Lana Jarir Marketing Co. Income Statement and Balance Sheet Al figures are in Thousands 2017 2018 2018 2017 Balance sheet (Assets) Quick assets (cash Accounts receivable) 700239 550.338 Income statement Revenues Cost of sales Selling costs Depreciation Operating income 7.361.723 (6.247,901) (5.304,694) (199,314) (193565 13.300 923,521 334.773 inventories Current assets 1.057.573 1.757912 149283 13.9771 1901) 41267 375.157 Property, plant & equipment Investments Totalassets 115.227 3:41.705 3214314 Interest expense Gain on sale tanning before taxes 107,658 303.15 2.377,130 974,242 Prler 107415 867,659 Nincome 959,992 Current Year 11.02.652 Balance sheet (Liables) Current bites 2.364.000 Non-Current lities Equity Labetes and equity 151.491 1699417 3.214314 148.435 1626,043 2.377,130 The Exhibit above presents the actual income statement and balance sheet for Jarir Marketing Co. a seven- billion-riyal company listed in Tadawul under the Retail category. a) Compute NOPLAT (2.5 points) b) Compute the average invested capital, (2.5 points) c) Compute the ROIC. (2.5 points) d) If the weighted average cost of capital is 10 percent, is the company creating value? (2.5 points) You can assume an operating tax rate of 25 percent and a marginal tax rate of 35 percent. E Zalat Net income 959992 557659 Balance sheet (lables) Current abse year 1364.00 year 1102552 Non-Ourrentes Equity Les and equity 151491 1699 417 3214914 143 435 1625.045 2577,130 The Exhibit above presents the actual income statement and balance sheet for Jarir Marketing Co. a seven- billion-riyal company listed in Tadawul under the Retail category. a) Compute NOPLAT, (2.5 points) b) Compute the average invested capital, (2.5 points) c) Compute the ROIC. (2.5 points) d) If the weighted average cost of capital is 10 percent, is the company creating value? (2.5 points) You can assume an operating tax rate of 25 percent and a marginal tax rate of 35 percent. Jarrir Case study on ROIC Template.xlsx Lana Jarir Marketing Co. Income Statement and Balance Sheet Al figures are in Thousands 2017 2018 2018 2017 Balance sheet (Assets) Quick assets (cash Accounts receivable) 700239 550.338 Income statement Revenues Cost of sales Selling costs Depreciation Operating income 7.361.723 (6.247,901) (5.304,694) (199,314) (193565 13.300 923,521 334.773 inventories Current assets 1.057.573 1.757912 149283 13.9771 1901) 41267 375.157 Property, plant & equipment Investments Totalassets 115.227 3:41.705 3214314 Interest expense Gain on sale tanning before taxes 107,658 303.15 2.377,130 974,242 Prler 107415 867,659 Nincome 959,992 Current Year 11.02.652 Balance sheet (Liables) Current bites 2.364.000 Non-Current lities Equity Labetes and equity 151.491 1699417 3.214314 148.435 1626,043 2.377,130 The Exhibit above presents the actual income statement and balance sheet for Jarir Marketing Co. a seven- billion-riyal company listed in Tadawul under the Retail category. a) Compute NOPLAT (2.5 points) b) Compute the average invested capital, (2.5 points) c) Compute the ROIC. (2.5 points) d) If the weighted average cost of capital is 10 percent, is the company creating value? (2.5 points) You can assume an operating tax rate of 25 percent and a marginal tax rate of 35 percent. E Zalat Net income 959992 557659 Balance sheet (lables) Current abse year 1364.00 year 1102552 Non-Ourrentes Equity Les and equity 151491 1699 417 3214914 143 435 1625.045 2577,130 The Exhibit above presents the actual income statement and balance sheet for Jarir Marketing Co. a seven- billion-riyal company listed in Tadawul under the Retail category. a) Compute NOPLAT, (2.5 points) b) Compute the average invested capital, (2.5 points) c) Compute the ROIC. (2.5 points) d) If the weighted average cost of capital is 10 percent, is the company creating value? (2.5 points) You can assume an operating tax rate of 25 percent and a marginal tax rate of 35 percent. Jarrir Case study on ROIC Template.xlsx
