- Calculate the following ratios and trend analyses on each company (Q2 2019):
- Ratio analysis, to include the following ratios:
- Profit Margin
- Return on Assets
- Return on equity
- Receivable Turnover
- Average Collection period
- Inventory turnover
- Current ratio
- Working Capital
- Debt to total assets
- Debt to equity
- Earnings per share
- Price to Earnings ratio
- Horizontal, vertical, and trend analysis of financial statements
DEERE & COMPANY STATEMENT OF CONSOLIDATED INCOME For the Six Months Ended April 28, 2019 and April 29, 2018 (In millions of dollars and shares except per share amounts) Unaudited 2019 2018 $ $ Net Sales and Revenues Net sales Finance and interest income Other income Total 17,213.7 1,652.7 459.6 19,326.0 15,721.0 1,476.8 435.7 17,633.5 Costs and Expenses Cost of sales Research and development expenses Selling, administrative and general expenses Interest expense Other operating expenses Total 13,186.3 863.8 1,710.6 703.8 710.9 17,175.4 12,037.8 772.0 1,644.3 590.0 687.8 15,731.9 Income of Consolidated Group before Income Taxes Provision for income taxes Income of Consolidated Group Equity in income of unconsolidated affiliates Net Income Less: Net income attributable to noncontrolling interests Net Income Attributable to Deere & Company 2,150.6 527.5 1,623.1 12.8 1,635.9 2.5 1,633.4 1,901.6 1,234.7 666.9 8.0 674.9 1.7 673.2 $ $ Per Share Data Basic Diluted $ $ 5.13 5.07 $ $ 2.08 2.05 Average Shares Outstanding Basic Diluted 318.1 322.4 323.4 328.4 See Condensed Notes to Interim Consolidated Financial Statements. DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEET (In millions of dollars) Unaudited April 28 October 28 2018 April 29 2018 $ $ 3,904.0 490.1 21.7 Assets Cash and cash equivalents Marketable securities Receivables from unconsolidated affiliates Trade accounts and notes receivable - net Financing receivables - net Financing receivables securitized - net Other receivables Equipment on operating leases - net Inventories Property and equipment - net Investments in unconsolidated affiliates Goodwill Other intangible assets - net Retirement benefits Deferred income taxes Other assets Total Assets 3,483.7 545.1 34.1 7,519.3 25,870.3 4,813.6 1,477.7 7,039.9 7,160.9 5,757.1 234.8 3,024.9 1,475.9 1,382.7 1,038.9 1,870.7 72,729.6 5,004.3 27,054.1 4,02 1.4 1,735.5 7,165.4 6,148.9 5,867.5 207.3 3,100.7 1,562.4 1,298.3 808.0 1,718.4 70,108.0 $ 4,201.4 479.3 34.3 6,511.1 24,275.5 4,436.3 1,398.2 6,723.1 6,888.9 5,742.9 202.1 3,188.7 1,692.2 617.9 1,718.5 1,762.6 $ 69,873.0 $ $ Liabilities and Stockholders' Equity $ $ $ Liabilities Short-term borrowings Short-term securitization borrowings Payables to unconsolidated affiliates Accounts payable and accrued expenses Deferred income taxes Long-term borrowings Retirement benefits and other liabilities Total liabilities 11,761.8 4,702.2 199.5 9,625.8 513.5 28,255.4 5,733.1 60,791.3 11,061.4 3,957.3 128.9 10,111.0 555.8 27,237.4 5,751.0 58,802.8 10,894.6 4,401.1 145.7 9,789.6 562.7 26,278.6 7,366.1 59,438.4 Redeemable noncontrolling interest 14.3 14.0 14.6 10,410.3 Stockholders' Equity Total Deere & Company stockholders' equity Noncontrolling interests Total stockholders' equity Total Liabilities and Stockholders' Equity 9.7 11,919.5 4.5 11,924.0 72,729.6 11,287.8 3.4 11,291.2 70,108.0 10,420.0 $ 69,873.0 $ $ See Condensed Notes to Interim Consolidated Financial Statements. DEERE & COMPANY STATEMENT OF CONSOLIDATED CASH FLOWS For the Six Months Ended April 28, 2019 and April 29, 2018 (In millions of dollars) Unaudited 2019 2018 $ 1,635.9 $ 674.9 36.6 1,016.5 44.4 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash used for operating activities: Provision for credit losses Provision for depreciation and amortization Share-based compensation expense Gain on sales of businesses Undistributed earnings of unconsolidated affiliates Provision (credit) for deferred income taxes Changes in assets and liabilities: Trade, notes, and financing receivables related to sales Inventories Accounts payable and accrued expenses Accrued income taxes payable/receivable Retirement benefits Other Net cash used for operating activities 26.8 950.8 39.8 (13.2) (4.5) 604.3 (8.6) (282.2) (2,731.3) (1,394.3) (66.4) 157.0 20.3 77.3 (1,494.8) (2,094.1) (1,796.8) 306.9 153.0 67.6 (135.6) (1,220.1) 9,175.3 30.3 823.4 (8,886.7) Cash Flows from Investing Activities Collections of receivables (excluding receivables related to sales) Proceeds from maturities and sales of marketable securities Proceeds from sales of equipment on operating leases Proceeds from sales of businesses, net of cash sold Cost of receivables acquired (excluding receivables related to sales) Acquisitions of businesses, net of cash acquired Purchases of marketable securities Purchases of property and equipment Cost of equipment on operating leases acquired Other Net cash used for investing activities 8,780.9 23.8 748.6 55.0 (8,181.2) (5,171.1) (62.8) (352.2) (926.5) (73.2) (5,158.7) (59.6) (490.9) (924.1) (39.9) (372.2) Cash Flows from Financing Activities Increase in total short-term borrowings Proceeds from long-term borrowings Payments of long-term borrowings Proceeds from issuance of common stock Repurchases of common stock Dividends paid Other Net cash provided by financing activities 1,570.4 4,232.2 (3,426.8) 94.7 (480.4) (462.3) (55.6) 1,472.2 199.1 4,077.7 (2,888.7) 198.6 (60.6) (386.9) (43.9) 1,095.3 Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash (34.8) 145.9 Net Decrease in Cash, Cash Equivalents, and Restricted Cash Cash, Cash Equivalents, and Restricted Cash at Beginning of Period Cash, Cash Equivalents, and Restricted Cash at End of Period (429.6) 4,015.3 3,585.7 (5,137.6) 9,466.8 4,329.2 $ $ See Condensed Notes to Interim Consolidated Financial Statements
