Using the financial ratios calculated from the 2012 annual report of a given company, assess the short-term liquidity, operating efficiency, capital structure, long-term solvency and profitability of the company.
Using the financial ratios calculated from the 2012 annual report of a given company, assess the short-term liquidity, operating efficiency, capital structure, long-term solvency and profitability of the company.
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
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Using the financial ratios calculated from the 2012 annual report of a given company, assess the short-term liquidity, operating efficiency, capital structure, long-term solvency and profitability of the company.
Transcribed Image Text:2012
2011
2010
Liquidity Ratios:
Current ratio
7.47 times
2.84 times
5.19 times
Quick ratio
Cash flow liquidity
1.99 times
2.48 times
1.98 times
Average collection period
Days inventory held
Days payable outstanding
Cash conversion cycle
18 days
266 days
28 days
256 days
17 days
270 days
24 days
263 days
Activity Ratios:
21.79 times
1.35 times
21.24 times
1.37 times
Accounts receivable turnover
Inventory tumover
Payables turnover
15.79 times
13.26 times
Fixed asset tumover
Total asset turnover
7.90 times
29.41 times
1.47 times
1.73 times
Leverage Ratios:
Debt ratio
Long-term debt to total capitalization
Debt to equity
Financial leverage (FL)
20.81 %
17.53 %
11.61 %
0.26 times
0.21 times
1.26 times
1.21 times
Times interest earmed
36.91 times
1748.25 times
Cash interest coverage
Fixed charge coverage
Cash flow adequacy
36.81 times
1095.70 times
2.56 times
3.83 times
3.50 times
1.49 times
8.29 times
5.63 times
Profitability Ratios:
Gross profit margin
Operating profit margin
Net profit margin
Cash flow margin
Return on assets (ROA)
or Return on investment (ROI)
Return on equity (ROE)
57.26 %
57.31 %
56.69 %
8.15 %
12.80 %
10.99 %
5.58 %
8.65 %
7.32 %
4.60 %
7.09 %
3.03 %
8.20 %
14.97 %
10.36 %
18.15 %
Cash return on assets
6.76 %
12.26 %
Market Ratios:
$
$
Eamings per share
Price-to-eamings
Dividend payout
Dividend yield
0.28
0.44
0.35
11.68
18.34
19.57
%24
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