Return on Sales The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.) 2016 Sales revenue $210,000 Cost of goods sold 125,000 Net income 8,300 Dividends 2,600 Earnings per share 4.15 Hi-Tech Instruments, Inc. Balance Sheet (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash $18,300 $18,000 Accounts receivable (net) 46,000 41,000 Inventory 39,500 43,700 Total current assets 103,800 102,700 Plant assets (net) 52,600 50,500 Other assets 15,600 13,800 Total assets $172,000 $167,000 Liabilities and Stockholders' Equity Notes payable-banks $6,000 $6,000 Accounts payable 22,500 18,700 Accrued liabilities 16,500 21,000 Total current liabilities 45,000 45,700 9% Bonds payable 40,000 40,000 Total liabilities 85,000 85,700 Common stock, $25 par value (2,000,000 shares) 50,000 50,000 Retained earnings 37,000 31,300 Total stockholders' equity 87,000 81,300 Total liabilities and stockholders' equity $172,000 $167,000 Industry Average Ratios for Competitors Quick ratio 1.3 Current ratio 2.4 Accounts receivable turnover 5.9 times Inventory turnover 3.5 times Debt-to-equity ratio 0.73 Gross profit percentage 42.8 percent Return on sales 4.5 percent Return on assets 7.6 percent Earnings per share If the company’s most recent price per share of common stock is $62.25, what is the company’s price-earnings ratio and dividend yield?
Return on Sales
The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.)
|
2016 |
|
|
Sales revenue |
$210,000 |
|
Cost of goods sold |
125,000 |
|
Net income |
8,300 |
|
Dividends |
2,600 |
|
Earnings per share |
4.15 |
|
Hi-Tech Instruments, Inc. |
||
|
(Thousands of Dollars) |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Assets |
|
|
|
Cash |
$18,300 |
$18,000 |
|
|
46,000 |
41,000 |
|
Inventory |
39,500 |
43,700 |
|
Total current assets |
103,800 |
102,700 |
|
Plant assets (net) |
52,600 |
50,500 |
|
Other assets |
15,600 |
13,800 |
|
Total assets |
$172,000 |
$167,000 |
|
Liabilities and |
|
|
|
Notes payable-banks |
$6,000 |
$6,000 |
|
Accounts payable |
22,500 |
18,700 |
|
Accrued liabilities |
16,500 |
21,000 |
|
Total current liabilities |
45,000 |
45,700 |
|
9% Bonds payable |
40,000 |
40,000 |
|
Total liabilities |
85,000 |
85,700 |
|
Common stock, $25 par value (2,000,000 shares) |
50,000 |
50,000 |
|
|
37,000 |
31,300 |
|
Total stockholders' equity |
87,000 |
81,300 |
|
Total liabilities and stockholders' equity |
$172,000 |
$167,000 |
|
Industry Average Ratios for Competitors |
|
|
Quick ratio |
1.3 |
|
|
2.4 |
|
Accounts receivable turnover |
5.9 times |
|
Inventory turnover |
3.5 times |
|
Debt-to-equity ratio |
0.73 |
|
Gross profit percentage |
42.8 percent |
|
Return on sales |
4.5 percent |
|
Return on assets |
7.6 percent |
- Earnings per share
If the company’s most recent price per share of common stock is $62.25, what is the company’s price-earnings ratio and dividend yield?
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