RATIO | FORMULA | 2001 | 2002 | 2003 | INDUSTRY AVERAGE | COMMENTS | |
LIQUIDITY RATIO | CURRENT RATIO | CURRENT ASSET/CURRENT LIABILITY | 0.85 | 0.54 | 0.45 | 1.2 | Current ratio is falling year by year which mens liquidity of the company is very poor .we can see it from industry average also. |
QUICK RATIO | QUICK ASSET/CURRENT LIABILITIES | 0.68 | 0.31 | 0.24 | 0.6 | Quick Ratio is also falling year by year .It means company also does not have adequate quick asset to repay it's current liablities.As we compare from Industry In 2001 it was ok but after that it become poor. | |
TURNOVER MANAGEMENT RATIO | INVENTORY TURNOVER RATIO | COST OF GOOD SOLD/ AVERAGE INVENTORY | 18.6 | 12.9 | 16.9 OR 17 | 20.5 | Inventory turnover Ratio is also poor of the company of all three year if we compare with the industry. |
DAYS SALES OUTSTANDING RATIO | RECEVIABLE/AVG. SALE PER DAY | 43 | 29 | 18 | 45 | A company DSO ratio is below as we compare it from industry which company credit policy is too rigorous | |
PROFITABILITY RATIO | GROSS PROFIT/SALES | GROSS PROFIT/NET SALES | 0.18 | 0.25 | 0.20 | 0.45 | A Company's gross profit is also not up to mark as we compare with industry. They are earning less gross from there competitors |
NET PROFIT RATIO | NET PROFIT/NET SALES | 0.03 | 0.08 | 0.05 | 0.15 | A Company's Net profit is also not upto the mark as we compare it from industry they are earning less net profit from there competitors. | |
LONG TERM SOLVENCY RATIO | DEBT TO EQUITY RATIO | DEBT/EQUITY | 1.09 | 1.13 | 1.07 | 1.9 | A company's Debt to Equity is less as we compare with a industry .It is good to have a less debt . |
FIXED CHARGE COVERAGE RATIO | EBIT/INT, PAYABLE ON LOAN | 1.8 | 5.11 | 2.5 | 1 | A company have higher fixed charge coverage ratio as we compare with industry which is good because higher the ratio higher the Margin of safety. |
Exercise 2: Read the comparative balance sheets and the income statements of the firm 'Imaginary Computers...
10:34 Х Assignment 1.docx Question 3: Read the comparative balance sheet and the income statements of the firm 'Imaginary Computers Limited'. Use the techniques of financial statements analysis as explained in the chapter to do the following: Complete the missing values (titles, formulas and numerical values in the table below. Note that some ratios could not be calculated as relevant data are not available. 2 Comment on the financial strengths and weaknesses of the firm (trends of the ratios and...
Income Statements For the four years ended December 31, 2004 (in 000’s except per share amounts) 2004 2003 2002 2001 Net Revenues and Gains $27,500 $26,300 $25,100 $20,900 Expenses and Losses Cost of Sales 15,200 12,150 9,845 9,200 Operating Expenses 3,160 3,075 2,890 2,300 Other 4,570 3,966 3,146 2,214 Taxes 1,690 2,671 3,318 2,515 Net Income $2,880 $4,438 $5,901 $4,671 Common Shares Outstanding 3,000 3,000 3,000 3,000 -perform ratio analysis on the four year’s income -Calculate standard profitability ratios (Return...
Below are the comparative balance sheets for 2016 and 2017 as well as the income statement for 2017 for Dynamite Sales company. 2017 2016 Income statement Sales revenue $845,000 Cost of goods sold 520,000 Gross profit 325,000 Operating expenses 110,000 Pretax income 215,000 Income tax 47,300 Net income $167,700 Balance sheet Cash $7,200 $5,620 Accounts receivable (net) 39,400 36,000 Merchandise inventory 14,000 18,000 Prepaid-expenses 500 400 Fixed assets (net) 210,000 180,000 $271,100 $240,020 Accounts payable $19,000 $18,000 Income taxes payable...
Determine the Value of the firm PNC using Discount
CashFlow.
Table 1. Balance Sheets, PNC and Industry ($ in Thousands) PNC Benchmark Companies % of Assets 2002 2003 2004 $346 $507 $2,017 $3,622 $6,492 $14,512 $21,004 Cash ST securities Accounts receivable Inventories Current assets Net fixed assets Total assets % of Sales $478 $700 $2,786 $5,002 $8,966 $15,208 $24,174 $625 $625 $3,852 $6,023 $11,125 $18,098 $29,223 2.85% 1.00% 0.01% 5.00% 9.00% 15.01% 20.10% 0.01% 14.24% 25.64% 42.74% 57.26% 100.00% 35.11%...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 $ 90 275 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 375 $ 740 2,000 $2,740 2018 $ 75 300 350 $ 725 1,490 $2,215 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $ 150 75 140 $ 365 450 1,225 700 $2,740...
The financial statements of Green Corporation appear below: Green Corporation Comparative Balance Sheets December 31, 2018 - 19 —————————————————————————————————— Assets 2019 2018 Cash $150,000 $ 300,000 Short-term investments 150,000 450,000 Accounts receivable (net) 300,000 225,000 Inventory 450,000 525,000 Property, plant and equipment (net) 1,950,000 2,250,000 Total assets $3,000,000 $3,750,000 Liabilities and stockholders' equity Accounts payable $150,000 $ 225,000 Short-term notes payable 300,000 675,000 Bonds payable 600,000 1,200,000 Common stock 1,125,000 1,125,000 Retained earnings 825,000 525,000 Total liabilities and stockholders' equity ...
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solve step by step with formulas
A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's financial position using the DuPont equation. The firm has no lease payments but has a $2 million sinking fund payment on its debt. The most recent industry average ratios, and Ferri's financial statements, are as follows: INDUSTRY AVERAGE RATIOS 3% Current ratio Debt/total assets Times interest earned EBITDA coverage Sales/inventory Days sales outstandinge Sales/fixed assets 30% Sales/total...
Use the information from the Income Statement and Balance Sheet to construct the ratios and answer the questions below. Downloadable Financial statements HW 4 SXP 19.docxPreview the document hw3 ratios.jpg Barry Computers Income statement DEC 31, 2016 Sales 1,607,500 GOGS 1,392,500 Gross Profit 215,000 SG&A 145,000 EBIT 70,000 Interest Expenses 24,500 EBT 45,500 TX (40%) 18,200 NI 27,300 Barry Computers Balance Sheet DEC 31, 2016 Cash 77,500 Accounts Payable 129,000 Accounts receivables 336,000 Accruals 117,000 Inventory 241,500 Notes Payable 84,000...
Forecasted Statements and Ratios Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2018, is shown here (millions of dollars): 18.0 Cash Receivables Inventories Total current assets Net fixed assets $ 3.5 Accounts payable 26.0 Notes payable 58.0 Line of credit $87.5 Accruals 35.0 Total...
Use the attached Income Statement and Balance Sheet to compute
the required financial ratios for Seward Inc. and compare to the
industry averages. After that, write a brief summary as to what
each ratio is measuring and how Seward compares to the industry.
For example, you may find that Seward's Inventory Turnover is not
as high as the industry average, so they are either not managing
their inventories or may be experiencing a decrease in sales.
Seward Industries a. Compute...