Acme Dynamite & Roadrunner Control Company, Inc. Balance Sheet as of December 31, 2015 (in millions of dollars) 2015 2014 2015 2014 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable Accrued wages and taxes $316 securities Accounts receivable Inventory $421 5400 Accounts payable 867 $300 823.65 1,109 1,053.55 Notes payable 872 8284 1,760 1,672 Total $2.055 $1,952 Total $3,290 $3,126 Long-term debt: $3,090 $2,936 Fixed assets: Gross plant and Stockholders' equity: equipment Less: Depreciation $5,812 840 $5.521 Preferred stock (30 million shares) 60 57 798 Common stock and paid-in Net plant and surplus (200 million shares) 637 605.15 equipment $4,972 $4,723 Retained earnings 3312 3,146.4 Other long-term assets 892 Total $5,864 847.4 $5.571 Total $4,009 $3,809 Total assets $9,154 $8,696 Total liabilities and equity $9,154 $8,696 Acme Dynamite & Roadrunner Control Company, Inc. Income Statement for Years Ending December 31, 2015 Net sales Less: Cost of goods sold Gross profits Less: Other operating expenses (in millions of dollars) 2015 $4,980 2,246 $2,734 125 Earnings before interest, taxes, depreciation, and amortization (EBITDA) 2,609 Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income 200 2,409 $315 $2,094 767 $1.327 Less: Preferred stock dividends Net income available to common stockholders Less: Common stock dividends $60 $1,267 395 Addition to retained earnings Per (common) share data: Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Market value (price) per share (MVPS) Average Tax Rate Additional Information No. Shares Market Value of Common Shares 200 $5,370 10% Income Statement Datic Weighted Average Cost of Capital (WACC) Balance Sheet $872 $6.34 1.975 19.745 26.850 36.6% Market Value Liquidity FINANCIAL RATIO ANALYSIS Instructions: Perform the analyses described in each of the fiv1. Calculate values for Financial Ratio Market-to-book ratio PE ratio Current ratio Type Market Value 2015 using formulas that refer to the Balance Sheet and Income Statement pages. Do not type in numbers. Value Quick ratio Liquidity Cash ratio Liquidity times times times times times Inventory turnover (sales) Asset Management Days' sales in inventory (sales) Asset Management 2.83 times 129.00 days Average collection period Asset Management 81.28 days Accounts payable turnover Fixed asset turnover Total asset turnover Asset Management Asset Management 2.59 times 1.00 times Asset Management 0.544 times Capital intensity Debt ratio Debt-to-equity (total debt) Times interest earned Cash coverage Profit margin Profitability Gross profit margin Profitability Operating profit margin Profitability Basic earnings power Profitability ROA Profitability ROE Profitability Dividend payout ROA (ROS x Total Asset Turnover) ROE (ROA x equity multiplier) Extended Dupont Profitability Basic Dupont Asset Management 1.84 times Debt Management Debt Management Equity multiplier (common equity) Debt Management Debt Management Debt Management times Etimes times times EVA NOPAT Operating cash flow Free Cash Flow Balance Sheet Income Statomont EVA Cash Flow Cash Flow Cash Flow fivt Calculate values for 2015 using formulas that refer to the Balance Sheet and Income Statement pages. Do not type in numbers Value 2 If higher values make the company more attractive to invest in, choose "True", else, "False". 3. Compare the value for this ratio to the industry, if the value is better than the industry, choose Strong. else choose Weak. 4. Describe what this value means to an investor in this company or the question it raises, Industry Average More Better? Strong/Weal Question/Interpretation times 13 times times 4.1 times times 2 times times 1.2 times times 0.25 times 2.83 times 2.5 times TRUE Strong Every dollar of inventory supports more sales than average. 129.00 days 146 days FALSE Weak 81.28 days 91 days 2.59 times 3.65 times 1.00 times 1.25 times 0544 times 0.5 times 1.84 times 2 times 50.00% times 1 times times 2 times times 725 times times times 18.75% 49.16% 42.02% 19.90% 9.38% 18.75% 35.00% 9.38% 10.75% NA NA NA NA 0 E Market Value & Liquidity Asset Management Debt Management Profitability DuPont, EVA, CF Overall? Recommendation Balance Sheet Income Statement Ratios 15 Review the your results above and decide whether you recommend investing in this company based on