Question
Please calculate the ratios Current ratio quick ratio inventory turnover ratio days sales outstanding fixed asset turnover ratio total asset turnover ratio debt ratio times
Please calculate the ratios
Current ratio
quick ratio
inventory turnover ratio
days sales outstanding
fixed asset turnover ratio
total asset turnover ratio
debt ratio
times interest earned
profit margin
basic earning power
return on total assets
return on common equity
price/earnings
market/book
for 2016 and analysis of where the company is now, where the strengths are and the weaknesses are, what it must do to regain its financial health, and what actions should be taken. explanation on weaknesses and strengths, and your recommendations.
Balance Sheets
Assets
2014
2015
2016
Cash
$9,000
$7,282
$14,000
Short-Term Investments.
48,600
20,000
71,632
Accounts Receivable
351,200
632,160
878,000
Inventories
715,200
1,287,360
1,716,480
Total Current Assets
$1,124,000
$ 1,946,802
$2,680,112
Gross Fixed Assets
491,000
1,202,950
1,220,000
Less: Accumulated Depreciation
146,200
263,160
383,160
Net Fixed Assets
$344,800
$939,790
$836,840
Total Assets
$1,468,800
$ 2,886,592
$3,516,952
Liabilities And Equity
2014
2015
2016
Accounts Payable
$145,600
$324,000
$359,800
Notes Payable
200,000
720,000
300,000
Accruals
136,000
284,960
380,000
Total Current Liabilities
$481,600
$ 1,328,960
$1,039,800
Long-Term Debt
323,432
1,000,000
500,000
Common Stock (100,000 Shares)
460,000
460,000
1,680,936
Retained Earnings
203,768
97,632
296,216
Total Equity
$663,768
$557,632
$1,977,152
Total Liabilities And Equity
$1,468,800
$ 2,886,592
$3,516,952
Income Statements
2014
2015
2016
Sales
$3,432,000
$ 5,834,400
$7,035,600
Cost Of Goods Sold
2,864,000
4,980,000
5,800,000
Other Expenses
340,000
720,000
612,960
Depreciation
18,900
116,960
120,000
Total Operating Costs
$3,222,900
$ 5,816,960
$6,532,960
EBIT
$209,100
$17,440
$502,640
Interest Expense
62,500
176,000
80,000
EBT
$146,600
$(158,560)
$422,640
Taxes (40%)
58,640
(63,424)
169,056
Net Income
$87,960
$(95,136)
$253,584
Other Data
2014
2015
2016
Stock Price
$8.50
$6.00
$12.17
Shares Outstanding
100,000
100,000
250,000
EPS
$0.880
$(0.951)
$1.014
DPS
$0.220
$0.110
$0.220
Tax Rate
40%
40%
40%
Book Value Per Share
$6.638
$5.576
$7.909
Lease Payments
$40,000
$40,000
$40,000
Ratio Analysis
2014
2015
2016
Industry Average
Current
2.3
1.5
2.7
Quick
0.8
0.5
1.0
Inventory Turnover
4.8
4.5
6.1
Days Sales Outstanding
37.4
39.5
32.0
Fixed Assets Turnover
10.0
6.2
7.0
Total Assets Turnover
2.3
2.0
2.5
Debt to Invested Capital
44.1%
75.5%
40.0%
TIE
3.3
0.1
6.2
Profit Margin
2.6%
-1.6%
3.6%
Basic Earning Power
14.2%
0.6%
17.8%
ROA
6.0%
-3.3%
9.0%
ROE
13.3%
-17.1%
17.9%
Price/Earnings (P/E)
9.7
-6.3
16.2
Market/Book
1.3
1.1
2.9
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