Homework Answers
Ans -> b.
In the given exhibits 2.3 and 2.3, since we are comparing similar(logistics) companies of almost similar sizes, we can safely say that the bigger PPE turnover, the better. This is because higher PPE ratio indicates higher revenue as compared to fixed assets held by a company.
A very high working capital turnover for a company may indicate that the business does not have enough capital to support its revenue growth in the future and may become insolvent.
A high Capex% indicates a slowdown in the revenue growth of the company as compared to its capital expenditure.
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3. In Exhibit 2.2 and 2.3 (page 35-36), for Asset Efficiency Ratios, there are several ratios...
Use Exhibit 2.1 and estimate FEDEX 2016 Total Sale via the top down approach & the...
Use Exhibit 2.1 and estimate FEDEX 2016 Total Sale via the top
down approach & the following assumptions:
I. Only 2 companies in this industry: FEDEX & UPS
ii. The industry 2016 projected annual growth rate is assumed to
the geometric average of 2015, 2014, 2013 and 2012 industry annual
growth rate.
iii. FEDEX plan to have 0.5% higher market share in 2016 compare
to 2015 market share (i.e UPS will have lower market share in
2016)
EXHIBIT 2.1 Revenues...
Computing Asset Ratios The following information relates to Nicke Inc. Total Fixed Total Net $ millions...
Computing Asset Ratios The following information relates to Nicke Inc. Total Fixed Total Net $ millions Assets Assets Revenue Income Fiscal Year 2016 $3,168 $19,256 $29,138 $3,384 Fiscal Year 2015 2,981 21,381 27,541 2,946 Fiscal Year 2014 2,551 16,735 Nicke's fiscal years 2016, 2015, and 2014, end on May 31, 2016, 2015, and 2014, respectively. Required a. Compute the asset turnover ratio for fiscal years 2016 and 2015. b. Compute the return on assets ratio for fiscal years 2016 and...
Computing Asset Ratios The following information relates to Nicke Inc. Total Fixed Total Net $ millions...
Computing Asset Ratios The following information relates to Nicke Inc. Total Fixed Total Net $ millions Assets Assets Revenue Income Fiscal Year 2016 $4,224 $25,675 $38,851 $4,512 Fiscal Year 2015 3,613 25,916 36,721 3,928 Fiscal Year 2014 3,401 22,313 Nicke's fiscal years 2016, 2015, and 2014, end on May 31, 2016, 2015, and 2014, respectively. Required a. Compute the asset turnover ratio for fiscal years 2016 and 2015. b. Compute the return on assets ratio for fiscal years 2016 and...
6 How well is Costco performing from a financial perspective? Use the data in case Exhibit...
6 How well is Costco performing from a financial perspective? Use the data in case Exhibit 1 to support your answer. Use the financial ratios presented on pp. 231-232 of the text to help you diagnose Costco’s financial performance. Some answers will be rounded up. In addition to the financial ratios, you will also need to calculate compound average growth rates (CAGR) for certain financial measures. The formula for calculating CAGR (in percentage terms) is as follows: CAGR %...
You are an analyst fir a mutual fund that wanrs to include a home inprovement store...
You
are an analyst fir a mutual fund that wanrs to include a home
inprovement store in its portfolio. Given that Home Depot and Lowes
are the dominant olayers in the industry, which firm would you
recommend buying? Explain
C D F N M N O P Q R 5 T 1 LOWE's HOME DEPOT 2010-01 2001-01 2012-01 2011-01 2014-01 2005-2006-01 2017-01 220 48.835 50,208 50 52 54 56.223 52 2010-2011-01 2012-01 2013-08 2014-01 2015-2016-01 2017-01 3.112 3.560 277 73...
I need help filling in the green spaces for both the Income Statement and Balance Sheet....
I need help filling in the green spaces for both the Income
Statement and Balance Sheet. Below is Exhibit 1 (Financial and
Operating Data for Cosco).
TIP: use n = 3 for the CAGR calculation.
Please explain using an Excel spreadsheet,
formulas, and a step-by-step analysis/explanation.
Any
help would be appreciated!
EXHIBIT 1
Please use these financial ratio equations:
Liquity Ratios:
544 53 EXHIBIT 1 Selected Financial and Operating Data for Costco Wholesale Corp., Fiscal Years 2000, 2005, 2011, and...
Nucor Corporation produces steel and steel products at its eight mills and is a major recycler...
Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following data relate to Nucor for four years. 2011 Nucor Corporation ($ in millions) Total assets Common stockholders' equity Total debt Sales Net income Interest expense Income tax rate 2011 $14,570.4 7,706.6 4,282.0 2012 $14, 152.1 7,885.4 3,660.1 19,429.3 593.1 162.4 0.37 2013 $15, 203.3 7,910. 3 4,409.9 19,052.0 585.5 146.9 0.37 2014 $15,615.9 8 ,075.1 4,584.4 21,105.1 815.8 169.3...
EXHIBIT 5 Fitbit, Inc., Consolidated Statements of Operations, 2014-First Quarter 2017 (in thousands) First Quarter 2017...
EXHIBIT 5 Fitbit, Inc., Consolidated Statements of Operations, 2014-First Quarter 2017 (in thousands) First Quarter 2017 2016 2015 2014 Revenue $298,942 Cost of revenue 180,643 $2,169,461 1.323,557 845,884 $1,857,998 956,935 901,063 $745,433 387.776 357,657 118,299 Gross profit Operating expenses: Research and development 87,785 320,191 150,035 54,167 Sales and marketing 91,174 332,741 112,005 491,255 146,903 General and administrative 30,746 77,793 33,556 Change in contingent consideration Total operating expenses 209,678 199,728 Operating income 958,349 (112,465) 3,156 (91,379) 1,096 157,929 Interest income (expense),...
Complete Assurance of Learning Exercise 4C: Financial Ratio Analysis for PepsiCo. Financial Ratios for PepsiCo (2012)...
Complete Assurance of Learning Exercise 4C: Financial Ratio
Analysis for PepsiCo.
Financial Ratios for PepsiCo (2012) use the below information to
find
Liquidity Ratios:
- Current ratio:
- Quick ratio:
Leverage Ratios:
- Debt-to-total-assets ratio:
- Debt-to-equity ratio:
- Long-term debt-to-equity ratio:
- Times-earned-interest ratio: Profits before interest and
taxes/Total interest charges
Activity Ratios:
- Inventory turnover:
- Fixed assets turnover:
- Total assets turnover:
- Accounts receivable turnover:
Profitability Ratios:
- Gross profit margin:
- Operating profit margin:
-...
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...
Use Exhibit 2.1 and estimate FEDEX 2016 Total Sale via the top
down approach & the following assumptions:
I. Only 2 companies in this industry: FEDEX & UPS
ii. The industry 2016 projected annual growth rate is assumed to
the geometric average of 2015, 2014, 2013 and 2012 industry annual
growth rate.
iii. FEDEX plan to have 0.5% higher market share in 2016 compare
to 2015 market share (i.e UPS will have lower market share in
2016)
EXHIBIT 2.1 Revenues...
Computing Asset Ratios The following information relates to Nicke Inc. Total Fixed Total Net $ millions Assets Assets Revenue Income Fiscal Year 2016 $3,168 $19,256 $29,138 $3,384 Fiscal Year 2015 2,981 21,381 27,541 2,946 Fiscal Year 2014 2,551 16,735 Nicke's fiscal years 2016, 2015, and 2014, end on May 31, 2016, 2015, and 2014, respectively. Required a. Compute the asset turnover ratio for fiscal years 2016 and 2015. b. Compute the return on assets ratio for fiscal years 2016 and...
Computing Asset Ratios The following information relates to Nicke Inc. Total Fixed Total Net $ millions Assets Assets Revenue Income Fiscal Year 2016 $4,224 $25,675 $38,851 $4,512 Fiscal Year 2015 3,613 25,916 36,721 3,928 Fiscal Year 2014 3,401 22,313 Nicke's fiscal years 2016, 2015, and 2014, end on May 31, 2016, 2015, and 2014, respectively. Required a. Compute the asset turnover ratio for fiscal years 2016 and 2015. b. Compute the return on assets ratio for fiscal years 2016 and...
You
are an analyst fir a mutual fund that wanrs to include a home
inprovement store in its portfolio. Given that Home Depot and Lowes
are the dominant olayers in the industry, which firm would you
recommend buying? Explain
C D F N M N O P Q R 5 T 1 LOWE's HOME DEPOT 2010-01 2001-01 2012-01 2011-01 2014-01 2005-2006-01 2017-01 220 48.835 50,208 50 52 54 56.223 52 2010-2011-01 2012-01 2013-08 2014-01 2015-2016-01 2017-01 3.112 3.560 277 73...
I need help filling in the green spaces for both the Income
Statement and Balance Sheet. Below is Exhibit 1 (Financial and
Operating Data for Cosco).
TIP: use n = 3 for the CAGR calculation.
Please explain using an Excel spreadsheet,
formulas, and a step-by-step analysis/explanation.
Any
help would be appreciated!
EXHIBIT 1
Please use these financial ratio equations:
Liquity Ratios:
544 53 EXHIBIT 1 Selected Financial and Operating Data for Costco Wholesale Corp., Fiscal Years 2000, 2005, 2011, and...
Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following data relate to Nucor for four years. 2011 Nucor Corporation ($ in millions) Total assets Common stockholders' equity Total debt Sales Net income Interest expense Income tax rate 2011 $14,570.4 7,706.6 4,282.0 2012 $14, 152.1 7,885.4 3,660.1 19,429.3 593.1 162.4 0.37 2013 $15, 203.3 7,910. 3 4,409.9 19,052.0 585.5 146.9 0.37 2014 $15,615.9 8 ,075.1 4,584.4 21,105.1 815.8 169.3...
EXHIBIT 5 Fitbit, Inc., Consolidated Statements of Operations, 2014-First Quarter 2017 (in thousands) First Quarter 2017 2016 2015 2014 Revenue $298,942 Cost of revenue 180,643 $2,169,461 1.323,557 845,884 $1,857,998 956,935 901,063 $745,433 387.776 357,657 118,299 Gross profit Operating expenses: Research and development 87,785 320,191 150,035 54,167 Sales and marketing 91,174 332,741 112,005 491,255 146,903 General and administrative 30,746 77,793 33,556 Change in contingent consideration Total operating expenses 209,678 199,728 Operating income 958,349 (112,465) 3,156 (91,379) 1,096 157,929 Interest income (expense),...
Complete Assurance of Learning Exercise 4C: Financial Ratio
Analysis for PepsiCo.
Financial Ratios for PepsiCo (2012) use the below information to
find
Liquidity Ratios:
- Current ratio:
- Quick ratio:
Leverage Ratios:
- Debt-to-total-assets ratio:
- Debt-to-equity ratio:
- Long-term debt-to-equity ratio:
- Times-earned-interest ratio: Profits before interest and
taxes/Total interest charges
Activity Ratios:
- Inventory turnover:
- Fixed assets turnover:
- Total assets turnover:
- Accounts receivable turnover:
Profitability Ratios:
- Gross profit margin:
- Operating profit margin:
-...
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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