Profitability and Asset Management Ratios You are thinking of investing in Nikki T's, Inc. You have only the following information on the firm at year-end 2015: net income is $250,000, total debt is $2.5 million, and debt ratio is 55 percent. What is Nikki T's ROE for 2015?
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- Find the following financial ratios for LVMH Moet Hennessy Louis Vuitton SA (use year-end figures rather than average values where appropriate) (Round your answers to 2 decimal places (e.g., 32.16).) : 2015 2016 Short-term solvency ratios: Current ratio Quick ratio Cash ratio Asset utilization ratios: Total asset turnover Inventory turnover Receivables turnover Long-term solvency ratios: Total debt ratio Debt–equity ratio Equity multiplier Times interest earned ratio Profitability ratios: Profit margin % % Return on assets % % Return on equity % %The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses. Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $852,000 27,000 7,400 12,000 42,000 $3,006,000 1,944,000 1,062,000 940, 400 $ 121,600 VIRTUAL GAMING SYSTEMS Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable. Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Balance Sheets December 31 2021 $180,000 75,000 99,000 11,400 99,000 204,000 264,000 (63,000) $869,400 $ 60,000 4,800 12,000 279,000 294,000 219,600 2020 $138,000 54,000 129,000…Toby’s forecasted 2021 financial statements follow, along with some industry average ratios. Calculate Toby’s 2021 forecasted ratios and fill in the above table. Calculate the EPS and DPS. The company has a 40% payout ratio. Please provide the solutions for the EPS, DPS, Days Sales Outstanding, Fixed Asset Turnover, Total Asset Turnover, Return on Assets, Return on Equity, Total Debt Ratio, Profit Margin on Sales, P/E Ratio.
- Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of the following company. Financial Ratios Fiscal Year Ended Previous Fiscal Year Formula Dec 31, 2019 Dec 31, 2018 Liquidity Analysis Ratios: Current Assets / Current Liabilities Current Ratio or 1.46 1.36 Working Capital Ratio (Current Assets - Inventory - Prepayments) / Current Liabilities Quick Ratio 0.96 0.86 Solvency Ratio Total Assets / Total Liabilities 1.46 1.44 Financial Leverage Ratios Debt Ratio Total Debt/Total Assets 0.47 0.48 Total Debt/Total Stockholders Equity Debt-to-Equity Ratio 1.48 1.57 Earnings Before Interest and Taxes (EBIT) / Interest Charges Total Assets / Total Stockholders' Equity Interest Coverage 2.38 2.61 Asset to Equity Ratio 3.16 3.28 Profitability Ratios Gross Profit Margin Sales - Cost of Goods Sold or Cost of Service / Sales 19.76 19.43 Net Profit Margin Net Profit / Sales 11.34 11.42 Net Income / Total Assets 2.67 2.9 Return on Assets Net Income /…Requirements 1. Prepare a comparative common-size income statement for Mariner Designs, Inc. using the 2024 and 2023 data. Round percentages to one-tenth percent. 2. To an investor, how does 2024 compare with 2023 ? Explain your reasoningBased on this analysis how would I assess the financial stability and operational efficiency of this company? Ratio and Ratio Formula (in thousands) 2015 2014 2013 Current Industry Average Liquidity Current Ratio =Current Asset / Current Liability 9,900/6,300 1.57 1.61 1.62 1.63 Acid Test Ratio or Quick Ratio = (Cash + Marketable securities + Accounts receivable)/Current liabilities (400+300+3,200)/6,300 0.62 0.64 0.63 0.68 Solvency Times Interest Earned =Earnings before interest & taxes/interest expense, gross (7,060+900)/900 8.84 8.55 8.5 8.45 Profitability Profit margin on sales = net income/sales 7,060/30,500 14% 13.20% 12.10% 13.00% Productivity Asset turnover = sales/avg total assets 30,500/6,000+5,400)/2) 1.85 1.84 1.83 1.84 Inventory turnover = COGS/avg inv 17,600/ (6,000+5,400)/2) 3.09 3.17 3.21 3.18
- Based on the following information you have collected, what is the sustainable growth rate (SGR) for Leo's Photography Studio? Profit Margin Debt/Equity Ratio Capital Intensity Ratio Net Income Dividends O A. O B. O C. O D. 12.42% 8.52% 15.15% 13.63% 7.1% 0.60 0.75 $48,000 $10,000You are considering two possible companies for investment purposes. The following data is available for each company. Company A Net credit sales, Dec. 31, 2019 $540,000 Net Accounts receivable, Dec 31, 2018 $120,000 Net accounts receivable, Dec 31, 2019 $180,000 Number of days sales in receivables ratio, 2018 103 days Net Income, Dec. 31, 2018 $250,000 Company B Net credit sales, Dec. 31, 2019 $620,000 Net Accounts receivable, Dec 31, 2018 $145,000 Net accounts receivable, Dec 31, 2019 $175,000 Number of days sales in receivables ratio, 2018 110 days Net Income, Dec. 31, 2018 $350,000 Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet…How much net income did H&M’s tool, incorporated, generate during 2021? What was the net profit margin? Is the company financed primarily by liabilities or stock holders equity? What is its current ratio?
- All-Hands Property & Casualty Insurance Company has the following financial ratios. 2019 2018 Loss Ratio 67.8 68.1 Expense Ratio 24.2 25.1 Net Investment Yield 3.5 4.0 a. Calculate the Combined Ratio {Loss Ratio + Expense Ratio} for each year. Combined Ratio 2019 Combined Ratio 2018 b. Calculate the Overall Profitability Ratios Overall Profitability Ratio 2019 Overall Profitability Ratio 2018 why the Overall Profitability Ratio Changed in 2019 Based on the Loss Ratio, Expense Ratio, and Net Investment Yield Trends?You've collected the following information about Groot, Inc.: Profit margin Total asset turnover Total debt ratio Payout ratio = 4.44% = 3.50 = .25 = 29% a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROA % 15.54 %Based on the following information, calculate the sustainable growth rate for Kaleb's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 8.1% .51 .67 $ 29,000 $19,720