Case 5.4 Hydrogenics Corporation

This case is a continuation of Cases 2.4, 3.4, and 4.4.

Open the financial statement template that you have saved from the Chapter 4 Hydrogenics Case. Click on the Ratios tab at the bottom of the screen and print out this page.

Using all information, data and your solutions from Cases 2.4, 3.4, and 4.4 and the ratios that have been calculated in the template, write a comprehensive analysis of the company. Your analysis should discuss the areas of short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability and market ratios. Identify strengths and weaknesses and give your opinion of the investment potential and creditworthiness of the firm.

Dec 31, 2013 Liquidity Ratios: C Shokanigum Liquiory) 1.40 times 0.84 times 0.12 times 1.33 times 0.87 times 0.46 times Current ratio Quick ratio Cash flow liquidity Average collection period Days inventory held Days payable outstanding Cash conversion cycle 41.00 days 155.00 days 38.00 days 158 days 58.00 days 164.00 days 73.00 days 149 days COPERATINA) Activity Ratios: Accounts receivable turnover Inventory turnover Payables turnover Fixed asset turnover Total asset turnover 8.98 times 2.37 times 9.74 times 25.19 times 1.06 times 6.31 times 2.23 times 5.00 times 22.66 times 0.76 times (Capira/L-TSOLVENCY) Leverage Ratios: Debt ratio Long-term debt to total capitalization Debt to equity Financial leverage (FL) Times interest earned Cash interest coverage Fixed charge coverage Cash flow adequacy 84.62 % 26.84 % 5.50 times 6.50 times (15.92) times (1148.63) times (4.67) times (6.90) times 89.72 % 23.02 % 8.72 times 9.72 times (37.16) times (386.67) times (9.17) times (1.59) times Profitability Ratios: Gross profit margin Operating profit margin Net profit margin Cash flow margin Return on assets (ROA) or Return on investment (ROI) Return on equity (ROE) Cash return on assets 28.44 % (15.99) % (21.00) % (21.68) % (22.23) % (144.59) % (22.95) % 16.56 % (38.57) % (40.37) % (3.67) % (30.56) % (297.12) % (2.78) % (1.04) $ Market Ratios: Earnings per share Price-to-earnings Dividend payout Dividend yield (1.74) I NM NM 13