years the performance of using the assets is better
ROE	26%	In the same way the performance of using the equity capital better than last years.

Current ratio = Current assets/current liabilities = 208,633/397,951

quick ratio = current assets - Inventories/current liabilities = 208,633-42,560/397,951

OCF= Total Revenue - capital expenditure

FCF= Net income + depreciation - Increase in working capital- capital expenditure =

DIH = Inventory/sales x 365 = 42,560/2260502 x 365

DSO = debtors/sales x 365 = 19,865/2260502 x 365

TATO = sales/ net assets = 2260502/1333060

DEBT = Total debt/ capital employed = 719,530/ 1333060

D_E = debt/ equity = 719,530/613,530 x 100

NPM = profit after tax/ sales x 100= 157,392/22652 x 100

ROA = Profit after tax/ net assets x 100= 157,392/1333060 x 100

ROE - Profit after tax/ equity x 100 = 157,392/613,530 x 100