An analyst collects the following financial information to assess the credit quality of Company Y and Company Z, relative to each other and their industry average. Company Z 2 250 000 Company Y 550 000 300 000 40 000 1 000 000 4 000 000 Goodwill 500 000 Present value of operating leases 300 000 Net pension liability 0 Earnings before interest and tax Funds from operations Interest expense Total debt Total capital 850 000 160 000 2 500 000 6 500 000 0 200 000 Industry average 1 400 000 600 000 100 000 2 400 000 6 000 000 200 000 200 000 0 Calculate adjusted financial ratios for both companies and the industry, and evaluate the relative creditworthiness of Company Y and Company Z. (4)
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- Assume the following information is given:Income statementNet sales sh. 200,000Operating income 10,000 Balance sheetCurrent assets 95,000Total assets 150,000 Current liabilities 80,000Total liabilities 125,000Retained earnings 25,000 The market value of equity is sh. 300,000Required:Evaluate the credit worthiness of the borrower using Altman ZFrom the following information of Axis Limited compute the Replacement Cost Value / Net Substantial Value Liabilities Equity Share Capital Preference Share Capital Reserves and Surplus Adjustment Long-term Debt Short-term Debt Creditors Amount (Mn$) 2000 1100 800 1400 800 1700 Assets 1100 Debtors 8,900 Fixed Assets Inventories Cash and Bank Balance Amount (Mn$) 4100 2350 1150 1300 8,900please help me answeer the following given Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $3,780,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industr, averages and Creek's recent financial statements, evaluate and recommend appropriate action on the loan request. Industry averages Creek Enterprises Income Statement: Debt ratio 0 50 Times interest earned ratio 7.42 Fixed-payment coverage ratio 2.03 Creek Enterprises Balance Sheet: Creek Enterprises's debt ratio is _____ (Round to two decimal places.) Creek Enterprises's times interest earned ratio is ______ (Round to two decimal places.) Creek Enterprises's fixed-payment coverage ratio is. ______ (Round to two decimal places.) Complete the following summary of ratios and compare Creek Enterprises's ratios vs. the industry average: (Round to two decimal places.) Creek Debt ratio Industry 0.50 Times…
- MANCOSA POSTGRADUATE DIPLOMA IN PRORCT MANAGEMENT QUESTION REQUIRED Use the information provided below to calculate the following ratios. Where applicable, und e answers to two decimal places 111 Gross profe margin 312 Operating profit margin 31.3 invertory turnover period 31.4 Trade recelvatles peried 31.5 Trade payables period 31 316 Current ratio 3.1.7 Acid test ratio 3.18 Return on capital employed 32 Comment on the control ef debtors by Saturn imited Sugpest TWO 2) ways in which Saturn Limited can improve its operating profit margin. 33 INFORMATION Excerpts of financial data of Satum Limited for 2019 are as follows: STATEMENT OF COMPREHINSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 2600 00 Cost of sales Gros proft Operating profit 1400 000 600 000 40 000 S60 00 Interest expense Proft before tas Tan N STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2019 2008 ASSETS Non-current assets Inventories Accounts recelvable 780000 500 000 240 000 120 000 45L000 1250 p0 EQUITY AND…The following is selected financial data from Block Industries: How much does Block Industries have in current liabilities? A. $19,800 B. $18,300 C. $12,300 D. $25,800Consider the Following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1200 7% %24 1100 8% Fixed rate $ 1400 9% 1400 7% Non earning $ 3200 %24 1500 Equity 1800 Total $ 5800 $ 5800 What is the Net Interest Income (NII)
- Total debt 1 000 000 5 000 000 Annual interest 100 000 500 000 Total sales 25 000 000 25 000 000 EBIT 6 250 000 6 250 000 Earnings available for common stockholders 3 690 000 3 450 000 Calculate the following debt and coverage ratios for the two companies Discuss their financial risk and ability to cover the costs in relation to each other Debt ratio Times interest earned ratio Calculate the following profitability ratios for the two companies Discuss their profitability relative to one anothConsider the Föllowing balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1900 7% %$4 1300 9% Fixed rate $ 500 9% %$4 1900 6% Non earning $ 2700 %$4 800 Equity 1100 Total $ 5100 $ 5100 What is the Net Interest Income (NII)Calculate the proprietary ratio from the following information: Fixed Assets 12,80,000 Current Assets 7,20,000 8% Debentures 5,60,000 10% Mortgage loan 3,30,000 Bank overdraft2,20,000 Trade payabletrade 1,90,000
- Required:a. Calculate the following ratios for Sweets plc for 2021 and 2020, showing the formulas and workings:4- Net profit margin5- Asset turnover6- Stock holding days7- Debtors collection period8- Current ratio9- Gearing ratio10- Interest coverUse the financial ratios of company A and company B to answer the questions below. Company A Company B Yr t+1 Year t Yr t+1 Year t Current ratio 0.55 0.59 0.56 0.55 Accounts receivable turnover 6.22 6.25 5.06 4.87 Debt to total assets 40.5% 40% 67.8% 65.9% Times interest earned 8.80 30.6 5.97 6.33 Free cash flows (in millions) ($3,819) $3,173 $168 $550 Return on stockholders’equity 7.7% 7.7% 26.6% 23.3% Return on assets 4.3% 4.3% 8.9% 7.9% Profit margin…performance of National Company. Comment on overall financial position and financial health of the business. Identify problems and recommend possible solutions, if historical ratios of company are: Ratios201720182019 Current Ratio1.41.51.6 Acid Test Ratio0.850.740.63 Asset Turnover Ratio4 times3.22.5 Inventory Turnover Ratio6 times5.55 Collection Period6 times5.55 Account payable turnover8 times10 times12 times Total Debt to equity Ratio1.381.611.91 Interest cover543.5 Gross Profit Ratio20%22%23% Net Profit Margin8.5%6.7%3.8% Return on Equity20%21%24% Sales Growth Rate8%5%2% P/E Ratio1098 Fixed Asset Utilization Ratio21.71.4