f. Perform a common size analysis and percentage change analysis. What do these analyses tell you about CATS?

20y5E Ratio Analysis Current Quick Inventory turnover Days sales outstanding Fixed assets turnover Total assets turnover Debt ratio Liabilities-to-assets ratio Times interest earned EBITDA coverage Profit margin Basic earning power Return on assets Return on equity Price/earnings (P/E) Price/cash flow Market/Book 20y3 2.33 0.85 4.00 37.3 9.95 2.34 35.6% 54.8% 3.35 3.65 2.6% 14.2% 6.0% 13.3% 2074 1.46 0.50 3.87 39.6 6.21 2.02 59.6% 80.7% 0.10 0.76 -1.6% 0.6% -3.3% -17.1% -6.3 27.5 1.1 Industry Average 2.7 1.0 6.1 32.0 7.0 2.5 32.0% 50.0% 6.2 8.0 3.6% 17.8% 9.0% 17.9% 16.2 7.6 2.9 9.7 8.0 1.3 Other Data Stock price Shares outstanding Tax rate Lease payments 20y3 $8.50 100,000 40% $40,000 2014 $6.00 100,000 40% $40,000 20y5E $7.20 100,000 40% $40,000 | 20y5E Ratio Analysis Current Quick Inventory turnover Days sales outstanding Fixed assets turnover Total assets turnover Debt ratio Liabilities-to-assets ratio Times interest earned EBITDA coverage Profit margin Basic earning power Return on assets Return on equity Price/earnings (P/E) Price/cash flow Market/Book 20y3 2.33 0.85 4.00 37.3 9.95 2.34 35.6% 54.8% 3.35 3.65 2.6% 14.2% 6.0% 13.3% 2074 1.46 0.50 3.87 39.6 6.21 2.02 59.6% 80.7% 0.10 0.76 -1.6% 0.6% -3.3% -17.1% -6.3 27.5 1.1 Industry Average 2.7 1.0 6.1 32.0 7.0 2.5 32.0% 50.0% 6.2 8.0 3.6% 17.8% 9.0% 17.9% 16.2 7.6 2.9 9.7 8.0 1.3 Other Data Stock price Shares outstanding Tax rate Lease payments 20y3 $8.50 100,000 40% $40,000 2014 $6.00 100,000 40% $40,000 20y5E $7.20 100,000 40% $40,000 |