Question

COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2013 2014 $ $ $ 1,684,996 941,341 743,655 625,656 13,795 131,794 503 2012 1,669,563 953,169 716,394 596,635 13,769 133,528 379 - Net sales Cost of sales Gross profit Selling, general and administrative expenses Net licensing income Income from operations Interest income, net Interest expense on note payable to related party (Note 22) Other non-operating expense Income before income tax Income tax expense (Note 11) Net income Net income (loss) attributable to non-controlling interest Net income attributable to Columbia Sportswear Company Earnings per share attributable to Columbia Sportswear Company (Note 17): Basic Diluted Weighted average shares outstanding (Note 17): Basic Diluted 2,100,590 1,145,639 954,951 763,063 6,956 198,844 1,004 (1,053) (274) 198,521 (56,662) 141,859 4,686 137,173 (871) 131,426 (37,823) 93,603 (738) 94,341 133,907 (34,048) 99,859 $ $ $ 99,859 $ $ 1.97 1.94 1.37 $ 1.36 1.48 1.46 69,807 70,681 68,756 69,434 67,680 68,264 See accompanying notes to consolidated financial statements

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Based on the information in these financial statements, compute the 2014 return on common stockholders’ equity, debt to assets ratio, and return on assets for each company. (Round answers to 1 decimal places, e.g. 15.2%.)

	Columbia Sportswear Company			VF Corporation
Return on common stockholders’ equity			%			%
Debt to assets			%			%
Return on assets			%			%

Compute the payout ratio for each company. (Round answers to 1 decimal places, e.g. 15.2%.)

		Columbia Sportswear Company			VF Corporation
Payout ratio			%			%

Answer 1

return on common stockholders equity	net income / average common stockholders equity
	Columbia Sportswear (amount in $000)	VF Corporation (amount in $000)
net income	141859	1047505
opening shareholders equity	1245418	6077038
closing shareholders equity	1343603	5630882
average stockholders equity	1294510.5	5853960
return on common stockholders equity	11.0%	17.9%
debt to assets	total liabilities / total assets
	Columbia Sportswear (amount in $000)	VF Corporation (amount in $000)
total liabilities	436975	4349258
total assets	1792209	9980140
debt to assets	24.4%	43.6%
return on assets	net income / average total assets
	Columbia Sportswear (amount in $000)	VF Corporation (amount in $000)
net income	141859	1047505
opening total assets	1605588	10315443
closing total assets	1792209	9980140
average total assets	1698898.5	10147791.5
return on assets	8.4%	10.3%
payout ratio	(total dividends / net income)*100
	Columbia Sportswear (amount in $000)	VF Corporation (amount in $000)
total dividend	39836	478933
net income	141859	1047505
payout ratio	28.1%	45.7%