Ratio AnalysisBased on the Income Statement and Balance Sheet, complete the table below.Then comment on the liquidity, profitability, leverage, asset management and market value. Analysis of Financial Data (Table with ratios)Ratio Analysis2021 Est. 2020 2019 Industry Average Liquidity Ratios Current Ratio (times) 4.2Quick Ratio (times) 2.1 Asset Management Ratios Average sales/day 9Inventory Turnover Ratio (times) 9Days Sales Outstanding (days) 36Fixed Assets Turnover Ratio (times) 3Total Asset Turnover Ratio 1.8 Debt Management Ratios Total Debt to Total Assets (%) 40Times Interest Earned (times) 6Debt to Equity Ratio (%) 1 Profitability Ratios Profit Margin on Sales (%) 8Earning Power (%) 17.2Return on Total Assets (%) 12Return on Common Equity (%) 25 Market Value Ratios Price/Earnings Ratio Price/Earnings Ratio (times) 12.5Price/Cash Flow Ratio (times) 6.8Market /Book Value Ratio (times) 1.7 BnB Construction Inc.Balance Sheet (Millions of Dollars)20212021Assets20202019Liabilities20202019EstEstCash and Cash151015Accounts payable1156030EquivalentsShort-Term1065Overdrafts11511060investmentsAccounts Receivable420375315Accruals260140130Inventories700615415Total Current Liabilities490310220Long-Term Bonds andTotal Current Assets1,1451,0008101300754580New LoanNet Plant and18841,190870Total Debt17901,064.00800EquipmentPreferred Stock404040Common Stock130130130Retained Earnings1069956710Total Common Equity11991086840$$$Total Liabilities and$$$Total Assets3,0292,1901,680Equity3,0292,1901,680Est. Estimate%24 BnB Construction Inc.Income Statement (Millions of Dollars)2021 Est.20202019Net Sales4,0003,0002,850Operating Costs3,1002,3002,100ЕBITD900.00700750Depreciation11010090AmortizatonDepreciation and Amortization11010090EBITD790600660Interest1008860Earnings Before Taxes690512600Taxes (40%)Net Income Before preferred Dividends276204.8240414307.2360Preferred Dividends444Net Income$410.0 $303.2 $356.0Common Dividends57.557.553Addition to retained Earnings$352.50 $245.70 $303.0Per Share Date202120202019Common Stock Price28.0$23.00 $26.00Earnings Per Share (EPS)???$6.06 $7.121.15 $Dividend Per Share (DPS)Book Value Per Share (BVPS)????1.06????$21.7216.80Cash Flow Per Share????$8.06 $8.92

The ratio analysis of company would be state the current performance of the company as compared to…

Ratio Analysis Based on the Income Statement and Balance Sheet, complete the table below. Then comment on the liquidity, profitability, leverage, asset management and market value. Analysis of Financial Data (Table with ratios) Ratio Analysis 2021 Est. 2020 2019 Industry Average Liquidity Ratios Current Ratio (times) 4.2 Quick Ratio (times) 2.1 Asset Management Ratios Average sales/day 9 Inventory Turnover Ratio (times) 9 Days Sales Outstanding (days) 36 Fixed Assets Turnover Ratio (times) 3 Total Asset Turnover Ratio 1.8 Debt Management Ratios Total Debt to Total Assets (%) 40 Times Interest Earned (times) 6 Debt to Equity Ratio (%) 1 Profitability Ratios Profit Margin on Sales (%) 8 Earning Power (%) 17.2 Return on Total Assets (%) 12 Return on Common Equity (%) 25 Market Value Ratios Price/Earnings Ratio Price/Earnings Ratio (times) 12.5 Price/Cash Flow Ratio (times) 6.8 Market /Book Value Ratio (times) 1.7

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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Ratio Analysis

Based on the Income Statement and Balance Sheet, complete the table below.

Then comment on the liquidity, profitability, leverage, asset management and market value.

Analysis of Financial Data (Table with ratios)

Ratio Analysis	2021 Est.	2020	2019	Industry Average
Liquidity Ratios
Current Ratio (times)				4.2
Quick Ratio (times)				2.1

Asset Management Ratios
Average sales/day				9
Inventory Turnover Ratio (times)				9
Days Sales Outstanding (days)				36
Fixed Assets Turnover Ratio (times)				3
Total Asset Turnover Ratio				1.8

Debt Management Ratios
Total Debt to Total Assets (%)				40
Times Interest Earned (times)				6
Debt to Equity Ratio (%)				1

Profitability Ratios
Profit Margin on Sales (%)				8
Earning Power (%)				17.2
Return on Total Assets (%)				12
Return on Common Equity (%)				25

Market Value Ratios Price/Earnings Ratio
Price/Earnings Ratio (times)				12.5
Price/Cash Flow Ratio (times)				6.8
Market /Book Value Ratio (times)				1.7

BnB Construction Inc.
Balance Sheet (Millions of Dollars)
2021
2021
Assets
2020
2019
Liabilities
2020
2019
Est
Est
Cash and Cash
15
10
15
Accounts payable
115
60
30
Equivalents
Short-Term
10
65
Overdrafts
115
110
60
investments
Accounts Receivable
420
375
315
Accruals
260
140
130
Inventories
700
615
415
Total Current Liabilities
490
310
220
Long-Term Bonds and
Total Current Assets
1,145
1,000
810
1300
754
580
New Loan
Net Plant and
1884
1,190
870
Total Debt
1790
1,064.00
800
Equipment
Preferred Stock
40
40
40
Common Stock
130
130
130
Retained Earnings
1069
956
710
Total Common Equity
1199
1086
840
$
$
$
Total Liabilities and
$
$
$
Total Assets
3,029
2,190
1,680
Equity
3,029
2,190
1,680
Est. Estimate
%24

BnB Construction Inc.
Income Statement (Millions of Dollars)
2021 Est.
2020
2019
Net Sales
4,000
3,000
2,850
Operating Costs
3,100
2,300
2,100
ЕBITD
900.00
700
750
Depreciation
110
100
90
Amortizaton
Depreciation and Amortization
110
100
90
EBITD
790
600
660
Interest
100
88
60
Earnings Before Taxes
690
512
600
Taxes (40%)
Net Income Before preferred Dividends
276
204.8
240
414
307.2
360
Preferred Dividends
4
4
4
Net Income
$
410.0 $
303.2 $
356.0
Common Dividends
57.5
57.5
53
Addition to retained Earnings
$
352.50 $
245.70 $
303.0
Per Share Date
2021
2020
2019
Common Stock Price
28.0
$
23.00 $
26.00
Earnings Per Share (EPS)
???
$
6.06 $
7.12
1.15 $
Dividend Per Share (DPS)
Book Value Per Share (BVPS)
????
1.06
????
$
21.72
16.80
Cash Flow Per Share
????
$
8.06 $
8.92

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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