Calculate Ratios from chapter 28, page 740, table 28.10. Use the Biogen Financial Statement of recent year (2019)

28.2 does so. You can see that starting in 2007 Home Depers ROA = asset turnover X operating profit margin. The figure shows that the sales that the return on assets had increased steadily. What accounts for that improvement? We know than figures in earlier years. downturn in the housing market, but until then the company's company generated per dollar of assets declined. The progress in ROA came from the sot increase in profit margins brought about by the company's aggressive cost-cutting campaign the equivalent mance assets. Home Depots ad sales per dollar of assets and earned less conservatively financed than Lowes, but It may also be helpful to compare Home Depot's financial profitability was hit by the Home Depot Lowe's 28.10 nancial ome 15,723 2.0 -188 8.4% 10.2% 6.2% 50,652 3.8 1,738 15.5% 20.6% 10.7% 1. es sell elv- arty, Performance Measures: Market value added (millions) Market-to-book ratio EVA ($ millions) Return on capital (ROC), % Return on equity (ROE), % Return on assets (ROA), % Efficiency Measures: Asset turnover Inventory turnover Days in inventory Receivables turnovera Average collection period (days) 1.75 4.3 1.49 3.9 84 92 64.9 260 1.4 5.6 5.52% 6.08% 3.66% 4.14% .38 .30 .51 Profit margin, % Operating profit margin, % Leverage Measures: Long-term debt ratio Total debt ratio Times-interest-earned Cash coverage ratio Liquidity Measures: Net-working-capital-to-total-assets ratio Current ratio Quick ratio Cash ratio .56 11.0 13.6 8.8 12.8 .127 1.55 .065 1.28 .188 .344 .212 .165 une apparently puzzling discrepancy between the two firms is the dramatic difference in the receivables turnover and d. With an average collection period of just over a day, Lowe's appears to be far more efficient at collecting its bills on. The notes to Lowes financial statements reveal that the company finances most of its recrimhle by selling them unt. The lesson? Ratio A B C D 1 Biogen Financials 2019 common size 2019 common size 2018 2 sales 14,377,900 79.15% 80.93% 3 COGS 1,955,400 - 13.60% - 13.50% 4 Gross profit 12,422,500 86.40% 86.50% 5 R&D 2,280,600 -15.86% -19.31% 6 sales, marketing, other 241,600 -16.52% - 15.66% 7 operating profit 13,670,200 48.98% 43.77% 8 interest 120,000 0.83% 0.84% 9 taxes 187,400 -8.05% -10.60% 10 net income 5,888,500 40.96% 32.93% 11 12 A/R 2,485,400 6.90% 7.74% 13 inventory 929,900 11.92% 14.24% 14 other current assets 687,600 2.95% 3.68% 15 total current assets 7,640,900 30.78% 30.21% 16 fixed assets 3,601,200 12.95% 12.34% 17 goodwill 5,706,400 21.14% 22.56% 18 total fixed assets 5,398,600 100% 100% 19 20 other NIBL 1,389,400 4.95% 5.49% 21 total NIBL 8,962,100 33.16% 35.44% 22 current IBL 3,295,200 17.86% 13.03% 23 interested libailities 2,974,300 24 total IBL 12,257,300 51.02% 48.47% 25 shareholder equity 12,039,600 48.99% 51.53% 26 total IBL + NIBL + shareholder equity 33,259,000 - 28.2 does so. You can see that starting in 2007 Home Depers ROA = asset turnover X operating profit margin. The figure shows that the sales that the return on assets had increased steadily. What accounts for that improvement? We know than figures in earlier years. downturn in the housing market, but until then the company's company generated per dollar of assets declined. The progress in ROA came from the sot increase in profit margins brought about by the company's aggressive cost-cutting campaign the equivalent mance assets. Home Depots ad sales per dollar of assets and earned less conservatively financed than Lowes, but It may also be helpful to compare Home Depot's financial profitability was hit by the Home Depot Lowe's 28.10 nancial ome 15,723 2.0 -188 8.4% 10.2% 6.2% 50,652 3.8 1,738 15.5% 20.6% 10.7% 1. es sell elv- arty, Performance Measures: Market value added (millions) Market-to-book ratio EVA ($ millions) Return on capital (ROC), % Return on equity (ROE), % Return on assets (ROA), % Efficiency Measures: Asset turnover Inventory turnover Days in inventory Receivables turnovera Average collection period (days) 1.75 4.3 1.49 3.9 84 92 64.9 260 1.4 5.6 5.52% 6.08% 3.66% 4.14% .38 .30 .51 Profit margin, % Operating profit margin, % Leverage Measures: Long-term debt ratio Total debt ratio Times-interest-earned Cash coverage ratio Liquidity Measures: Net-working-capital-to-total-assets ratio Current ratio Quick ratio Cash ratio .56 11.0 13.6 8.8 12.8 .127 1.55 .065 1.28 .188 .344 .212 .165 une apparently puzzling discrepancy between the two firms is the dramatic difference in the receivables turnover and d. With an average collection period of just over a day, Lowe's appears to be far more efficient at collecting its bills on. The notes to Lowes financial statements reveal that the company finances most of its recrimhle by selling them unt. The lesson? Ratio A B C D 1 Biogen Financials 2019 common size 2019 common size 2018 2 sales 14,377,900 79.15% 80.93% 3 COGS 1,955,400 - 13.60% - 13.50% 4 Gross profit 12,422,500 86.40% 86.50% 5 R&D 2,280,600 -15.86% -19.31% 6 sales, marketing, other 241,600 -16.52% - 15.66% 7 operating profit 13,670,200 48.98% 43.77% 8 interest 120,000 0.83% 0.84% 9 taxes 187,400 -8.05% -10.60% 10 net income 5,888,500 40.96% 32.93% 11 12 A/R 2,485,400 6.90% 7.74% 13 inventory 929,900 11.92% 14.24% 14 other current assets 687,600 2.95% 3.68% 15 total current assets 7,640,900 30.78% 30.21% 16 fixed assets 3,601,200 12.95% 12.34% 17 goodwill 5,706,400 21.14% 22.56% 18 total fixed assets 5,398,600 100% 100% 19 20 other NIBL 1,389,400 4.95% 5.49% 21 total NIBL 8,962,100 33.16% 35.44% 22 current IBL 3,295,200 17.86% 13.03% 23 interested libailities 2,974,300 24 total IBL 12,257,300 51.02% 48.47% 25 shareholder equity 12,039,600 48.99% 51.53% 26 total IBL + NIBL + shareholder equity 33,259,000