FINANCIAL PERFORMANCE, Growth, FCFs (2) Ratios (3) Earlier Period (5) Trend Ratios (1) 2(3)+(4)/2 (6) Average Later Period Evaluation (1) Industry Norm 0.81 LQ The following data apply to the template provided The balance sheet and income statement shown below are for Pepperidge, Inc. Note that the firm has no amortization charges, it does lease some of its assets, none of its debt must be retired during the next 5 years as payments are set aside in equal annual principal payments, and the notes payable will be rolled over. (Note: The Times Interest Earned (TIE) ratio is the simplified benchmark for debt.) Current assets CURRENT = Current liabilities Current assets - Inventories QUICK = Current liabilities Cash ratio = Cash/ CL 44.0 days Average Collection Period = Acc. Rec(Credit Sales/365) INVENTORY T/OVER = Cos Ange Inventory AM AM 2018 $1.222.0 8.676.0 10.597.0 $20,495.0 15,558.0 $36,053.0 Fixed Assets Turnover = Sales/FA EV/EBITDA AM/PR 11.3 AM Total Assets Turnover = Sales/TA Gross Profit Margin = (Sales - Cost of Sales)/ PR 25.6% Sales Net Profit Margin = EAT/Sales ROA = EAT//TA 5.10% 9.25% 17.50% PEPPERIDGE, INC. Balance Sheet & Income Statement 2017-18* Balance Sheet (Millions of $) Assets 2017 Cash and securities $1,554.0 Accounts receivable 9.660.0 Inventories 13.440.0 Total current assets $24,654.0 Net plant and equipment 17,346.0 Total assets $42,000.0 Liabilities and Equity Accounts payable $7.980.0 Notes payable 5.880.0 Accruals 4.620.0 Total current liabilities $18,480.0 Long-term bonds 10,920.0 Total debt $29,400.0 Common stock 3,360.0 Retained earnings 9,240.0 Total common equity $12,600.0 Total liabilities and equity $42,000.0 Income Statement (Millions of$) 2014 Net sales $58,800.00 Operating costs except depr'n $51,500.0 Lease payments 3.478.0 Depreciation $1,029.0 Earnings befint and taxes (EBIT) $2,793.0 Less interest 1,050.0 Earnings before taxes (EBT) $1,743.0 Taxes $610.1 Net income $1,133.0 Other data: Shares outstanding (millions) 175.00 Common dividends $509.83 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 35% Year-end stock price $77.69 Cost of Capital = 10% ROE EAT/TCE Modified ROE: Integrating NPM and ROA above we have: NI/S S/TAX TA/CE, 17.50% $6,594.0 6.101.0 4,008.0 $16,703.00 10,781.0 $27.484.0 3,360.0 5,209.0 $8.569.0 $36,053.0 2015 $55.980.00 $47,660.0 3,478.0 $1,029.0 $3,813.0 1,050.0 $2,763.0 967.0 $1,796.0 Times Interest Earned EBIT / Interest Expense LM* LM 47.5% Total debt Total assets Debt Ratio Debt to Equity - Total Debt/TCE 88.5% MV P/E Ratio - Price per share / Earnings Per Share Market/Book Ratio: Book Value Per Share = TCE/# of shares Market/Book Ratio = Market Pr. Per Share / Book Value per Share 175.00 $509.83 6.25% 35% $80.22 Divi Yield = ExpecDixi./Mkt Share Price MV * From period 1 (2014) to period 2 (2015) is required to determine how the company is trending in financial performance.

Pepperidge inc financial performance growth

Efficiency(AM) HOW ABOUT THEIR EFFICIENCY?.

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Debt Management: (LM) ? Start with the TIE ratio ....

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Profitability (PR): Comment on the Du Pont Modifier with respect to margins & turnovers?

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Market Valuation (MV): The market responses?

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