A B C D Rush Creek Company E Statement of Retained Earnings (in $ thousands) Year Ended 12/31/CY Beginning Retained Earnings Add Net Income Less Dividends Paid Ending Retained Earnings SSSS $ 120 $ 249 60 $ 309 1 2 E4 A X B 3 Current Year = CY 4 Last Year = LY 5 6 Liquidity Ratios 7 Current Ratio 8 Quick Ratio 9 fx CY 0 D E F G H Rush Creek Company Ratio Analysis CY LY Calculations CA/CL (CA - Inv.)/ CL 10 Asset Management Ratios 11 Inventory Tumover 12 Days Sales Outstanding (DSO) 13 Total Asset Tumover 14 15 Debt Management Ratios 16 Debt to Equity Ratio 17 Debt Ratio 18 Times Interest Earned 19 A/P Days 20 21 Profitability Ratios 22 Profit Margin 23 Return on Assets 24 Return on Equity 25 Return on Invested Capital 26 27 Market / Valuation Ratios 28 Earnings Per Share (EPS) 29 Price/Earnings Ratio 30 Market Capitalization 31 COGS / Inv. A/R / Avg. Daily Sales Sales / TA Debt/Equity Debt/ Total Assets EBIT/Interst Exp. A/P/Avg. Daily COGS Net Income / Sales Net Income/TA Net Income/Equity EBIT (1-TR)/Invested Capital (use total liabs & equity for invested capital) Net Income / # Shares Share Price / EPS # Shares Share Price 32 33 Total Shareholder Return 34 35 N/A (Dividends + SPA)/Original Investment (spa share price appreciation) 36 1) What two things should always be done in conjuction with any ratio analysis? 37 38 2) What are some limitations / issues with ratio analysis? 39 40 41 1 2 3 (000's) B D E F H K Rush Creek Monthly Results January - Current Year Favorable or (Unfavorable) Versus: 4 5 Budget Last Year 6 Actual $ % $ % 7 Sales: 8 United States $ 180 (15) -8% 9 Europe $ 50 (7) -12% 10 Canada $ 20 (3) -13% 11 Total Sales $ 250 (25) -9% 2632 13% 14% 18% 13% 12 13 COGS: 14 Labor 15 Raw Materials 16 Production 17 Total COGS SASASALA $ $ $ $ 150 5285 50 20 15 4225 7% (5) -11% 9% (2) -11% 10% (10) -14% 9% (17) -16% 18 19 Other Expenses: 72222222 20 Selling 21 Advertising 22 Administrative $ 36 $ 12 $ 24 23 Total Expenses $ 72 3104 8% 8% 0% (4) -13% (2) -20% (2) -9% 5% (8) -13% 24 Operating Income $ 28 $ (6) -18% $ 4 17% 26 28 Comments