Analyze the three cases presented using the ratios from your reading or outside sources. In your analysis, answer the following questions:

Are the companies doing well?

What types of firms are these?

Is seasonality in existence?

What is happening at the company using the ratios given and an evaluation over time and industry?

What type of industry is this likely to be?

What is the financial condition?

What ratios need to improve and how? Which ones are solid and why?

1) Schmidt Sportswear:

C= company I= Industry

Year X Year Y Year Z

Growth in Sales C NMF 25% 25%

I NMF 10% 12%

Profit Margin C 7.28% 6.13% 6.48%

I 7.82% 7.83% 7.98%

ROA C 8.02% 6.70% 5.54%

I 7.98% 8.79% 8.99

ROE C 15.89% 14.21% 13.98%

I 14.28% 15.62% 16.03%

Receivables Turn C 7.05X 5.80X 5.22X

I 9.03X 8.88X 9.32X

Average Collection C 52 days 63 days 68.1 days

I 40 days 41.3 days 39 days

Inventory Turnover C 5.23X 5.75X 6.48X

I 4.25X 5.12X 5.13X

Fixed Asset Turnover C 1.86X 1.97X 1.36X

I 1.63C 1.64X 1.77X

Total Asset Turnover C 1.1X 1.11X .89X

I 1.05X 1.12X 1.14X

2) Ratio Analysis - Taxman CPA

Year V Year W Year X Year Y Year Z

Current C 2.2 2.3 2.2 1.9 2.1

I 2.5 2.4 2.4 2 2.2

Quick C 1.9 1.9 2 1.7 1.8

I 2.2 2.2 2.2 1.8 2

Profit Margin C 33% 37% 32% 35% 35%

I 56% 55% 56% 48% 51%

EPS C NMF NMF NMF NMF NMF

I 2.25 2.19 1.95 2.11 2.25

P/E C NMF NMF NMF NMF NMF

I 18 17 15 15 12

Debt/Assets C 22% 21% 20% 20% 20%

I 64% 60% 66% 58% 60%

Inventory Turnover C 33times 34 times 30 times 28 times 33 times

I 22 times 21 times 20 times 20 times 18 times

Receivables Turnover C 15 times 15 times 12 times 15 times 14 times

I 4.5 times 2.36 times 2.2 times 3.7 times 2.8 times

ROW C 48% 49% 36% 55% 52%

I 36% 33% 24% 30% 29%

ROA C 9.40% 8.60% 7.10% 9% 8.40%

I 21% 19% 15% 12.50% 19%

NMF = not meaningful C = company I = industry

3) Wynn Bike Manufacturing Company

Wynn Industry

ROA 4.19% 5.76%

ROE 3.67% 7.00%

Receivables turnover 2.34X 4.86%

Profit margin 9.20% 10.36%

Inventory turnover 7X 6.56X

Fixed Asset turnover 1.76X 1.96X

Total Asset turnover .96X 1.23X

Current ratio 1.56X 1.45X

Quick ratio 1.16X 1.12X

Debt/Total assets 64.58% 25.60%