Question
Calculate the following financial indicators for the last five financial years. Answers including formula to compute the indicators must be provided. (i) Compounded average revenue
Calculate the following financial indicators for the last five financial years. Answers including formula to compute the indicators must be provided.
(i) Compounded average revenue (Sales) growth over 5 years
(ii) Compounded average net income growth over 5 years
(iii) Gross profit margin
(iv) Operating profit margin
(v) Asset turnover ratio
(vi) Return on revenue (Sales)
(vii) Return on equity
(viii) Return on total assets
(ix) Current ratio
(x) Debt ratio
------------------------------------------------------------------------------ Company A Income Statement
Fiscal Year | 2015 | 2016 | 2017 | 2018 | 2019 |
Period Ended | 31 Dec 2015 | 31 Dec 2016 | 31 Dec 2017 | 31 Dec 2018 | 31 Dec 2019 |
Period Length | 12 Months | 12 Months | 12 Months | 12 Months | 12 Months |
Source | ARS | ARS | ARS | ARS | ARS |
Revenue | 4,761.85 | 5,252.33 | 4,618.20 | 5,602.42 | 6,234.76 |
Total Revenue | 4,761.85 | 5,252.33 | 4,618.20 | 5,602.42 | 6,234.76 |
Selling/General/Admin. Expenses, Total | 328.78 | 326.33 | 346.71 | 376.19 | 471.86 |
Depreciation/Amortisation | 75.13 | 68.94 | 76.29 | 74.5 | 136.88 |
Unusual Expense (Income) | -4.97 | -27.73 | -28.09 | 0.75 | 10.31 |
Other Operating Expenses, Total | -30.5 | -27.4 | -302.32 | -61.46 | -339.11 |
Total Operating Expense | 3,171.85 | 3,600.60 | 2,198.29 | 2,416.83 | 2,155.93 |
Operating Income | 1,590.01 | 1,651.74 | 2,419.91 | 3,185.59 | 4,078.84 |
Interest Inc.(Exp.),Net-Non-Op., Total | 293.28 | 291.96 | 444.44 | 353.13 | 181.69 |
Other, Net | -44.53 | -36.79 | -48.83 | -30.22 | -32.06 |
Net Income Before Taxes | 1,838.76 | 1,906.90 | 2,815.53 | 3,508.50 | 4,228.47 |
Provision for Income Taxes | 343.5 | 402.63 | 468.95 | 658.69 | 814.83 |
Net Income After Taxes | 1,495.26 | 1,504.27 | 2,346.58 | 2,849.81 | 3,413.64 |
Net Income Before Extra. Items | 1,065.65 | 1,190.34 | 1,569.56 | 1,762.49 | 2,135.89 |
Net Income | 1,065.65 | 1,190.34 | 1,569.56 | 1,762.49 | 2,135.89 |
Income Available to Com Excl ExtraOrd | 1,065.65 | 1,190.34 | 1,569.56 | 1,762.49 | 2,135.89 |
Income Available to Com Incl ExtraOrd | 1,065.65 | 1,190.34 | 1,569.56 | 1,762.49 | 2,135.89 |
Diluted Net Income | 1,129.43 | 1,254.80 | 1,630.46 | 1,836.46 | 2,192.02 |
Diluted Weighted Average Shares | 4,769.84 | 4,766.94 | 4,742.10 | 4,705.62 | 5,004.08 |
Diluted EPS Excluding ExtraOrd Items | 0.24 | 0.26 | 0.34 | 0.39 | 0.44 |
DPS - Common Stock Primary Issue | 0.09 | 0.1 | 0.12 | 0.12 | 0.12 |
Diluted Normalised EPS | 0.24 | 0.26 | 0.34 | 0.39 | 0.44 |
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Company A Balance Sheet
Fiscal Year | 2015 | 2016 | 2017 | 2018 | 2019 |
Period Ended | 31 Dec 2015 | 31 Dec 2016 | 31 Dec 2017 | 31 Dec 2018 | 31 Dec 2019 |
Source | ARS | ARS | ARS | ARS | ARS |
Cash | 1,753.28 | 1,456.43 | 1,789.86 | 2,559.01 | 4,022.57 |
Short Term Investments | 2,400.02 | 3,351.08 | 4,315.46 | 2,500.83 | 2,145.04 |
Cash and Short Term Investments | 4,153.30 | 4,807.51 | 6,105.32 | 5,059.84 | 6,167.61 |
Accounts Receivable - Trade, Net | 374.23 | 468.23 | 460.71 | 251.9 | 341.62 |
Total Receivables, Net | 1,194.43 | 1,318.45 | 801.77 | 617.55 | 978.47 |
Prepaid Expenses | 186.88 | 269.47 | 307.26 | 869.57 | 640.43 |
Other Current Assets, Total | 155.61 | 532.76 | 1,120.77 | 770.77 | 1,113.42 |
Total Current Assets | 12,626.53 | 11,765.26 | 12,312.13 | 12,446.27 | 16,624.98 |
Property/Plant/Equipment, Total - Gross | 1,134.94 | 1,154.90 | 1,226.44 | 1,166.70 | 1,501.43 |
Accumulated Depreciation, Total | -326.61 | -373.47 | -386.42 | -414.05 | -442.45 |
Property/Plant/Equipment, Total - Net | 808.33 | 781.43 | 840.02 | 752.66 | 1,268.52 |
Goodwill, Net | - | - | - | - | - |
Intangibles, Net | 461.06 | 441.84 | 563.3 | 634.72 | 988.08 |
Long Term Investments | 32,613.42 | 31,972.30 | 46,684.88 | 49,625.58 | 61,728.07 |
Total Assets | 47,052.59 | 45,740.77 | 61,539.18 | 64,647.56 | 82,345.92 |
Accounts Payable | 167.89 | 155.94 | 271.11 | 221.49 | 282.15 |
Accrued Expenses | 2,004.66 | 1,974.06 | 1,343.60 | 1,544.27 | 2,216.65 |
Notes Payable/Short Term Debt | 1,762.48 | 710.64 | 1,250.63 | 1,729.47 | 2,501.03 |
Other Current liabilities, Total | 2,488.49 | 3,201.23 | 4,507.64 | 4,436.10 | 5,978.32 |
Total Current Liabilities | 6,930.32 | 7,728.40 | 8,861.34 | 9,395.32 | 12,427.18 |
Total Long Term Debt | 13,841.31 | 12,478.95 | 18,955.93 | 20,440.49 | 27,461.01 |
Total Debt | 16,110.58 | 14,876.11 | 21,694.93 | 23,633.95 | 31,411.06 |
Deferred Income Tax | 784.7 | 725.21 | 901.23 | 961.01 | 1,462.44 |
Other Liabilities, Total | 558.6 | 507.74 | 702.85 | 543.79 | 712.42 |
Total Liabilities | 29,147.29 | 28,135.93 | 43,126.29 | 45,694.85 | 58,986.45 |
Common Stock, Total | 6,309.29 | 6,309.50 | 6,309.50 | 6,309.50 | 9,327.42 |
Retained Earnings (Accumulated Deficit) | 10,755.21 | 11,469.72 | 12,539.21 | 13,862.06 | 15,369.08 |
Treasury Stock - Common | -72.72 | -107.22 | - | - | - |
Unrealised Gain (Loss) | 5.65 | 20.05 | 21.65 | 2.31 | 144.65 |
Other Equity, Total | 907.88 | -87.2 | -457.46 | -1,221.16 | -1,481.68 |
Total Equity | 17,905.31 | 17,604.85 | 18,412.89 | 18,952.71 | 23,359.47 |
Total Liabilities & Shareholders' Equity | 47,052.59 | 45,740.77 | 61,539.18 | 64,647.56 | 82,345.92 |
Total Common Shares Outstanding | 4,247.97 | 4,237.39 | 4,162.81 | 4,162.81 | 5,037.49 |
Tangible Book Value per Share, Common Eq | 4.11 | 4.05 | 4.29 | 4.4 | 4.44 |
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Company A Cash Flow
Fiscal Year | 2015 | 2016 | 2017 | 2018 | 2019 |
Period Ended | 31 Dec 2015 | 31 Dec 2016 | 31 Dec 2017 | 31 Dec 2018 | 31 Dec 2019 |
Source | ARS | ARS | ARS | ARS | ARS |
Net Income/Starting Line | 1,495.26 | 1,504.27 | 2,346.58 | 2,849.81 | 3,413.64 |
Depreciation/Depletion | 73.18 | 65.98 | 69.27 | 63.34 | 118.42 |
Non-Cash Items | -391.75 | -167.87 | -708.12 | -567.49 | -844.16 |
Cash Taxes Paid | 260.79 | 349.84 | 378.75 | 389.7 | 471.31 |
Changes in Working Capital | 1,287.26 | 1,899.88 | 424.41 | -1,799.09 | -482.33 |
Cash from Operating Activities | 2,466.65 | 3,305.22 | 2,139.16 | 557.74 | 2,224.04 |
Capital Expenditures | -64.02 | -75.94 | -149.28 | -89.35 | -81.47 |
Other Investing Cash Flow Items, Total | 218.1 | 4.56 | -1,620.78 | -1,266.26 | -277.05 |
Cash from Investing Activities | 154.08 | -71.38 | -1,770.05 | -1,355.60 | -358.52 |
Total Cash Dividends Paid | -384.07 | -383.03 | -424.71 | -504.09 | -520.21 |
Issuance (Retirement) of Stock, Net | 196.45 | -56.73 | 0 | -341.83 | 0 |
Cash from Financing Activities | -1,213.12 | -2,461.88 | 979.3 | -217.11 | -767 |
Foreign Exchange Effects | 39.63 | -128.63 | -46.66 | -59.78 | -41.88 |
Net Change in Cash | 1,447.23 | 643.33 | 1,301.75 | -1,074.75 | 1,056.64 |
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