Question

tio analysis for chipotle and cheesecake factory for 2018 and 2017. 1) LIQUIDITY: Current Ratio: Quick Ratio: 2) ASSET MANAGEMENT Total Asset Turnover: Average Collection Period: (3) DEBT MANAGEMENT: Total Debt to Total Assets: Times Interest Earned: (4) PROFITABILITY: Net profit Margin: Return on Assets: Return on Equity: Modified Du Pont Equation, FY 2018: Net Profit Margin Total Asset Turnover Equity Multiplier (5) MARKET VALUE RATIOS: PE Ratio: Market to Book Ratio: Chipotle 2018 2017 Revenue $4,864,985 $4,476,412 Food, beverage and packaging costs 1,600,760 1,535,428 Labor costs 1,326,079 1,205,992 Occupancy costs 347,123 327,132 Other operating costs 680,031 651,644 General and administrative expenses 375,460 296,388 Depreciation and amortization 201,979 163,348 Pre-opening costs 8,546 12,341 Impairment, closure costs and asset disposals 66,639 13,345 Total operating expenses 4,606,617 4,205,618 Income from operations 258,368 270,794 Interest and other income, net 10,068 4,949 Income before income taxes 268,436 275,743 Provision for income taxes (91,883) (99,490) Net income $176,553 $176,253 Earnings per share: Basic $6.35 $6.19 Diluted $6.31 $6.17 Weighted average common shares: outstanding Basic 27,823 28,491 Diluted 27,962 28,561 Balance Sheet Data: Total current assets $814,794 $629,535 Total assets $2,265,518 $2,045,692 Total current liabilities $449,990 $323,893 Total liabilities $824,179 $681,247 Total shareholders’ equity $1,441,339 $1,364,445 2018 2017 Revenues $2,332,331 $2,260,502 Costs and expenses: Cost of sales 532,880 519,388 Labor expenses 834,134 777,595 Other operating costs and expenses 566,825 552,791 General and administrative expenses 154,770 141,533 Depreciation and amortization expenses 95,976 92,729 Impairment of assets and lease terminations 17,861 10,343 Preopening costs 10,937 13,278 Total costs and expenses 2,213,383 2,107,657 Income from operations 118,948 152,845 Loss on investments in unconsolidated affliates (4,754) Interest and other expense, net (6,783) (5,900) Net income per share: Basic $2.19 $3.35 Diluted $2.14 $3.27 Weighted average shares outstanding: Basic 45,263 46,930 Diluted 46,215 48,152 Cash dividends declared per common share $1.24 $1.06 Balance Sheet Data (at end of period): Cash and cash equivalents $26,578 $6,008 Total assets 1,314,133 1,333,060 Total long-term debt and deemed landlord financing liability, including current portion 118,610 113,527 Total stockholders' equity 571,059 613,530.

Answer 1

1. Current Ratio = Current Assets/Current Liablities.

2. Quick Ratio = (Cash & Cash equivalents+Marketable Secureites+Account Receivalbes)/Current Liablities

3.Total Asset Turnover Ratio = (Total Sales)/{(Begning Asset+Ending Asset)/2}

4. Average Collection Period = (Average balance of AR/Total Net Sales)*No of days in the period

5. Total Debt to Total Asset = (Short Term Debt + Long Term Debt) / Total Assets

6. Net Profit Margin = Net Profit / Net Sales

7. Return on Assets = Net Income/Average Total Assets

8. Return on Equity = Net Income/Average Shareholders Equity

9. PE Ratio = Market Price of Share/Earning Per Share

10. Market to Book Ratio = Market Price per Share/Book Price per share.

Further, the figures given in the question are not very much clear, hence the question cannot be solved further. However, the formula to calculate the above parts have been mentioned above.