Question
Given the below information, what is the firm's market to book ratio? Income Statement: Sales 1,000,000 Cost of goods sold 700,000 Depreciation 100,000 SG&A expense
Given the below information, what is the firm's market to book ratio?
Income Statement:
Sales 1,000,000
Cost of goods sold 700,000
Depreciation 100,000
SG&A expense 100,000
EBIT 100,000
Interest expense 50,000
Tax expense 20,000
Net income 30,000
Balance Sheet:
Cash 100,000 Accounts Payable 100,000
Accounts Receivable 50,000 Other current liabilities 200,000
Inventory 70,000 Total current liabilities 300,000
Current Assets 220,000 Long term debt 100,000
Fixed Assets 200,000 Total Liabilities 400,000
Intangible Assets 0 Total equity 20,000
Total Assets 420,000
Notable financial ratios:
Cost of goods sold/revenue: 70%
SG&A expenses/revenue: 10%
Current ratio: .73333333
Inventory turns: 10
Dividend yield: 5%
Price earnings ratio: 20
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