Ratio Calculations 2015 2014 2013 Formula Used (Write out formulas) Liquidity Ratios 0.97 0.88 0.85 Current Ratio 0.97 0.88 0.85 Current ratio = Current assets/Current liabilities Quick Ratio 0.28 0.24 0.22 Quick ration = (Current assets - Inventory)/Current Liabilities Activity Ratios Inventory Turnover 8.11 8.06 7.97 Accounts Recievables Turnover 72.19 72.15 72.83 Total Asset Turnover 2.38 2.34 2.35 Average Collection Period 5.06 5.06 5.01 Financing Ratios Debt Ratio 0.6 0.62 0.67 Debt-to-Equity Ratio 1.5 1.63 2.06 Times Interest Earned Ratio 10.99 11.46 15.61 Market Ratios Earnings per Share (EPS) 1.64 Price Earnings (PE) 8.59 1.15 7.79 1.58 5.37 Profitability Ratios Return on Equity (ROE) 20% 20.80% 33.50% Return on Assets (ROA) 89 7.90% 11% Net Profit Margin 3.40% 3.40% 4.70% Operating Profit Margin 5.60% 5.60% 7.30% Nathaniel D Sain Inventory turnover = COGS/Average Inventory Accounts receivable turnover = Net sales/Average Account Recei Total assets turnover = Net sales/Average total assets Average collection = Average accounts receivable/Net sales x 365 Debt ratio = total debt/total assets Debt to equity ratio = total liabilities/total shareholders equity Times interest earned ratio =EBIT/total interest expense Earnings per share net income/number of share Price earnings = MPS/EPS Return on equity = net income/shareholders equity Return on assets = net income / Average assets Net profit margin = net income/sales Operating profit margin = operating profit/sales III MT217_Unit... Period Ending Total Sales ABC Company Income Statement 31-Dec-15 Cost of Goods Sold $485,651,000 365,086,000 31-Dec-14 $476,294,000 358,069,000 31-Dec-13 $475,210,000 350,400,000 Gross Profit 120,565,000 118,225,000 124,810,000 Selling Generall and Adminstrative 93,418,000 91,353,000 90,343,000 Operating Profit 27,147,000 26,872,000 34,467,000 Total Other Income/Expenses Net 113,000 119,000 115,000 Earnings before Interest and Taxes 27,034,000 26,753,000 34,352,000 Interest Expense 2,461,000 2,335,000 2,200,000 Income Before Tax 24,573,000 24,418,000 32,152,000 Income Tax Expense 7,985,000 8,105,000 9,800,000 Net Income from Continuing Ops 16,588,000 16,313,000 22,352,000 Discontinued Operations 285,000 Net Income (Net Profit) $16.303,000 144,000 $16,169,000 182,000 $22,170,000 14,000,000 Shares outstanding Market Share price per share $10.00 $9.00 $8.50 Q ABC Company Balance Sheet Period Ending 2015 2014 2013 Assets Current Liabilities Current Assets Accounts Payable 2015 58.583,000 2014 57,174,000 2013 56,210,000 Cash and Cash Equivalents Net Receivables Inventory Other Current Assets $9,135,000 6,778,000 45,141,000 2,224,000 Total Current Assets 63,278,000 Property Plant and Equipment 116,655,000 Goodwill Other Assets Total Assets 18,102,000 5,671,000 203,706,000 $7,281,000 6,677,000 44.858.000 2,369,000 61,185,000 117,907,000 19,510,000 6,149,000 204,751,000 $6,789,000 Other current Liabilities 6,525,000 Short-term Debt 6,689,000 89,000 12,082,000 55,000 14,050,000 43,989,000 Total Current Liabilities 65,272,000 69,345,000 70,315,000 2,199,000 Long-term Debt 43,692,000 44,559,000 45,324,000 59,502,000 120,300,000 17,900,000 4,500,000 202,202,000 Deferred Long-term Liability charges Monority Interest 8,805,000 8,017,000 13,553,000 4,543,000 5,084,000 6,875,000 Total Liabilities 122,312,000 127,005,000 Miscellaneous Stock Options Warrants 136,067,000 이 Common Stock 323,000 Retained Earnings 85,777,000 323,000 76,566,000 323,000 65,750,000 Captial Surplus 2,462,000 2,362,000 2,262,000 Other Stockholders Equity -7,168,000 -1,505,000 -2,200,000 Total Stockholders Equity 81,394,000 77,746,000 Total Liabilities & Stockholders Equity 203,706,000 # of Shares Outstanding 14,000,000 204,751,000 14,000,000 Market share price per share $10.00 $9.00 66,135,000 202,202,000 14,000,000 $8.50 Ratio Calculations Liquidity Ratios Current Ratio Quick Ratio Activity Ratios Inventory Turnover Accounts Recievables Turnover Total Asset Turnover Average Collection Period Financing Ratios Debt Ratio Debt-to-Equity Ratio Times Interest Earned Ratio Market Ratios Earnings per Share (EPS) Price Earnings (PE) Profitability Ratios Return on Equity (ROE) Return on Assets (ROA) Net Profit Margin Operating Profit Margin 2015 2014 2013 Formula Used (Write out formulas) Appendix A Technology 3-Year Average for Industry Averages Profitability Gross Margin 66.15% Operating Profit Margin 12.04% Net Profit Margin 6.01% Earnings per Share 1.49 Management Effectiveness Return on Equity 12.40% Return on Assets 5.61% Return on Investment 14.42 Quick Ratio 2.87 Current Ratio 2.57 Debt-to-Equity 61.01% Total Debt to Equity 57.08% Efficiency Total Asset Turnover 0.55 Inventory Turnover 44.98 Accounts Receivable Turnover 8.21