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 122,312,000 127,005,000 136,067,000 Miscellaneous Stock Options Warrants 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 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 122,312,000 127,005,000 136,067,000 Miscellaneous Stock Options Warrants 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 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
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
Related questions
Question
I need an analysis of the performance and surroundings of Liquidity Ratio that made the numbers for it and how the ABC company had maintained these numbers for Liquidity ratio. Added my table I field out in a separate picture and added the tables for the company.
Transcribed Image Text: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
136,067,000
Miscellaneous Stock Options Warrants
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
Transcribed Image Text: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
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