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Posted on Jul 15, 2024

c. Create a spreadsheet similar to Table 3.10 to perform the following analysis: (1) Create a table that reflects both 2019 and 2018 operating ratios

c. Create a spreadsheet similar to Table 3.10 to perform the following analysis: (1) Create a table that reflects both 2019 and 2018 operating ratios for Dayton Inc., segmented into (a) liquidity, (b) activity, (e) debt, (d) profitability, and (e) market. Assume that the current market price for the stock is $90. (2) Compare the 2019 ratios to the 2018 ratios. Indicate whether the results "outperformed the prior year" or "underperformed relative to the prior year." TABLE 3.10 Summary of Wales 2015-2016 In 2016 2013 1916 2016 20 14 OK 52 7.5 15.5 E. CE T 24 OK Ta OK . 1.5 CHE NA Y 2016 2016 2011 ca hay . 14.41 39 61% Op margin 219 Neriman 51.14 NA NA OK Feshare Number of shares of commanding . 31 OW Rawal ROA 15.7 1415 OK Good Reum Contacquiry Marker 152 17.83 OK OK Pricing ati Market price per show on stock Emin per dare Market pricepere of cook Book wale per share of common stock OK OK Marketak ( Mario TABLE 3.10 Summary of Whole Foods' Ratios (2015-2016, Including 2016 Industry Averages) Evaluation Ratio Liquidity Formula Year Industry average 2016 Cross- sectional 2016 2015 2016 Time-series 2015-2016 Over Current ratio 1.23 1.47 Current assets Current liabilities Current assets - Inventory Current liabilities 1.32 OK OK OK Quick (acid-test) ratio 0.83 1.09 0.76 OK OK OK Activity Inventory turnover 19.9 19.9 11.1 OK OK OK Average collection period 5.2 days 5.6 days 7.5 days OK OK ON Cost of goods sold Inventory Accounts receivable Average sales per day Accounts payable Average purchases per day Sales Total assets Average payment period 15.4 days 15.5 days 17.1 days OK OK OE Total assets turnover 2.68 2.48 2.4 OK Watch o Debt Debt ratio 34% 49% 60.0% OK Watch C Total liabilities Total assets Total liabilities Common stock equity 0.52 0.97 1.50 OK Watch Debt/equity ratio Times interest eamed ratio NA Earnings before interest and taxes Interest 20.9 4.3 OK OK Year Industry average 2016 Cros sectional 'Time-series 2016 2015-2016 Formula 2015 2016 Ratio Profitability Overall Gross profit margin 35.2% 34.4% 30.0% OK OK OK Gross profits Sales Operating profits Sales Operating profit margin 5.6% 5.4% 6.1% Watch Watch Watch Net profit margin 3.4% 3.2% 2.1% OK Watch OK Earnings per share (EPS) $1.54 $1.59 NA NA OK OK Earnings available for common stockholders Sales Earnings available for common stockholders Number of shares of common stock outstanding Earnings available for common stockholders Total assets Earnings available for common stockholders Common stock equity 9.3% 8.0% Return on total assets (ROA) 3.1% OK Watch Watch 14.2% 13.8% 15.7% Good Return on equity (ROE) OK Good Market 20.69 17.83 15.2 OK Watch OK Price/earnings (P/E) ratio Market price per share of common stock Earnings per share Market price per share of common stock Book value per share of common stock 2.93 2.60 2.80 OK OK Watch Market/book (M/B) ratio gebiet c. Create a spreadsheet similar to Table 3.10 to perform the following analysis: (1) Create a table that reflects both 2019 and 2018 operating ratios for Dayton Inc., segmented into (a) liquidity, (b) activity, (e) debt, (d) profitability, and (e) market. Assume that the current market price for the stock is $90. (2) Compare the 2019 ratios to the 2018 ratios. Indicate whether the results "outperformed the prior year" or "underperformed relative to the prior year." TABLE 3.10 Summary of Wales 2015-2016 In 2016 2013 1916 2016 20 14 OK 52 7.5 15.5 E. CE T 24 OK Ta OK . 1.5 CHE NA Y 2016 2016 2011 ca hay . 14.41 39 61% Op margin 219 Neriman 51.14 NA NA OK Feshare Number of shares of commanding . 31 OW Rawal ROA 15.7 1415 OK Good Reum Contacquiry Marker 152 17.83 OK OK Pricing ati Market price per show on stock Emin per dare Market pricepere of cook Book wale per share of common stock OK OK Marketak ( Mario TABLE 3.10 Summary of Whole Foods' Ratios (2015-2016, Including 2016 Industry Averages) Evaluation Ratio Liquidity Formula Year Industry average 2016 Cross- sectional 2016 2015 2016 Time-series 2015-2016 Over Current ratio 1.23 1.47 Current assets Current liabilities Current assets - Inventory Current liabilities 1.32 OK OK OK Quick (acid-test) ratio 0.83 1.09 0.76 OK OK OK Activity Inventory turnover 19.9 19.9 11.1 OK OK OK Average collection period 5.2 days 5.6 days 7.5 days OK OK ON Cost of goods sold Inventory Accounts receivable Average sales per day Accounts payable Average purchases per day Sales Total assets Average payment period 15.4 days 15.5 days 17.1 days OK OK OE Total assets turnover 2.68 2.48 2.4 OK Watch o Debt Debt ratio 34% 49% 60.0% OK Watch C Total liabilities Total assets Total liabilities Common stock equity 0.52 0.97 1.50 OK Watch Debt/equity ratio Times interest eamed ratio NA Earnings before interest and taxes Interest 20.9 4.3 OK OK Year Industry average 2016 Cros sectional 'Time-series 2016 2015-2016 Formula 2015 2016 Ratio Profitability Overall Gross profit margin 35.2% 34.4% 30.0% OK OK OK Gross profits Sales Operating profits Sales Operating profit margin 5.6% 5.4% 6.1% Watch Watch Watch Net profit margin 3.4% 3.2% 2.1% OK Watch OK Earnings per share (EPS) $1.54 $1.59 NA NA OK OK Earnings available for common stockholders Sales Earnings available for common stockholders Number of shares of common stock outstanding Earnings available for common stockholders Total assets Earnings available for common stockholders Common stock equity 9.3% 8.0% Return on total assets (ROA) 3.1% OK Watch Watch 14.2% 13.8% 15.7% Good Return on equity (ROE) OK Good Market 20.69 17.83 15.2 OK Watch OK Price/earnings (P/E) ratio Market price per share of common stock Earnings per share Market price per share of common stock Book value per share of common stock 2.93 2.60 2.80 OK OK Watch Market/book (M/B) ratio gebiet