Question
Need assistance wrapping up project to verify accuracy. Please assist with the following attachment. The 2014 financial statements used to calculate these ratios are available
Need assistance wrapping up project to verify accuracy. Please assist with the following attachment.
The 2014 financial statements used to calculate these ratios are available in the Investor Relations section of the Celgene and Corporation and Gilead Sciences, Incorporated websites. Celgene Corporation Gilead Sciences, Inc. Earnings per Share of Common Stock (basic - common) As given in the income statement $2.02 $12.37 Current Ratio Current assets $9,401 = 4.77 $24,763 = 2.50 Current liabilities $1,969 $9,891 Gross (Profit) Margin Percentage Gross margin $8,741 = 95.4% $28,145 = 87.5% Net sales $9,161 $32,151 Rate of Return (Net Profit Margin) on Sales Net income $1,602 = 17.5% $18,106 = 56.3% Net sales $9,161 $32,151 Inventory Turnover Cost of goods sold $420 1.0 $4,006 2.4 Average inventory $418 times $1,671 times Days' inventory outstanding (DIO) 365 365 = 363 365 = 152 Inventory turnover 1.0 days 2.4 days Accounts Receivable Turnover Net sales (assume all sales are credit sales) $9,161 = 7.1 $32,151 = 6.1 Average net accounts receivable $1,294 $5,245 Days' Sales Outstanding (DSO) 365 365 = 51.6 365 = 59.5 Accounts receivable turnover 7.1 days 6.1 days Asset turnover Net sales $9,161 = 0.41 $32,151 = 0.74 Average total assets $22,197 $43,252 Rate of Return on Total Assets (ROA) Rate of return on sales times asset turnover = 7.2% = 41.9% Debt Ratio Total Liabilities $21,134 = 78.1% $33,305 = 64.2% Total Assets $27,053 $51,839 Times-Interest-Earned Ratio Income from operations $2,255 = 7.3 22,193 = 32.3 Interest expense $311 688 Dividend Yield Dividend per share of common stock $0.00 = 0.0% $0.47 = 0.6% (Please follow the Course Project instructions to calculate the current dividend yield.) Market price per share of common stock $118.22 $73.64 Rate of Return on Common Stockholders' Equity (ROE) Net income - Preferred dividends $1,602 = 25.7% $18,106 = 103.7% Average common stockholders' equity $6,222 $17,466 Free cash flow Net cash provided by operating activities minus cash payments earmarked for investments in plant assets = 2,19M = 19,582M Price-Earnings Ratio (Multiple) Market price per share of common stock as of 12/31/2015 $119.76 = 59 $101.19 = 8 (Please see the Course Project instructions for the dates to use for this ratio.) Earnings per share $2.02 $12.37
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