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only for the year of 2016 (a) name of the ratio that you are calculating (b) number or numbers that go into the numerator, and
only for the year of 2016
(a) name of the ratio that you are calculating
(b) number or numbers that go into the numerator, and
(c) number or numbers that go into the denominator and
(d) the calculation of the ratio.
4. For the first ratio on page C-11 (Return on TAs), there are two formulas. Calculate both.
5. if you are unable to find a number from the financials because it is missing, CLEARLY STATE what number is missing
6203 Exhibit 3 Sturm, Ruger & Company Balance Sheets consolidated Balance Sheets Dollars in thousands, except per share data) December 31, Assets 2016 2015 Current Assets the Cash and cash equivalents Trade receivables, net Gross inventories Less LIFO reserve La 223,622 strong $ 87,126 $ 69,225 69,442 71,721 99,417 81,278 Less excess and obsolescence reserved to (42,542) (42,061) Net inventories amb (2,340) (2,118) Deferred income taxes or como 54,535 37,099 Prepaid expenses and other current assets10 8,859 8,219 Total Current Assets 3,660 3,008 Property, Plant, and Equipment to be 189,272 331,639 Less allowances for depreciations dont 308,597 En Net property, plant and equipment Us (227,398) (204,777) 104,241 Other assets above 103,820 27,541 22,791 Total Assets $355,404 $315,883 Liabilities and Stockholders' Equity monitor the be Current Liabilities Trade accounts payable and accrued expenses ST Col$ 48,493 $ 42,991 Product liability 21,733 642 Employee compensation and benefitsioon on lo solo 25,467 28,298 Workers' compensationalista Gal 5,2005,100 - 4,962 Income taxes payable only rode geometal od 80,89381,993 Total Current Liabilities in Barbados Product liability throughout 86 babe 102 8,525 6,050 Deferred income taxes Contingent liabilities (Note 17) HOLM Stockholders' Equity Common stock, non-voting, par value $1: Authorized shares - 50,000; none issued Common stock, par value $1: Authorized shares - 40,000,000 2016 - 24,034,201 issued, 18,688,511 outstanding 24,034 2015 - 23,775,766 issued, 23,776 27,211 18,713,419 outstanding 29,591 293,400 Additional paid-in capital 239,098 VAT na TO Retained earnings Less: Treasury stock-at cost (78,745) 2016 - 5,345,690 shares 265,900 2015 - 5,062,347 shares $355,404 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Source: Sturm, Ruger & Company, Inc. 2016. Form 10-K. Southport, CT: Sturm, Ruger & Company, Inc: 50-51. (64,727) 227,738 $315,883 Part 4: Case Studies 6-11 Appendix Il Financial Analysis in Case Studies Table A-1 Profitability Ratios Ratio Formula What It Shows 1. Return on total assets Profits after taxes Total assets or The net return on total investments of the firm or The return on both creditors' and shareholders' investments Profits after taxes + Interest Total assets 2. Return on stockholders' equity (or return on net worth) Profits after taxes Total stockholders' equity How profitably the company is utilizing shareholders'funds 3. Return on common equity Profits after taxes - Preferred stock dividends The net return to common Total stockholders' equity - Par value of preferred stock stockholders Profits before taxes and before interest The firm's profitability from regular Sales operations 4. Operating profit margin for return on sales) 5. Net profit margin (or net return on sales) Profits after taxes Sales The firm's net profit as a percentage of total sales Table A-2 Liquidity Ratios Formula What It Shows Ratio 1. Current ratio Current assets Current liabilities The firm's ability to meet its current financial liabilities 2 Quick ratio (or acid-test ratio) Current assets - Inventory Current liabilities The firm's ability to pay off short-term obligations without relying on sales of inventory The extent to which the firm's working capital is tied up in inventory Inventory Current assets - Current liabilities 3. Inventory to networking capital Table A-3 Leverage Ratios What It Shows Formula Ratio Total borrowed funds as a percentage of total assets Total debt Total assets 1. Debt-to-assets Borrowed funds versus the funds provided by shareholders Total debt Total shareholders' equity 2 Debt-to-equity Leverage used by the firm 3. Long-term debt-to-equity Long-term debt Total shareholders'equity The firm's ability to meet all interest payments Profits before interest and taxes Total interest charges 4 Times-interest-earned (or coverage ratio) The firm's ability to meet all fixed- charge obligations including lease payments Profits before taxes and interest + Lease obligations Total interest charges + Lease obligations 5. Fixed charge coverage Part 4: Case Studies C-12 Table A-4 Activity Ratios What It Shows Ratio Formula 1. Inventory turnover Sales Inventory of finished goods The effectiveness of the firm in employing inventory The effectiveness of the firm in utilizing plant and equipment 2. Fixed assets turnover Sales Fixed assets 3. Total assets turnover Sales Total assets The effectiveness of the firm in utilizing total assets How many times the total receivables have been collected during the accounting period 4. Accounts receivable turnover Annual credit sales Accounts receivable 5. Average collecting period Accounts receivable Average daily sales The average length of time the firm waits to collect payment after sales Table A-5 Shareholders' Return Ratios Ratio Formula What It Shows 1. Dividend yield on common stock Annual dividend per share Current market price per share A measure of return to common stock- holders in the form of dividends 2. Price-earnings ratio Current market price per share After-tax earnings per share An indication of market perception of the firm; usually, the faster-growing or less risky firms tend to have higher PE ratios than the slower-growing or more risky firms 3. Dividend payout ratio Annual dividends per share After-tax earnings per share An indication of dividends paid out as a percentage of profits 4. Cash flow per share After-tax profits + Depreciation Number of common shares outstanding A measure of total cash per share avail- able for use by the firmStep by Step Solution
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