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Calculate the Current Ratio, Debt Ratio, Return on Assets (ROA) and Return on Equity (ROE). For the ROA and ROE, you should use the average total assets and the average total equity in your calculations. (The average is the total across two years divided by two). Calculate these values for each of 2011-2014. Interpret your calculations: what does this information mean? How is the company doing?

Calculate the Current Ratio, Debt Ratio, Return on Assets (ROA) and Return on Equity (ROE). For the ROA and ROE, you should use the average total assets and the average total equity in your calculations. (The average is the total across two years divided by two). Calculate these values for each of 2011-2014. Interpret your calculations: what does this information mean? How is the company doing?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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  1. Calculate the Current Ratio, Debt Ratio, Return on Assets (ROA) and Return on Equity (ROE). For the ROA and ROE, you should use the average total assets and the average total equity in your calculations.  (The average is the total across two years divided by two).  Calculate these values for each of 2011-2014.  Interpret your calculations: what does this information mean?  How is the company doing?
Appendix A3: Canadian Motorbikes Industry Averages Current Ratio Cash Ratio Inventory Turnover (days) A/R Turnover (days) A/P Turnover (days) Cash Conversion Cycle Fixed Assets Turnover Total Assets Turnover Debt Ratio Times Interest Earned Gross Profit Margin Operating Profit Margin Net Profit Margin Retum on Assets Retum on Equity 1.25 0.27 44.12 32.45 60.23 16.35 3.72 2.05 0.54 9.33 32.00% 14.00% 8.50% 17.46% 38.25%
Transcribed Image Text:Appendix A3: Canadian Motorbikes Industry Averages Current Ratio Cash Ratio Inventory Turnover (days) A/R Turnover (days) A/P Turnover (days) Cash Conversion Cycle Fixed Assets Turnover Total Assets Turnover Debt Ratio Times Interest Earned Gross Profit Margin Operating Profit Margin Net Profit Margin Retum on Assets Retum on Equity 1.25 0.27 44.12 32.45 60.23 16.35 3.72 2.05 0.54 9.33 32.00% 14.00% 8.50% 17.46% 38.25%
ANNETILIA ML. ναιιανιαιινιωιωι WINES Comparative Income Statement ($M) For the Years Ended Dec 31, 2009 to 2014 Sales Cost of Goods Sold Gross Profit Selling and Administration Depreciation Operating Profit Interest Earnings Before Taxes Taxes Net Income 2011 2012 2013 2014 $725.45 $793.34 $814.55 $856.00 2009 2010 $287.14 $299.45 $209.69 $210.45 $506.91 $559.53 $595.34 $629.43 $ 77.45 $ 89.00 $218.54 $233.81 $219.21 $226.57 $ 57.34 $60.06 $104.14 $125.53 $136.57 $160.23 $7.53 $13.54 $21.54 $ 20.89 $21.22 $26.54 $ 12.58 $15.40 $ 92.86 $ 87.39 $61.42 $ 39.80 $9.41 $ 12.53 $35.51 $24.67 $17.96 $13.01 $ 3.17 $2.87 $57.35 $ 62.72 $ 43.46 $26.79 1.01 $0.92 $18.35 $20.07 $13.91 $ 8.57 $ 2.16 $ 1.95 $39.00 $42.65 $29.55 $18.22 $ tax rate 32% 1 - tax rate 68% Net Income +1(1-tax rate) $ 8.57 Cash A/R Inventory Appendix A2: Canadian Motorbikes Comparative Balance Sheet ($M) For the Years Ended Dec 31, 2009 to 2014 2009 Total Current Assets Land, Plant and Equipment Other Assets Total Assets 32% 68% $10.46 $ 63.15 A/P Current Portion of LT Debt Total Current Liabilities Long-term Debt Total Liabilities Shareholders' Equity Total Liabilities and Equities 32% 68% 32% 32% 32% 68% 68% 68% $59.43 $ 41.76 $ 27.07 2011 2014 2010 2012 2013 $ 10.76 $ 20.56 $ 25.78 $ 38.55 $ 34.21 $ 29.75 $ 45.01 $ 48.54 $ 84.89 $ 85.39 $ 95.32 $ 99.23 $ 17.12 $79.66 $ 82.69 $ 79.30 $ 53.88 $ 75.33 $72.89 $148.76 $193.36 $203.24 $183.41 $204.31 $ 54.32 $ 162.28 $184.18 $ 178.01 $ 182.74 $211.48 $ 2.47 $ 5.39 $ 8.38 $ 8.82 $9.49 $ 11.65 $129.68 $316.43 $385.92 $390.07 $375.64 $427.44 $ 53.77 $ 90.73 $112.15 $109.96 $129.04 $189.84 $ 2.88 $ 18.09 $ 18.77 $ 14.32 $ 8.56 $ 6.22 $ 52.82 $185.45 $193.84 $161.98 $109.47 $294.27 $324.76 $286.26 $ 20.21 $ 22.16 $ 61.16 $ 103.81 $129.68 $316.43 $385.92 $390.07 $ 56.65 $108.82 $130.92 $124.28 $137.60 $ 196.06 $104.68 $ 79.80 $242.28 $275.86 $ 133.36 $ 151.58 $375.64 $427.44
Transcribed Image Text:ANNETILIA ML. ναιιανιαιινιωιωι WINES Comparative Income Statement ($M) For the Years Ended Dec 31, 2009 to 2014 Sales Cost of Goods Sold Gross Profit Selling and Administration Depreciation Operating Profit Interest Earnings Before Taxes Taxes Net Income 2011 2012 2013 2014 $725.45 $793.34 $814.55 $856.00 2009 2010 $287.14 $299.45 $209.69 $210.45 $506.91 $559.53 $595.34 $629.43 $ 77.45 $ 89.00 $218.54 $233.81 $219.21 $226.57 $ 57.34 $60.06 $104.14 $125.53 $136.57 $160.23 $7.53 $13.54 $21.54 $ 20.89 $21.22 $26.54 $ 12.58 $15.40 $ 92.86 $ 87.39 $61.42 $ 39.80 $9.41 $ 12.53 $35.51 $24.67 $17.96 $13.01 $ 3.17 $2.87 $57.35 $ 62.72 $ 43.46 $26.79 1.01 $0.92 $18.35 $20.07 $13.91 $ 8.57 $ 2.16 $ 1.95 $39.00 $42.65 $29.55 $18.22 $ tax rate 32% 1 - tax rate 68% Net Income +1(1-tax rate) $ 8.57 Cash A/R Inventory Appendix A2: Canadian Motorbikes Comparative Balance Sheet ($M) For the Years Ended Dec 31, 2009 to 2014 2009 Total Current Assets Land, Plant and Equipment Other Assets Total Assets 32% 68% $10.46 $ 63.15 A/P Current Portion of LT Debt Total Current Liabilities Long-term Debt Total Liabilities Shareholders' Equity Total Liabilities and Equities 32% 68% 32% 32% 32% 68% 68% 68% $59.43 $ 41.76 $ 27.07 2011 2014 2010 2012 2013 $ 10.76 $ 20.56 $ 25.78 $ 38.55 $ 34.21 $ 29.75 $ 45.01 $ 48.54 $ 84.89 $ 85.39 $ 95.32 $ 99.23 $ 17.12 $79.66 $ 82.69 $ 79.30 $ 53.88 $ 75.33 $72.89 $148.76 $193.36 $203.24 $183.41 $204.31 $ 54.32 $ 162.28 $184.18 $ 178.01 $ 182.74 $211.48 $ 2.47 $ 5.39 $ 8.38 $ 8.82 $9.49 $ 11.65 $129.68 $316.43 $385.92 $390.07 $375.64 $427.44 $ 53.77 $ 90.73 $112.15 $109.96 $129.04 $189.84 $ 2.88 $ 18.09 $ 18.77 $ 14.32 $ 8.56 $ 6.22 $ 52.82 $185.45 $193.84 $161.98 $109.47 $294.27 $324.76 $286.26 $ 20.21 $ 22.16 $ 61.16 $ 103.81 $129.68 $316.43 $385.92 $390.07 $ 56.65 $108.82 $130.92 $124.28 $137.60 $ 196.06 $104.68 $ 79.80 $242.28 $275.86 $ 133.36 $ 151.58 $375.64 $427.44
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