Answered: Find the average current ratio for the…

Find the average current ratio for the three following companies Current Ratio 2016 2017 2018 2019 2020 BHP 1.44 1.85 2.51 1.89 1.45 RIO 1.61 1.71 1.98 1.56 1.80 FMG 1.48 1.18 1.33 1.37 2.25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Estimating Share Value Using the ROPI Model Following are forecasted sales, NOPAT, and NOA for Colgate-Palmolive Company for 2019 through 2022. Forecast Horizon Period Colgate Palmolive (CL) Reported $ millions 2018 2019 2020 2021 2022 Sales $13,990 $14,409 $14,842 $15,287 $15,746 NOPAT 2,463 2,536 2,612 2,690 2,771 NOA 5,253 5,411 5,574 5,740 5,913 a. Forecast the terminal period values for Sales, NOPAT, and NOA, assuming a 1% terminal period growth rate. Note: Round answers to the nearest dollar. Terminal period sales 2$ 15,903 Terminal period NOPAT $ 2,799 Terminal period NOA 2$ 5,972 b. Estimate the value of a share of Colgate-Palmolive common stock using the residual operating income (ROPI) model. Assume a discount rate (WACC) of 5.70%, common shares outstanding of 862.9 million, net nonoperating obligations (NNO) of $5,076 million, and noncontrolling interest (NCI) from the balance sheet of $269 million. Note: Round answers to two decimal places. $ 0 c. Colgate-Palmolive stock…
Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2018, for Humana. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. Reported Forecast Horizon Period Terminal $ millions Sales NOPAT NOA 2021 2022 2020 2018 2019 $57,472 $58,326 $59,192 $60,072 $60,964 3,179 3,218 3,140 3,052 3,102 4,844 4,657 4,718 4,781 4,592 Period $61,568 3,244 4,887 Answer the following requirements with the following assumptions: Assumptions Terminal period growth rate 1% Discount rate (WACC) 7.8% Common shares outstanding 135.60 million Net nonoperating obligations (NNO) $(5,569) million Noncontrolling interest $0 million NNO is negative because Humana's nonoperating assets exceed its nonoperating liabilities. (a) Estimate the value of a share of Humana's common stock using the…
Question: What do these ratios say about a company it an automobile industry? MEASURES RATIOS 2017 2016 2015 ACTIVITY RATIOS INVENTORY TURNOVER 4.4037 3.2289 2.7986 TOTAL ASSET TURNOVER 0.4103 0.3089 0.5015 RECEIVABLES TURNOVER 23.191 20.9551 20.4567 COVERAGE RATIOS CASH COVERAGE RATIO 0.2016 2.17 -1.865 INTEREST COVERAGE RATIO -3.4649 -3.3567 -6.0296 LIQUIDITY RATIOS CURRENT RATIO 0.8561 1.0743 0.9897 QUICK RATIO 0.561 0.719 0.535 SOLVENCY RATIOS DEBT RATIO 0.8034 0.7391 0.8598 TOTAL DEBT TO EQUITY RATIO 5.4335 3.5242 6.4011 CASH PERFORMANCE RATIOS CASH RETURN TO REVENUE 0.2874 0.3279 0.3834 CASH RETURN TO ASSETS -0.002 -0.0055 -0.065 CASH RETURN TO EQUITY -0.0141 -0.0261 -0.484 PROFITABILITY RATIOS GROSS PROFIT MARGIN 0.1889 0.2285 0.2282 RETURN ON ASSET -0.0872 -0.0503 -0.1279…
Using the findings, provide a brief summary about the financial status of each of the companies and provide a recommendation for the investment choice.
1. Calculate the expected return for the following six returns for thetwo companies below: Company A Company B10% 13%17% 23%-9% 3%21% 15%11% 18%19% -10%
Please Solve
Using the information below calculate ROA and ROE. Once your calculations are complete, answer the five questions relating to your calculations. Profit Margin Asset Turnover FLR ROA is: Select one: O a. Increasing 2018 4.50% 5.50 1.40 O b. Decreasing O c. Remaining fairly flat 2015 4.70% 4.80% 5.90 6.50 1.40 1.50 2017 2016 4.70% 5.80 1.40 industry 2014 average 5.00% 4.70% 7.00 6.00 1.50 1.50
Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA for Texas Roadhouse for 2016 through 2019. a. Forecast the terminal period values assuming a 1% terminal period growth rate for all three model inputs: Sales, NOPAT, and NOA. Round your answers to the nearest dollar. Reported Forecast Horizon Terminal $ thousands 2015 2016 2017 2018 2019 Period Sales $1,807,368 $2,078,473 $2,390,244 $2,581,464 $2,787,981 Answer NOPAT 102,495 170,435 196,000 211,680 228,614 Answer NOA 662,502 761,904 876,189 946,284 1,021,987 Answer b. Estimate the value of a share of TXRH common stock using the discounted cash flow (DCF) model as of December 29, 2015; assume a discount rate (WACC) of 7%, common shares outstanding of 70,091 thousand, net nonoperating obligations (NNO) of $(14,680) thousand, and noncontrolling interest (NCI) from the balance sheet of $7,520 thousand. Note that NNO is negative because the company’s cash exceeds its…
How do i find the industry ratios for Walmart and Target 2022, comparing both retailers, Gross Margin Ratio, Profit Margin Ratio and Return on Asset to the industry.
21
Which of the following is not true? Firm A Firm B Industry Benchmark 2018 2019 2020 2018 2019 2020 2018 2019 2020 ROA 9.14% 9.50% 9.90% 8.11% 8.16% 8.19% 8.11% 8.14% 8.15% ROE 22.45% 22.95% 23.45% 19.65% 19.88% 20.12% 19.95% 20.55% 21.00% TIE 1.75 1.65 1.55 2.75 2.90 3.05 2.25 2.30 2.50 CR 3.25 3.66 3.75 2.55 2.65 2.75 2.40 1.45 2.50 EPS 1.90 2.10 2.25 1.55 1.65 1.75 1.52 1.55 1.60 A Based on ROA, Firm A is doing better than Firm B and the Industry benchmark. B Based on Times Interest Earned, Firm A is doing better than Firm B and the Industry benchmark. C Based on ROE, Firm A is doing better than Firm B and the Industry benchmark. D Based on current ratio, Firm B is doing better than the Industry benchmark.
Financial metricsfor crystal GlobeTravel include a total asset turnoverof 1,25 and a return equity of14,30 %, and a debit ratio of 15 % with total asset amounting to R3588 as per the statementof financial position, and considering the financing structure comprising both debt and equity,what is the net profit margin of the company?

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*Current Ratio*
	2016	2017	2018	2019	2020
BHP	*1.44*	*1.85*	*2.51*	*1.89*	*1.45*
RIO	*1.61*	*1.71*	*1.98*	*1.56*	*1.80*
FMG	*1.48*	*1.18*	*1.33*	*1.37*	*2.25*