a. Discuss the findings from your ratio analysis both within StilSim and compared to the competitor. Include the charts from Financial Performance Analysis to help you identify problem areas and trends that are good or troublesome.

b. Use those charts to compare the differences in ratios between StilSim and the competitor. The target audience will be Bill Simmons and other employees at StilSim. This assignment constitutes a part of your strategic plan.

c. In your Strategic plan, describe the purpose on the Financial Performance Interpretation in the introductory paragraph. Why is this important to StilSims strategic plan? What is ratio analysis? What are the key areas you are going to analyze? Then address the following:

Short-Term Liquidity

Give a short overview of short-term liquidity ratios. What do they measure and why it is important?

a. Short-term ratio. Compare Current Ratio and Cash Ratio (text page 495 & 496). What does each ratio measure? How is StilSim performing versus the competition?

Insert a chart or graph showing the data for both StilSim and the competitor. It is said that a picture is worth 1,000 words. With financial analysis, a graph is much easier to comprehend than a long narrative description. Normally a bar graph or a line graph works best for this data. Choose the strongest format and title the graph.

i. Strength or Weakness. Is this area of StilSims financials a strength or weakness (or possibly neutral)? What are the implications of your findings to StilSims future viability and future strategic plan?

Long-Term Solvency

Give a short overview of long-term solvency ratios (text pg 496 & 497). What do they measure and why it is important?

b. Long-term ratio. Compare Total Debt Ratio and Cash Coverage Ratio. What does each ratio measure? How is StilSim performing versus the competition?

Insert a chart or graph showing the data for both StilSim and the competitor.

i. Strength or Weakness. Is this area of StilSims financials a strength or weakness (or possibly neutral)? What are the implications of your findings to StilSims future viability and future strategic plan?

Asset Management

Give a short overview of asset management ratios (text pg 497 & 498). What do they measure and why it is important?

c.Asset management ratio. Compare Receivables Turnover and Days in Receivables Ratios What do these ratios measure? How is StilSim performing versus the competition?

Insert a chart or graph showing the data for both StilSim and the competitor.

i. Strength or Weakness. Is this area of StilSims financials a strength or weakness (or possibly neutral)? What are the implications of your findings to StilSims future viability and future strategic plan?

Compare Dividend Payout vs Retained Earnings for StilSim and competitor.

Strength or Weakness for StilSim? What are the future implications for StilSim if dividend policy changes are not made?

Profitability Measures

Give a short overview of profitability measures (text pg 498-500). What do they measure and why it is important?

d. Profitability measure. Start with a Profit Margin trend comparison between StilSim and competitor. What does it measure? How is StilSim performing versus the competition?

Insert a chart or graph showing the data for both StilSim and the competitor.

i. Strength or Weakness. Is this area of StilSims financials a strength or weakness (or possibly neutral)? What are the implications of your findings to StilSims future viability and future strategic plan?

e. ROE & ROA Compare ROE/ROA between StilSim and the competitor.

f. Branch profitability. How are StilSims various branches performing relative to each other?

Insert a chart or graph showing the data for StilSims branch productivity.

i. Implications. What are the possible implications of your findings to StilSim future viability and future strategic plan?

3. Cite your references.

4. Use the Financial Performance Interpretation template to develop your report. Address the following in the Summary of Financial Performance Interpretation in your report:

a. Which short-term issues will require attention before long-term strategies might be considered? Where does StilSim have a competitive advantage? Disadvantage?

1/7/16	2011	2012	2013	2014	2015	2016	2011	2012	2013	2014	2015
	StilSim	StilSim	StilSim	StilSim	StilSim	estimate	StaffAces	StaffAces	StaffAces	StaffAces	StaffAces
Income Statement
Revenue
Permenant Placement
Revenue	1,930,425	3,090,221	2,916,957	3,485,488	3,165,996	3,136,726
Temporary Placement
Revenue	0	0	0	1,168,369	918,138	790,818
Direct labor expense	0	0	0	719,877	556,967	467,757
Net revenue	0	0	0	448,492	361,171	323,061
Revenue - other	0	0	0	0	0	0
Total Revenue	1,930,425	3,090,221	2,916,957	3,933,980	3,527,167	3,459,787	10,184,180	11,493,670	13,160,130	13,895,000	16,689,290
Expenses
Salary	694,008	1,034,934	1,067,018	1,464,694	1,511,565	1,564,471
Bonus	166,435	290,099	273,509	353,521	318,405	312,564
Burden	274,133	408,797	421,471	578,552	597,065	617,965
Wages & burden	1,134,576	1,733,830	1,761,998	2,396,767	2,427,035	2,495,000	2,622,000	2,588,000	2,828,280	3,004,590	3,622,480
Rent	58,800	93,700	93,700	138,900	138,900	138,900
Utilities	25,832	47,078	48,537	73,221	75,564	78,210
Accounting services	5,095	8,370	8,630	12,266	12,658	13,087
Advertising	22,206	31,330	27,339	35,962	31,381	27,870
Travel & entertainment	59,472	115,829	117,902	178,511	184,183	190,112
Supplies & equipment	21,884	37,576	38,727	52,860	54,535	55,866
Postage & express	25,964	41,804	43,043	59,040	60,853	60,480
Training & development	380	430	2,346	2,308	2,393	2,520
Memberships	1,940	2,310	2,380	2,920	3,010	3,100
Insurance	71,545	119,271	122,865	165,268	170,418	171,866
Miscellaneous	5,696	12,481	6,801	12,244	8,216	8,396
Interest	13,821	20,842	20,182	44,184	43,844	43,564	14,910	15,150	12,070	11,300	12,480
Depreciation & amort	4,749	24,098	26,161	41,620	38,289	38,818	170,300	164,700	163,800	189,000	204,720
Total Expense	1,451,960	2,288,949	2,320,611	3,216,071	3,251,279	3,327,789	10,042,770	11,202,050	12,666,890	13,348,900	16,079,920
Income before tax	478,465	801,272	596,346	717,909	275,888	131,998	141,410	291,620	493,240	546,100	609,370
Taxes	191,587	320,845	238,788	287,465	110,470	52,853	53,440	93,230	185,330	209,800	160,130
Net Income	286,878	480,427	357,558	430,444	165,418	79,145	87,970	198,390	307,910	336,300	449,240
Balance Sheet
Assets
Cash & S/T investments	1,649,072	1,672,276	1,875,691	1,816,561	2,044,504	1,894,497	1,243,770	1,631,530	1,093,110	1,295,130	1,220,030
Accounts receivable	634,337	1,090,415	1,062,599	1,377,484	1,103,509	1,136,886	1,052,400	1,086,900	1,538,700	1,672,900	1,995,100
Total current	2,283,409	2,762,691	2,938,290	3,194,045	3,148,013	3,031,383	2,296,170	2,718,430	2,631,810	2,968,030	3,215,130
Furniture	20,984	32,110	34,784	51,755	51,755	53,792
Leasehold improvements	109,228	180,833	192,970	231,000	231,000	231,000
Computers & copiers	15,218	26,919	29,342	44,581	48,241	53,048
less depreciation	(137,837)	(161,935)	(188,096)	(229,716)	(268,005)	(306,823)
	7,593	77,927	69,000	97,620	62,991	31,017
Goodwill	0	0	0	762,976	762,976	762,976
Total Assets	2,291,002	2,840,617	3,007,289	4,054,641	3,973,979	3,825,376	5,181,290	5,464,660	5,607,690	6,017,430	7,194,610
Liabilities
Accounts payable	104,242	166,871	157,515	212,434	190,466	186,828	180,290	187,760	258,620	272,920	298,500
Short-term debt	75,000	100,000	100,000	200,000	200,000	200,000
Total current	179,242	266,871	257,515	412,434	390,466	386,828	848,350	859,230	1,122,890	1,135,560	1,214,090
Long-term debt	105,000	210,000	210,000	510,000	510,000	510,000	0	0	0	0	296,560
Total Liabilities	284,242	476,871	467,515	922,434	900,466	896,828	2,326,970	2,337,590	2,671,900	2,681,000	3,261,010
Equity
Common stock, $1 par	726,120	726,120	726,120	896,445	896,445	896,445
Capital surplus	871,344	871,344	871,344	1,131,940	1,131,940	1,131,940
Retained earnings	409,296	766,282	942,310	1,103,822	1,045,128	900,163	2,831,560	3,098,000	2,909,350	3,309,000	3,913,260
Total Equity	2,006,760	2,363,746	2,539,774	3,132,207	3,073,513	2,928,548	2,854,320	3,127,070	2,935,790	3,337,000	3,933,600
Total Liabilities & Equity	2,291,002	2,840,617	3,007,289	4,054,641	3,973,979	3,825,376
Dividends $ per share	0.14	0.17	0.25	0.30	0.25	0.25
Dividends $	101,656	123,440	181,530	268,933	224,111	224,111	0	0	0	0	0
Balance - check sum	0	0	0	0	0	0
Sources of Funds
Net income	286,878	480,427	357,558	430,444	165,418	79,145
Depreciation	4,749	24,098	26,161	41,620	38,289	38,818
Accounts payable	(1,014)	62,629	(9,356)	54,919	(21,968)	(3,638)
Short-term debt, net	0	25,000	0	100,000	0	0
Long-term debt, net	0	105,000	0	300,000	0	0
Equity	0	0	0	430,921	0	0
Total	290,613	697,154	374,363	1,357,904	181,739	114,325
Uses of Funds
Cash, net	88,413	23,204	203,415	(59,130)	227,943	(150,007)
Accounts receivable	94,771	456,078	(27,816)	314,885	(273,975)	33,377
Furniture	1,951	11,126	2,674	16,971	0	2,037
Leasehold improvements	0	71,605	12,137	38,030	0	0
Computers & copiers	3,822	11,701	2,423	15,239	3,660	4,807
Other assets	0	0	0	762,976	0	0
Dividends	101,656	123,440	181,530	268,933	224,111	224,111
Total	290,613	697,154	374,363	1,357,904	181,739	114,325
Sources - check sum	0	0	0	0	0	0
Stockholders, shares
Bill Simmons	277,898	277,898	277,898	277,898	277,898	277,898
Stillman Trust	197,218	197,218	197,218	197,218	197,218	197,218
Ebenezer Investments	0	0	0	170,325	170,325	170,325
Publicly traded	251,004	251,004	251,004	251,004	251,004	251,004
Shares outstanding	726,120	726,120	726,120	896,445	896,445	896,445	430,140	435,400	423,220	398,620	405,020
Ratio Analysis
Short-term Liquidity Ratios
Current ratio	12.7	10.4	11.4	7.7	8.1	7.8	2.7	3.2	2.3	2.6	2.6
Cash ratio	9.2	6.3	7.3	4.4	5.2	4.9	1.5	1.9	1.0	1.1	1.0
Long-term Solvency Ratios
Total debt ratio	0.12	0.17	0.16	0.23	0.23	0.23	0.45	0.43	0.48	0.45	0.45
Debt-equity ratio	0.14	0.20	0.18	0.29	0.29	0.31	0.82	0.75	0.91	0.80	0.83
Equity multiplier	1.14	1.20	1.18	1.29	1.29	1.31	1.82	1.75	1.91	1.80	1.83
Times interest earned	35.6	39.4	30.5	17.2	7.3	4.0	10.5	20.2	41.9	49.3	49.8
Cash coverage ratio	36.0	40.6	31.8	18.2	8.2	4.9	21.9	31.1	55.4	66.1	66.2
Asset Utilization Ratios
Receivable turnover	3.0	2.8	2.7	2.9	3.2	3.0	9.7	10.6	8.6	8.3	8.4
Days revenue in A/R	120	129	133	128	114	120	38	35	43	44	44
Total asset turnover	0.84	1.09	0.97	0.97	0.89	0.90	1.97	2.10	2.35	2.31	2.32
Capital intensity	1.19	0.92	1.03	1.03	1.13	1.11	0.51	0.48	0.43	0.43	0.43
Retained earnings, %	65%	74%	49%	38%	-35%	-183%	100%	100%	100%	100%	100%
Dividend payout, %	35%	26%	51%	62%	135%	283%	0%	0%	0%	0%	0%
Profitability Ratios
Profit margin, %	14.9%	15.5%	12.3%	10.9%	4.7%	2.3%	0.9%	1.7%	2.3%	2.4%	2.7%
Return on assets (ROA)	12.5%	16.9%	11.9%	10.6%	4.2%	2.1%	1.7%	3.6%	5.5%	5.6%	6.2%
Return on equity (ROE)	14.3%	20.3%	14.1%	13.7%	5.4%	2.7%	3.1%	6.3%	10.5%	10.1%	11.4%
Revenue growth, %	x	60.1%	-5.6%	34.9%	-10.3%	-1.9%	X	12.9%	14.5%	5.6%	20.1%
Expense growth, %	x	57.6%	1.4%	38.6%	1.1%	2.4%	X	11.5%	13.1%	5.4%	20.5%
Labor expense growth, %	x	52.8%	1.6%	36.0%	1.3%	2.8%	X	-1.3%	9.3%	6.2%	20.6%
Earnings per share, $	0.40	0.66	0.49	0.48	0.18	0.09	0.20	0.46	0.73	0.84	1.11
StilSim 1.4 Ratio Analysis
12/8/2015