FINANCIAL RATIO ANALYSIS: On the RATIOS worksheet in the CASE STUDY DATA SHEETS (Fall 2016).xlsx calculate Amarons listed financial ratios for 2015 and 2016.

Compare each of Amarons ratios to the Benchmark firm to determine if each ratio is BETTER, SAME AS, or WORSE than the Benchmark firms ratio for both 2015 and 2016.

	Amaron Products
	Financial RATIO CALCULATIONS AND ANALYSIS
		Amaron Products	BENCHMARK FIRM	YOUR ANALYSIS OF 2015 RATIO (BETTER, SAME, or, WORSE than the benchmark firm)	Amaron Products	BENCHMARK FIRM	YOUR ANALYSIS OF 2016 RATIO (BETTER, SAME, or, WORSE than the benchmark firm)
	ASSIGNED RATIOS	2015	2015		2016	2016
	PROFITABILITY RATIOS
	Profit Margin	0.0%	7.9%		0.0%	6.9%
	Return On Assets (ROA)	0.0%	8.5%		0.0%	7.7%
	Return On Common Equity (ROE)	0.0%	14.6%		0.0%	13.2%
	ASSET UTILIZATION RATIOS
	Receivables Turnover	0.0	6.2		0.0	6.4
	Days Sales in Receivables	0.0	58.9		0.0	57.0
	Inventory Turnover	0.0	2.5		0.0	2.6
	Days Sales in Inventory	0.0	146.0		0.0	140.4
	Total Asset Turnover	0.0	1.1		0.0	1.1
	LIQUIDITY RATIOS
	Current Ratio	0.0	2.0		0.0	1.9
	Quick ratio	0.0	0.9		0.0	0.9
	Cash Ratio	0.0	0.2		0.0	0.2
	FINANCIAL LEVERAGE RATIOS
	Total Debt Ratio	0.0%	42.0%		0.0%	41.9%
	Debt-Equity Ratio	0.0	0.8		0.0	1.0
	Equity-Multiplier	0.0	1.8		0.0	2.0
	Times Interest Earned	0.0	6.5		0.0	7.0
	Cash Coverage Ratio	0.0	7.5		0.0	8.2
	MARKET VALUE RATIOS
	Earnings Per Share (EPS)	$0.00	$1.63		$0.00	$1.99
	Price/earnings (P/E)	0.0	20.2		0.0	18.6
	Market/book (M/B)	0.0	3.0		0.0	3.0
	Enterprise Value (EV)	$0			$0
	EV Multiple	0.0	10.8		0.0	9.9

Financial Data

	Amaron Products
	INCOME STATEMENT
TABLE #1		2015	2016
	Total sales	$50,037,400	$55,351,400
	Cost of goods sold	38,028,500	42,200,400
	Administrative expense	5,103,800	5,573,300
	Earnings before interest, taxes, depreciation & amortization (EBITDA)	6,905,100	7,577,700
	Depreciation	1,124,700	1,574,100
	Earnings before interest & taxes.(EBIT)	5,780,400	6,003,600
	Interest expense	981,500	1,223,200
	Earnings Before Taxes (EBT)	4,798,900	4,780,400
	Taxes	1,679,600	1,529,800
	Net income	3,119,300	3,250,600
	Dividends	623,900	650,100
	Additions to Retained Earnings	2,495,400	2,600,500
	Amaron Products
	BALANCE SHEET
TABLE #2		2015	2016
	ASSETS
	Cash	$650,500	$716,900
	Accounts receivable	8,339,600	10,015,900
	Inventory	12,676,200	18,456,500
	Total Current Assets	21,666,300	29,189,300
	Net Fixed Assets	23,827,400	25,805,100
	TOTAL ASSETS	$45,493,700	$54,994,400
	LIABILITIES & STOCKHOLDER'S EQUITY
	Accounts payable	$3,138,000	$4,233,200
	Accruals	1,701,100	1,833,800
	Notes payable	5,687,100	8,687,100
	Total current liabilities	10,526,200	14,754,100
	Long-term debt	9,065,300	12,065,300
	TOTAL LIABILITIES	19,591,500	26,819,400
	Common stock	2,500,000	2,500,000
	Retained earnings*	23,402,200	25,675,000
	TOTAL STOCKHOLDERS' EQUITY	25,902,200	28,175,000
	TOTAL LIABILITIES & STOCKHOLDER'S EQUITY	$45,493,700	$54,994,400
	Amaron Products
	ADDITIONAL INFORMATION
TABLE #3	Information	2015	2016
	Growth rate in sales	12.80%	10.62%
	Depreciation as a % of net fixed assets	5.39%	6.61%
	Short-term interest expense	5.53%	5.75%
	Long-term interest expense	6.75%	7.02%
	Income tax rate	35.00%	32.00%
	Dividend payout ratio	20.00%	20.00%
	Fixed assets as a percent of total capacity.	92.00%	85.00%
	End of year stock price	$27.67	$26.54
	Number of common shares outstanding	2,500,000	2,500,000