Need help calculating the ratios and a write-up, please!

Search Google or any other search engine for business information on Callaway Golf.

As the Chief Financial Officer, what is going well? What are your concerns for the company. What are your recommendations to improve the financial health of the company?

Your analysis must begin with a horizontal analysis and a common size analysis. The calculate the ratios from the liquidity, activity, leverage, profitability and stock market groups of ratios, as outlined in our chapter.

Ratio Analysis 2015 2016 Liquidity Ratios Current Ratio Quick Ratio Cash Flow Liquidity Ratio Activity Ratios Acct Receivable Turnover Days Sales Outstanding Inventory Turnover Acct Payable Turnover Days Payable Outstanding Leverage Ratios Debt Ratio Debt to Equity Times Interest Earned Profitablity Ratios Gross Profit Margin Operating Profit Margin Net Profit Margin Cash Flow Margin Return on Total Assets Return on Equity 29 Market Ratios Earning per Share Price to Earnings Ratio Dividend Yield 2015 2016 e Assets Cash & Equivalents 1 Accounts Receivable 2 Inventories 3 Income taxes receivable Prepaid Expense & Other 5 Total Current Assets Property & Equipment 7 Goodwill 3 Intangible Assets Deferred Income Taxes 0 Investment in golf-related ventures 1 Other Long Term Assets Total Assets 49,801 115,607 208,883 487 16,709 391,487 55,808 26,500 88,782 6,962 53,315 8,370 631,224 7.9% 18.3% 33.1% 0.1% 2.6% 62.0% 8.8% 4.2% 14.1% 1.1% 8.4% 1.3% 100.0% 125,975 127,863 189,400 637 16,550 460,425 54,475 25,593 88,731 114,707 48,997 8,354 801,282 15.7% 16.0% 23.6% 0.1% 2.1% 57.5% 6.8% 3.2% 11.1% 14.3% 6.1% 1.0% 100.0% 2 4 Liabilities 5 Accounts payable & Accrued expenses 6 Accrued employee compensation and benefits 7 Asset-based credit facility 8 Accrued warranty expense 9 Income taxes payable. 0 Total current liabilities 1 Income tax liability 2 Deferred taxes, net 3 Other long term liabilities 4 Total liabilities 122,620 33,518 14,969 5,706 1,823 178,636 3,476 35,093 1,074 218,279 19.4% 5.3% 2.4% 0.9% 0.3% 28.3% 0.6% 5.6% 0.2% 34.6% 132,521 32,568 11,966 5,395 4,404 186,854 3,608 1,596 624 192682 16.5% 4.1% 1.5% 0.7% 0.5% 23.3% 0.5% 0.2% 0.1% 24.0% 6 Stockholders' equity 7 Preferred stock 8 Common Stock 9 Additional paid-in capital Retained earnings 1 Accumulated other comprehensive income (loss) 2 Less: Common stock held in treasury 3 Total stockholders' equity 4 Total liabilities and stockholders' equity 938 322,793 101,047 (11,813) (20) 412,945 631,224 0.1% 51.1% 16.0% -1.9% -0.0% 65.4% 100.0% 942 330,206 287,129 (18,466) (905) 608,600 801,282 0.1% 41.2% 35.8% -2.3% -0.1% 76.0% 100.0% Horizontal Analysis - Balance Sheet 2015 2016 % Change Assets Cash & Equivalents Accounts Receivable Inventories Income taxes receivable Prepaid Expense & Other Total Current Assets Property & Equipment Goodwill Intangible Assets Deferred Income Taxes Investment in golf-related ventures Other Long Term Assets Total Assets 49,801 115,607 208,883 487 16,709 391,487 55,808 26,500 88,782 6,962 53,315 8,370 631,224 125,975 127,863 189,400 637 16,550 460,425 54,475 25,593 88,731 114,707 48,997 8,354 801,282 153.0% 10.6% -9.3% 30.8% -1.0% 17.6% -2.4% -3.4% -0.1% 1,547.6% -8.1% -0.2% 26.9% Liabilities Accounts payable & Accrued expenses Accrued employee compensation and benefits Asset-based credit facility Accrued warranty expense Income taxes payable Total current liabilities Income tax liability Deferred taxes, net Other long term liabilities Total liabilities 122,620 33,518 14,969 5,706 1,823 178,636 3,476 35,093 1,074 218,279 132,521 32,568 11,966 5,395 4,404 186,854 3,608 1,596 624 192682 8.1% -2.8% -20.1% -5.5% 141.6% 4.6% 3.8% -95.5% -41.9% -11.7% Stockholders' equity Preferred stock Common Stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Less: Common stock held in treasury Total stockholders' equity Total liabilities and stockholders' equity 938 322,793 101,047 (11,813) (20) 412,945 631,224 942 330,206 287,129 (18,466) (905) 608,600 801,282 0.4% 2.3% 184.2% 56.3% 4,425.0% 47.4% 26.9% Common Size Vertical Analysis - Income Statement Net Revenues Cost of Goods Sold 2014 886,945 529,019 100.0% 59.6% 2015 843,794 486,161 100.0% 57.6% 2016 871,192 486,181 100.0% 55.8% =Gross Profit 357,926 40.4% 357,633 42.4% 385,011 44.2% Sell, Gen & Admin Exp 295,893 33.4% 297,477 35.3% 307525 35.3% =Operating Income 62,033 7.0% 60,156 7.1% 77,486 8.9% -0.3% Interest Expense Other Expense (9,499) (48) -1.1% -0.0% (8,733) 1,465 -1.0% 0.2% (2,368) (1,690) -0.2% =Income before taxes 21,639 2.4% 20,063 2.4% 58,393 6.7% Income Taxes 5,631 0.6% 5,495 0.7% (132,561) -15.2% =Net Income 16,008 1.8% 14,568 1.7% 190,954 21.9% Horizontal Analysis - Income Statement 2014 886,945 529,019 Net Revenues Cost of Goods Sold 2015 843,794 486,161 * 14.5% % Change -4.9% -8.1% 2016 871,192 486,181 871,192 % Change 3.2% 0.0% 13,2% =Gross Profit 357,926 357,633 -0.1% 385,011 7.7% Sell, Gen & Admin Exp 295,893 297,477 0.5% 307525 3.4 =Operating Income 62,033 60,156 -3.0% 77,486 22.4% -72.9 Interest Expense Other Expense (9,499) (48) (8,733) 1,465 (8.1%) -3152.1 (2,368) (1,690) -215.4 =Income before taxes 21,639 20,063 -7.3% 58,393 191.0% Income Taxes 5,631 5,495 -2.4% (132,561) -2512.4 =Net Income $16,008.00 $14,568.00 -9.0% 190,954