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For the ratios that are already calculated below, answer the following questions please... INSTRUCTIONS: 1. Evaluate the company's performance trend relative to liquidity, profitability and
For the ratios that are already calculated below, answer the following questions please...
| INSTRUCTIONS: | |||||||||
| 1. Evaluate the company's performance trend relative to liquidity, profitability and solvency. | |||||||||
| 2. Evaluate the company's performance relative to liquidity, profitability and solvency for their industry for the three years. | |||||||||
| 3. Relate to the company management in which areas they are performing well and in which areas they need improvement. | |||||||||
| 12/31/2012 | 12/31/2011 | 12/31/2010 | INDUSTRY | ||||||
| Liquidity | |||||||||
| Current Ratio (One decimal place) | 2.3 | 2.1 | 2.1 | 2.2 | |||||
| Current Assets / Current Liabilities | |||||||||
| Acid Test Ratio (One decimal place) | 1.5 | 1.3 | 1.3 | 1.6 | |||||
| (Cash+Accounts Receivabl+Short Term Investments) / Current Liabilities | |||||||||
| Receivables Turnover (One decimal place) | 9.9 | 10.0 | 9.3 | 10 | |||||
| Net Sales / Average Accounts Receivable | |||||||||
| Inventory Turnover (One decimal place) | 10.6 | 11.4 | 10.4 | 9.5 | |||||
| Cost of Goods Sold / Average Inventory | |||||||||
| Profitability | |||||||||
| Profit Margin (% with two decimal places) | 1.69% | 1.66% | 3.75% | 3.50% | |||||
| Net Income / Net Sales | |||||||||
| Asset Turnover (two decimal places) | 1.00 | 0.99 | 1.00 | 1.90 | |||||
| Net Sales / Total Average Sales | |||||||||
| Return on Assets (% one decimal place) | 3.9% | 3.8% | 8.3% | 10.5% | |||||
| Net Income / Total Average Assets | |||||||||
| Return on Common Shareholders' Equity | |||||||||
| (One decimal place) | 5.2% | 5.1% | 8.3% | 18.3% | |||||
| (Net Income - Preferred Dividends) / Average Common Stockholders' Equity | |||||||||
| Earnings per Share (EPS) (Two decimal places) | 2.31 | 2.27 | 5.22 | 3.05 | |||||
| Net Income / Average Outstanding Common Shares | |||||||||
| Price-Earnings (P/E ) Ratio (Two decimal places) | 15.17 | 14.98 | 5.93 | 14.8 | |||||
| Market Value per Share / Earnings per Share | |||||||||
| Payout Ratio (% One decimal place) | 12.8% | 10.9% | 4.5% | 15.0% | |||||
| Divedends per Share / Earnings per Share | |||||||||
| Solvency Ratios | |||||||||
| Debt to Total Assets Ratio (% One decimal place) | 24.5% | 26.3% | 27.6% | 42.2% | |||||
| (Short Term Debt + Long Term Debt) / Total Assets | |||||||||
| Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||||||
| Common Dividends | 19,200 | 16,130 | 15,000 | ||||||
| Weighted Average Common Shares | 65,000 | 65,000 | 63,750 | ||||||
| Market Price per Share | 35 | 34 | 31 | ||||||
| INSTRUCTIONS: | |||||||||
| Calculate all of the ratios listed above. | |||||||||
| Evaluate the company's performance trend relative to liquidity, profitability and solvency. | |||||||||
| Evaluate the company's performance relative to liquidity, profitability and solvency for their industry for the three years. | |||||||||
| Relate to the company management in which areas they are performing well and in which areas they need improvement. | |||||||||
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Im Just A Girl Who Loves Auditing And Coffee
Authors: Michael Happiness
1st Edition
B08HT8643K, 979-8684238604
