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Old MathJax webview Q.) Calculate the gross profit ratio, the net profit ratio, and the return on equity for Genuine Parts Company for the year
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Q.) Calculate the gross profit ratio, the net profit ratio, and the return on equity for Genuine Parts Company for the year ended Dec. 31, 2019 (See 10-k link attached). Show your calculations. Note: Assume that the December 31, 2018 total equity is 3,472,000.
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I have attached the income statement as well. Please check it out.
Genuine Parts Company and Subsidiaries Consolidated Balance Sheets (In Thousands, Except Share Data and per Share Amounts) As of December 31, 2020 2019 990,166 $ 1,556,966 3,506,271 1,060,360 Assets Current assets: Cash and cash equivalents Trade accounts receivable, net Merchandise inventories, net Prepaid expenses and other current assets Current assets of discontinued operations Total current assets Goodwill Other intangible assets, net Deferred tax assets Operating lease assets Other assets Property, plant and equipment, net Noncurrent assets of discontinued operations Total assets 7,113,763 1,917,477 1,498,257 65,658 1,038,877 644,140 1,162,043 276,992 2,440,252 3,443,876 1,063,245 714.251 7,938,616 2,293,519 1,492,097 45,921 995,667 457,350 1,173,688 248,771 14,645,629 13,440,215 $ 4,128,084 $ 160,531 1,491,426 114,043 Liabilities and equity Current liabilities: Trade accounts payable Current portion of debt Other current liabilities Dividends payable Current liabilities of discontinued operations Total current liabilities Long-term debt Operating lease liabilities Pension and other post-retirement benefit liabilities Deferred tax liabilities Other long-term liabilities Noncurrent liabilities of discontinued operations Equity: Preferred stock, par value $1 per share authorized 10,000,000 shares; none issued Common stock, par value $1 per share - authorized 450,000,000 shares; issued and outstanding - 2020 - 144,354,335 shares and 2019 - 145,378,158 shares Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total parent equity Noncontrolling interests in subsidiaries Total equity Total liabilities and equity 5,894.084 2,516,614 789,294 265,687 212,910 543,623 3,948,000 624,043 1,493,109 110,851 218,117 6,394,120 2,802,056 756,519 249,832 233,044 445,652 68,906 145,378 98,777 144,354 117,165 (1,036,502) 3,979,779 3,204,796 13,207 3,218,003 13,440,215 $ (1,141,308) 4,571,860 3,674,707 20,793 3,695,500 14,645,629 See accompanying notes. Genuine Parts Company and Subsidiaries Consolidated Statements of Income (In Thousands, Except per Share Amounts) $ Year Ended December 31, 2020 2019 16,537,433 17,522,234 $ 10,882,592 11,662,551 5,654,841 5,859,683 2018 16,831,605 11,311,850 5,519,755 4,386,739 272,842 23,577 50,019 506,721 5,239,898 4,577,610 257,263 13,876 100,023 4,241,203 227,584 15,929 4,948,772 4,484,716 93,713 (58,138) 101,796 (61,395) Net sales Cost of goods sold Gross profit Operating expenses: Selling, administrative and other expenses Depreciation and amortization Provision for doubtful accounts Restructuring costs Goodwill impairment charge Total operating expenses Non-operating expenses (income): Interest expense Other Special termination costs Total non-operating expenses (income) Income before income taxes Income taxes Net income from continuing operations Net (loss) income from discontinued operations Net (loss) income Basic (loss) earnings per share: Continuing operations Discontinued operations Basic (loss) earnings per share Diluted (loss) earnings per share: Continuing operations Discontinued operations Diluted (loss) earnings per share Weighted average common shares outstanding Dilutive effect of stock options and non-vested restricted stock awards Weighted average common shares outstanding - assuming dilution 35,575 379,368 215,973 163,395 (192,497) (29,102) $ 95,583 (86,712) 42,757 51,628 859,283 212,808 646,475 (25,390) 621,085 40,401 994,638 245,104 749,534 60,940 810,474 $ S $ $ 1.13 $ (1.33) (0.20) $ 4.44 (0.18) 4.26 5.11 0.42 5.53 $ S $ 5.09 0.41 $ 5.50 1.13 $ (1.33) (0.20) $ 144,474 641 145,115 4.42 S (0.18) 4.24 $ 145,736 681 146,417 146,657 584 147,241 See accompanying notesStep by Step Solution
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