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

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
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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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