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Make three observations in each section - Assets, Liabilities and Net Worth, and Selected Financial Data

Make three observations in each section - Assets, Liabilities and Net Worth, and Selected Financial Data

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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The preceding table gives balance sheet percentages and selected financial data for three companies in very different industries - food and beverage, manufacturing, and social networking. Make three observations in each section - Assets, Liabilities and Net Worth, and Selected Financial Data - that you think are interesting.  Describe what you think is going on.

Assets Cash and marketable securities Accounts receivable Inventories Other current assets Plant & equipment (net) Other assets Total assets Liabilities and Net Worth Accounts payable Accrued items Other current liabilities Long-term debt Other liabilities Preferred stock Common stock Total liabilities and net worth Selected Financial Data Current assets/current liabilities Cash, MS and ARs/current liabilities Inventory turnover (X) Receivables collection period (days) Total debt/total assets Long-term debt/capitalization Revenue/total assets Net profit/revenue Net profit/total assets Total assets/net worth Net profit/net worth EBIT/interest expense EBITDA/revenue Company A 45% 8 0 0 17 27 100% 2% 3 11 16 3 0 65 100% 3.5 3.3 NA 53.8 0.189 0.195 0.47 -0.084 -0.007 1.55 -0.049 NA 0.115 Company B 7% 8 12 16 15 42 100% 7% 5 23 11 35 0 19 100% 1.2 22 0.8 2.9 63.1 0.457 0.447 0.50 0.021 0.02 5.12 0.055 4.8 0.135 Company C 12% 6 2 5 60 15 100% 2% 15 12 30 11 0 29 100% 0.8 0.6 87.3 5.4 0.413 0.493 2.11 0.053 0.117 3.45 0.277 37.5 0.141
Transcribed Image Text:Assets Cash and marketable securities Accounts receivable Inventories Other current assets Plant & equipment (net) Other assets Total assets Liabilities and Net Worth Accounts payable Accrued items Other current liabilities Long-term debt Other liabilities Preferred stock Common stock Total liabilities and net worth Selected Financial Data Current assets/current liabilities Cash, MS and ARs/current liabilities Inventory turnover (X) Receivables collection period (days) Total debt/total assets Long-term debt/capitalization Revenue/total assets Net profit/revenue Net profit/total assets Total assets/net worth Net profit/net worth EBIT/interest expense EBITDA/revenue Company A 45% 8 0 0 17 27 100% 2% 3 11 16 3 0 65 100% 3.5 3.3 NA 53.8 0.189 0.195 0.47 -0.084 -0.007 1.55 -0.049 NA 0.115 Company B 7% 8 12 16 15 42 100% 7% 5 23 11 35 0 19 100% 1.2 22 0.8 2.9 63.1 0.457 0.447 0.50 0.021 0.02 5.12 0.055 4.8 0.135 Company C 12% 6 2 5 60 15 100% 2% 15 12 30 11 0 29 100% 0.8 0.6 87.3 5.4 0.413 0.493 2.11 0.053 0.117 3.45 0.277 37.5 0.141
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