Computing and Interpreting Financial Statement Ratios Following are selected ratios of Colgate-Palmolive for 2015 and 2014....
Computing and Interpreting Financial Statement Ratios
Following are selected ratios of Colgate-Palmolive for 2015 and 2014.
| Return on Assets(ROA) Component | 2015 | 2014 |
|---|---|---|
| Profitability (Net income/Sales) | 8.50% | 12.50% |
| Productivity (Sales/Average assets) | 1.42 | 1.29 |
a. Was the company profitable in 2015? What evidence do you have of
this?
No, Colgate-Palmolive was not profitable as evidenced by its decrease in its net profit margin.
Yes, Colgate-Palmolive was profitable as evidenced by its positive net profit margin.
Mark 1.00 out of 1.00
b. Is the change in productivity (asset turnover) a positive
development?
No, the increase indicates more operating assets were needed to generate the same level of sales as the prior year.
Yes, the increase indicates that operating assets generated a higher level of sales than the prior year.
Mark 1.00 out of 1.00
c. Compute the company's ROA for 2015.
Round answer to one decimal place (ex: 0.2345 = 23.5%).
Answer
% ?
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Computing and Interpreting Financial Statement
Ratios
Following are selected ratios of Colgate-Palmolive for 2015 and
2014....
Retained earnings 2015: $19,638 2014: $19,165 During 2015, Colgate-Palmolive reported net income of $2,239 million. a....
Retained earnings 2015: $19,638 2014: $19,165 During 2015, Colgate-Palmolive reported net income of $2,239 million. a. What amount of dividends, if any, did Colgate-Palmolive pay to its stockholders in 2015?
Applying Financial Statement Relations to Compute Dividends Assume Colgate-Palmolive reports the following dollar balances in its...
Applying Financial Statement Relations to Compute Dividends Assume Colgate-Palmolive reports the following dollar balances in its retained earnings account. ($ millions) 2015 2014 Retained earnings $19,638 $19,165 During 2015, Colgate-Palmolive reported net income of $2,239 million. a. What amount of dividends, if any, did Colgate-Palmolive pay to its stockholders in 2015? $Answer million b. What percent of its net income did Colgate-Palmolive pay out as dividends in 2015? Round to the nearest whole percentage. Answer%
LO3, 6 Colgate-Palmolive (CL) E10-37. Analyzing and Interpreting Income Tax Disclosures Colgate-Palmolive reports t...
LO3, 6 Colgate-Palmolive (CL) E10-37. Analyzing and Interpreting Income Tax Disclosures Colgate-Palmolive reports the following income tax footnote disclosure in its 10-K report (266) Deferred Tax Balances at December 31 ($ millions) 2015 2014 Deferred tax liabilities Goodwill and intangible assets.... $ (458) $ (497) Property, plant and equipment .. (380) (380) Other ... (150) (988) (1143) Deferred tax assets Pension and other retiree benefits ... 541638 Tax loss and tax credit carryforwards. 30 33 Accrued liabilities...... 235 276 Stock-based...
Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows....
Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,349 $2,440 Net income 2,269 2,307 Total assets 14,315 14,127 $15,941 Equity 2,875 3,091 3,091 Net operating profit after tax (NOA) 8,426 8,989 9,585 Treasury stock 17,084 15,791 14,006 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to...
5. Calculate the 2015 financial ratios for Phocbe Corporation rounded to the nearest tenth and put...
5. Calculate the 2015 financial ratios for Phocbe Corporation rounded to the nearest tenth and put a checkmark in tbe row in which Phorbe's ratios are better than the industry average: Ratio Gross Profit Margin Net Profit Margin Current Ratio Inventory Turnover Receivables Turnover Phoebe Corporation (2015) Industry Averages Phocbe is Better 55.0% 27.5% 3.3 % % 15.5 8.5 Select Financial Ratios What It Measures Eficiency of operations and product pricing Lisiency afher all expenses are considered Short-run debt-paying ability...
E13-2 Computing and Interpreting Profitability Ratios (LO 13-4, LO 13-5) The average price of a gallon...
E13-2 Computing and Interpreting Profitability Ratios (LO 13-4, LO 13-5) The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let's see whether these changes are reflected in the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions). 2015 2014 Revenues $215 $234 Cost of Purchased Crude Oil and Products 120 125 Other Operating costs 56 Income before Income Tax Expense Income...
Profitability ratios reflect the net result of all the firm's erect. B policies and operating decisions....
Profitability ratios reflect the net result of all the firm's erect. B policies and operating decisions. The profitability ratios include the: (1) Operating profit margin, (2) Net profit margin, (3) Return on total assets (ROA), (4) Basic earning power (BEP) ratio, and (5) Return on common equity (ROE). The operating profit margin indicates what percentage of sales remain after et B are accounted for. It is a measure of the firm's operating effidency. Its equation is: B. It measures the...
Please take a look below at the two companies' financial ratios. Identify the industries these two...
Please take a look below at the two companies' financial ratios. Identify the industries these two companies operate in. Please include good quality analysis and arguments (e.g. this ratio indicates that... and that ratio indicates the other,... and taken together these ratios indicate that.... (and so forth)) : Company A Company B P/E Ratio: 30 Price/Sales: 6 Price/Book Value of Equity: 7.5 Profit Margin: 20% Operating Margin: 25% Return on Assets (ROA): 6% Return On Equity (ROE): 25% Current Ratio:...
The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015)....
The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let's see whether these changes are reflected in the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions) $245 $258 125 Revenues Cost of Purchased Crude Oil and Products Other Operating costs Income before Income Tax Expense Income Tax Expense Net Income Required: 1. Compute the gross profit percentage for each year....
Part 1: Ratio Analysis calculate the following ratios Part 2: Perform a vertical analysis of statement...
Part 1: Ratio Analysis calculate the following ratios
Part 2: Perform a vertical analysis of statement of financial
position & Income statement
Part 3: Perform a Horizontal Analysis of statement of
Financial Position for 2015 and 2014 & Income statement for
2015
Instructions: 1. On pages three and four, you will find condensed statement of financial position and income statement data for Waterloo Corporation. 2. Use the same information to answer all the three parts. 3. Part 1: a. In...
LO3, 6 Colgate-Palmolive (CL) E10-37. Analyzing and Interpreting Income Tax Disclosures Colgate-Palmolive reports the following income tax footnote disclosure in its 10-K report (266) Deferred Tax Balances at December 31 ($ millions) 2015 2014 Deferred tax liabilities Goodwill and intangible assets.... $ (458) $ (497) Property, plant and equipment .. (380) (380) Other ... (150) (988) (1143) Deferred tax assets Pension and other retiree benefits ... 541638 Tax loss and tax credit carryforwards. 30 33 Accrued liabilities...... 235 276 Stock-based...
Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,349 $2,440 Net income 2,269 2,307 Total assets 14,315 14,127 $15,941 Equity 2,875 3,091 3,091 Net operating profit after tax (NOA) 8,426 8,989 9,585 Treasury stock 17,084 15,791 14,006 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to...
5. Calculate the 2015 financial ratios for Phocbe Corporation rounded to the nearest tenth and put a checkmark in tbe row in which Phorbe's ratios are better than the industry average: Ratio Gross Profit Margin Net Profit Margin Current Ratio Inventory Turnover Receivables Turnover Phoebe Corporation (2015) Industry Averages Phocbe is Better 55.0% 27.5% 3.3 % % 15.5 8.5 Select Financial Ratios What It Measures Eficiency of operations and product pricing Lisiency afher all expenses are considered Short-run debt-paying ability...
E13-2 Computing and Interpreting Profitability Ratios (LO 13-4, LO 13-5) The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let's see whether these changes are reflected in the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions). 2015 2014 Revenues $215 $234 Cost of Purchased Crude Oil and Products 120 125 Other Operating costs 56 Income before Income Tax Expense Income...
Profitability ratios reflect the net result of all the firm's erect. B policies and operating decisions. The profitability ratios include the: (1) Operating profit margin, (2) Net profit margin, (3) Return on total assets (ROA), (4) Basic earning power (BEP) ratio, and (5) Return on common equity (ROE). The operating profit margin indicates what percentage of sales remain after et B are accounted for. It is a measure of the firm's operating effidency. Its equation is: B. It measures the...
The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let's see whether these changes are reflected in the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions) $245 $258 125 Revenues Cost of Purchased Crude Oil and Products Other Operating costs Income before Income Tax Expense Income Tax Expense Net Income Required: 1. Compute the gross profit percentage for each year....
Part 1: Ratio Analysis calculate the following ratios
Part 2: Perform a vertical analysis of statement of financial
position & Income statement
Part 3: Perform a Horizontal Analysis of statement of
Financial Position for 2015 and 2014 & Income statement for
2015
Instructions: 1. On pages three and four, you will find condensed statement of financial position and income statement data for Waterloo Corporation. 2. Use the same information to answer all the three parts. 3. Part 1: a. In...
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