1 2 3 4 Current ratio 5 Cash ratio 6 Raw material Turnover in Days 7 WIP Turnover in Days 8 Finished Goods Turnover in Days 9 A/R Turnover in Days (Collection Period) 10 A/P Turnover in Days (Payables Period) 11 Cash Conversion Cycle 12 Fixed Asset Turnover 13 Total Asset Turnover 14 Long-term Debt to Total Capitalization 15 Cash flow coverage 16 Gross Profit Margin 17 Operating profit Margin 18 Net profit Margin 19 Return on Assets 20 Return on Equity 21 Cover Page Data Ratio Formulas Ratio Analysis + Ready Strong Ties Ltd. 2006 2007 2008 Industry Ratios 4.00 0.50 31.00 days 3.00 days 51.00 days 63.00 days 11.00 days 137.00 days 4.10 1.70 35% 1.12 0.98 0.43 2.00 32% 16% 10% 17% 28% 5 6 Net Sales 7 Cost of goods sold 8 Gross Profit 9 Selling and Administration 10 Depreciation 11 Operating Income 12 Other Income 13 Interest Income 14 Other Expenses 15 Interest 16 Income before Taxes For the year ending December 31 $ 2006 16,200 $ 2007 2008 17,450 $ 16,500 10,445 11,956 11,950 5,755 5,494 4,550 3,054 3,130 3,379 396 720 756 2,305 1,644 415 21 10 2 246 291 407 2,080 1,363 10 17 Income taxes (30%) 624 409 3 18 Net Income (profit for the year) $ 1,456 $ 954 $ 7 19 20 21 22 23 24 Cash Balance Sheet at December 31 2006 2007 2008 $ 234 $ 122 $ 61 25 Temporary Investments 26 Accounts Receivable, net 27 Raw Materials Inventory 28 WIP Inventory 29 Finished Goods Inventories 30 Prepaid Expenses 31 Total current assets $ 1,034 $ 488 $ 99 3,250 3,450 2,854 1,025 1,350 1,395 200 138 42 2,030 1,700 1,200 182 143 188 7,955 7,391 5,839 32 Land, Plant, and Equipment 4,893 7,076 9,590 33 Less: Accumulated Depreciation (1,380) (2,100) (2,856) 34 Net Land, Plant, and Equipment 3,513 4,976 6,734 35 Total Assets $ 11,468 $ 12,367 $ 12,573 36 37 Accounts Payable 534 543 500 45 Total Shareholders' Equity 38 Income Tax Payable 39 Current portion of Long-term Debt 40 Total Current Liabilities 41 Long-term Liabilities 42 Shareholders' Equity 43 Common Shares 44 Retained Earnings 46 Total liabilities and Equity 54 35 23 1,000 1,145 1,340 1,588 1,723 1,863 3,190 3,500 4,059 1,350 1,350 1,350 5,340 5,794 5,301 6,690 7,144 6,651 $ 11,468 $ 12,367 $ 12,573 17 Cover Page Data Ratio Formulas Ratio Analysis + Ready