RATIO ANALYSIS Liquidity Ratios Current Ratio Quick (Acid-Test) Ratio Activity Ratios Inventory Turnover Average Collection Period Average Payment Period Total Asset Turnover Fixed Asset Turnover Debt Ratios Debt Ratio Debt-to-Equity Ratio Times Interest Earned Ratio Financial Leverage (Equity) Multiplier Profitability Ratios Gross Profit Margin Operating Profit Margin Net Profit Margin Earnings per Share (EPS) Return on Total Assets (ROA) Return on Equity (ROE) Market Ratios Price/Earnings (P/E) Ratio Market/Book (M/B) Ratio Modified Dupont Analysis Net Profit Margin Total Asset Turnover Financial Leverage (Equity) Multiplier Return on Equity (ROE) Company 2020 2019 2018 Industry 2020 2.28 1.69 5.75 56.78 95.22 0.81 1.25 0.39 0.64 5.67 1.64 36.1% 18.9% 11.7% 7.04 9.5% 15.6% 8.82 1.38 11.7% 0.81 1.64 15.6%
RATIO ANALYSIS Liquidity Ratios Current Ratio Quick (Acid-Test) Ratio Activity Ratios Inventory Turnover Average Collection Period Average Payment Period Total Asset Turnover Fixed Asset Turnover Debt Ratios Debt Ratio Debt-to-Equity Ratio Times Interest Earned Ratio Financial Leverage (Equity) Multiplier Profitability Ratios Gross Profit Margin Operating Profit Margin Net Profit Margin Earnings per Share (EPS) Return on Total Assets (ROA) Return on Equity (ROE) Market Ratios Price/Earnings (P/E) Ratio Market/Book (M/B) Ratio Modified Dupont Analysis Net Profit Margin Total Asset Turnover Financial Leverage (Equity) Multiplier Return on Equity (ROE) Company 2020 2019 2018 Industry 2020 2.28 1.69 5.75 56.78 95.22 0.81 1.25 0.39 0.64 5.67 1.64 36.1% 18.9% 11.7% 7.04 9.5% 15.6% 8.82 1.38 11.7% 0.81 1.64 15.6%
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
![Fin Statements
RATIO ANALYSIS
Liquidity Ratios
Current Ratio
Quick (Acid-Test) Ratio
Activity Ratios
Inventory Turnover
Average Collection Period
Average Payment Period*
Total Asset Turnover
Fixed Asset Turnover
Debt Ratios
Debt Ratio
Debt-to-Equity Ratio
Times Interest Earned Ratio
Financial Leverage (Equity) Multiplier
Profitability Ratios
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Earnings per Share (EPS)
Return on Total Assets (ROA)
Return on Equity (ROE)
Market Ratios
Price/Earnings (P/E) Ratio
Market/Book (M/B) Ratio
Modified Dupont Analysis
Net Profit Margin
Total Asset Turnover
Ratio Analysis
Financial Leverage (Equity) Multiplier
Return on Equity (ROE)
*Purchases percentage assumed
Company
2020
70%
2019
Assignment
2018
Industry
2020
2.28
1.69
5.75
56.78
95.22
0.81
1.25
0.39
0.64
5.67
1.64
36.1%
18.9%
11.7%
7.04
9.5%
15.6%
8.82
1.38
11.7%
0.81
1.64
15.6%
Analysis](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e950d52-5d5a-45c5-bdd4-1c445f80ad28%2F46b5093e-b345-427d-955b-61160e02345b%2Fyqw51dt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Fin Statements
RATIO ANALYSIS
Liquidity Ratios
Current Ratio
Quick (Acid-Test) Ratio
Activity Ratios
Inventory Turnover
Average Collection Period
Average Payment Period*
Total Asset Turnover
Fixed Asset Turnover
Debt Ratios
Debt Ratio
Debt-to-Equity Ratio
Times Interest Earned Ratio
Financial Leverage (Equity) Multiplier
Profitability Ratios
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Earnings per Share (EPS)
Return on Total Assets (ROA)
Return on Equity (ROE)
Market Ratios
Price/Earnings (P/E) Ratio
Market/Book (M/B) Ratio
Modified Dupont Analysis
Net Profit Margin
Total Asset Turnover
Ratio Analysis
Financial Leverage (Equity) Multiplier
Return on Equity (ROE)
*Purchases percentage assumed
Company
2020
70%
2019
Assignment
2018
Industry
2020
2.28
1.69
5.75
56.78
95.22
0.81
1.25
0.39
0.64
5.67
1.64
36.1%
18.9%
11.7%
7.04
9.5%
15.6%
8.82
1.38
11.7%
0.81
1.64
15.6%
Analysis
![LONGVIEW MANUFACTURING CORPORATION
Income Statement (in thousands)
Sales (Revenue)
Cost of Goods Sold
Gross Profits
Operating Expenses
Selling expense
General and administrative expenses
Other operating expenses
Depreciation expense
Total Operating Expense
Operating Profits (EBIT)
Interest Expense
Net Profits before Tax (EBT)
Taxes
Net Profits after Taxes (Net Income)
Preferred Stock Dividends
Earnings available for common stockholders
Common Stock Dividends
Balance Sheet
Assets
Cash
Marketable Securities
Accounts Receivable
Inventories
Total Current Assets
Land and buildings
Machinery and equipment
Furniture and fixtures
Vehicles
Other (includes financial leases)
Total Gross Fixed Assets (at cost)
Accumulated Depreciation
Net Fixed Assets
Total Assets
Liabilities and Stockholders' Equity
Accounts Payable
Notes Payable
Accruals
Total Current Liabilities
Long-term Debt (includes financial leases)
Total Liabilities
Preferred Stock
Common Stock
Paid-in Capital
etained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
Common stock: # of shares outstanding
Common stock: market price, end of period
Book Value per share of Common Stock
Calendar
2020
S
$3,400
$2,325
$1,075
$104
$196
$33
$256
$589
$486
$98
$388
$81
$307
$10
$297
$30
$382
$325
$104
390
81
140
611
910
1,521
170
191
428
1,401.52
2,190.52
3,711.52
2019
%
S
100.0% $3,074
68.4% $2,088
31.6%
$986
$4,800
129.3%
$2,551 68.7%
$2,249 60.6%
$3,712 100.0%
76262
38.2
$28.72
3.1%
5.8%
1.0%
7.5%
17.3%
6
14.3%
2.9%
11.4%
2.4%
9.0%
0.3%
8.7%
0.9%
11.6%
9.8%
$288
$430
$83
2.2%
1.8%
$51
$590
15.9%
13.6%
$365
$360
9.7%
7.8%
$300
$1,463 39.4%
32.9%
$1,004
$2,308 62.2% $2,072 55.8% $1,903
$2,103 56.7% $1,866 50.3% $1,693
10.3%
$358
9.6%
8.8%
$275
7.4%
2.8%
$98
2.6%
11%
2%
4%
16%
25%
41%
5%
5%
12%
38%
59%
100%
To Do
$100
2.9%
$194
5.7%
$35
1.0%
$239
7.0%
$568 16.7%
$418
12.3%
$93
2.7%
$325
9.6%
$94
2.8%
$231
6.8%
$10
0.3%
$221
$0
$363
$68
$503
$289
$1,223
2018
%
S
90.4% $2,567
61.4% $1,711
29.0%
$856
382
79
159
620
1,023
1,643
200
191
428
1,135
1,954
3.597
6.5%
0.0%
$4,669
$2,295
$2,374 64.0%
$3,597 96.9%
76244
34.02
$25.63
$108
$187
$35
$223
$553
$303
$91
$212
$64
$148
$10
$138
SO
$316
$314
$96
125.8%
$4.322
61.8% $2,056
$2,266
$3.270
10% $270.00
2% $99.00
4% $114.00
17% $483.00
28% $967.00
44% $1,450.00
5% $200.00
5% $191.00
12% $417.00
31% $1,012.00
53% $1,820.00
97% $3,270.00
76244
$32.10
$23.87
%
75.5%
50.3%
25.2%
3.2%
5.5%
1.0%
6.6%
16.3%
8.9%
2.7%
6.2%
1.9%
4.4%
0.3%
4.1%
0.0%
7.8%
1.4%
9.8%
8.1%
27.0%
51.3%
45.6%
8.5%
8.5%
2.6%
116.4%
55.4%
61.0%
88.1%
7%
3%
3%
13%
26%
39%
5%
5%
11%
27%
49%
88%
Notifications
Inbox](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e950d52-5d5a-45c5-bdd4-1c445f80ad28%2F46b5093e-b345-427d-955b-61160e02345b%2F4eizfn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:LONGVIEW MANUFACTURING CORPORATION
Income Statement (in thousands)
Sales (Revenue)
Cost of Goods Sold
Gross Profits
Operating Expenses
Selling expense
General and administrative expenses
Other operating expenses
Depreciation expense
Total Operating Expense
Operating Profits (EBIT)
Interest Expense
Net Profits before Tax (EBT)
Taxes
Net Profits after Taxes (Net Income)
Preferred Stock Dividends
Earnings available for common stockholders
Common Stock Dividends
Balance Sheet
Assets
Cash
Marketable Securities
Accounts Receivable
Inventories
Total Current Assets
Land and buildings
Machinery and equipment
Furniture and fixtures
Vehicles
Other (includes financial leases)
Total Gross Fixed Assets (at cost)
Accumulated Depreciation
Net Fixed Assets
Total Assets
Liabilities and Stockholders' Equity
Accounts Payable
Notes Payable
Accruals
Total Current Liabilities
Long-term Debt (includes financial leases)
Total Liabilities
Preferred Stock
Common Stock
Paid-in Capital
etained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
Common stock: # of shares outstanding
Common stock: market price, end of period
Book Value per share of Common Stock
Calendar
2020
S
$3,400
$2,325
$1,075
$104
$196
$33
$256
$589
$486
$98
$388
$81
$307
$10
$297
$30
$382
$325
$104
390
81
140
611
910
1,521
170
191
428
1,401.52
2,190.52
3,711.52
2019
%
S
100.0% $3,074
68.4% $2,088
31.6%
$986
$4,800
129.3%
$2,551 68.7%
$2,249 60.6%
$3,712 100.0%
76262
38.2
$28.72
3.1%
5.8%
1.0%
7.5%
17.3%
6
14.3%
2.9%
11.4%
2.4%
9.0%
0.3%
8.7%
0.9%
11.6%
9.8%
$288
$430
$83
2.2%
1.8%
$51
$590
15.9%
13.6%
$365
$360
9.7%
7.8%
$300
$1,463 39.4%
32.9%
$1,004
$2,308 62.2% $2,072 55.8% $1,903
$2,103 56.7% $1,866 50.3% $1,693
10.3%
$358
9.6%
8.8%
$275
7.4%
2.8%
$98
2.6%
11%
2%
4%
16%
25%
41%
5%
5%
12%
38%
59%
100%
To Do
$100
2.9%
$194
5.7%
$35
1.0%
$239
7.0%
$568 16.7%
$418
12.3%
$93
2.7%
$325
9.6%
$94
2.8%
$231
6.8%
$10
0.3%
$221
$0
$363
$68
$503
$289
$1,223
2018
%
S
90.4% $2,567
61.4% $1,711
29.0%
$856
382
79
159
620
1,023
1,643
200
191
428
1,135
1,954
3.597
6.5%
0.0%
$4,669
$2,295
$2,374 64.0%
$3,597 96.9%
76244
34.02
$25.63
$108
$187
$35
$223
$553
$303
$91
$212
$64
$148
$10
$138
SO
$316
$314
$96
125.8%
$4.322
61.8% $2,056
$2,266
$3.270
10% $270.00
2% $99.00
4% $114.00
17% $483.00
28% $967.00
44% $1,450.00
5% $200.00
5% $191.00
12% $417.00
31% $1,012.00
53% $1,820.00
97% $3,270.00
76244
$32.10
$23.87
%
75.5%
50.3%
25.2%
3.2%
5.5%
1.0%
6.6%
16.3%
8.9%
2.7%
6.2%
1.9%
4.4%
0.3%
4.1%
0.0%
7.8%
1.4%
9.8%
8.1%
27.0%
51.3%
45.6%
8.5%
8.5%
2.6%
116.4%
55.4%
61.0%
88.1%
7%
3%
3%
13%
26%
39%
5%
5%
11%
27%
49%
88%
Notifications
Inbox
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