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Please use the selected financial data for Campbell Soup (CPB) to perform the following activity. Make sure you answer the question and show your calculations.
Please use the selected financial data for Campbell Soup (CPB) to perform the following activity. Make sure you answer the question and show your calculations.
Describe the liquidity and financial health of the company referring specifically to the liquidity and debt rations provided. Do the trends indicate any reason for concern? Be specific.
Profitability and Financial Position for Campbell Soup Co (CPB) | ||||||||||||
2018-07 | 2017-07 | 2016-07 | 2015-07 | 2014-07 | Equity and Debt | |||||||
Revenue USD Mil | 8,685 | 7,890 | 7,961 | 8,082 | 8,268 | Equity | 1,364.00 | |||||
Operating Income USD Mil | 1,122 | 1,630 | 1,105 | 1,203 | 1,253 | Debt | 9,893.00 | |||||
Operating Margin | 12.9% | 20.7% | 13.9% | 14.9% | 15.2% | |||||||
Net Income USD Mil | 261 | 887 | 563 | 691 | 818 | Long Term Debt | ||||||
Shares Mil | 302 | 307 | 311 | 313 | 316 | Coupon % | Maturity | Price $ | Yield % | Face Value $ | (Price/100) x Face Value | |
Earnings Per Share USD | 0.86 | 2.89 | 1.81 | 2.21 | 2.59 | Variable | 3/16/2020 | 99.536 | 2.834 | 500,000,000 | 497680000 | |
Dividends Per Share USD | 1.4 | 1.4 | 1.24 | 1.24 | 1.24 | Variable | 3/15/2021 | 98.835 | 2.964 | 400,000,000 | 395340000 | |
Operating Cash Flow USD Mil | 1,305 | 1,291 | 1,463 | 1,182 | 899 | 3.3 | 3/15/2021 | 98.963 | 3.773 | 650,000,000 | 643259500 | |
Cap Spending USD Mil | -407 | -338 | -341 | -380 | -347 | 4.25 | 4/15/2021 | 100.885 | 3.857 | 500,000,000 | 504425000 | |
Free Cash Flow USD Mil | 898 | 953 | 1,122 | 802 | 552 | 8.875 | 5/1/2021 | 111.812 | 3.775 | 200,000,000 | 223624000 | |
2.5 | 8/2/2022 | 95.353 | 3.865 | 450,000,000 | 429088500 | |||||||
Key Ratios -> Profitability | 2018-07 | 2017-07 | 2016-07 | 2015-07 | 2014-07 | 3.65 | 3/15/2023 | 96.481 | 4.559 | 1,200,000,000 | 1157772000 | |
COGS % of Sales | 67.58 | 61.23 | 65.08 | 65.29 | 64.95 | 3.95 | 3/15/2025 | 94.83 | 4.913 | 850,000,000 | 806055000 | |
Gross Margin % of Sales | 32.42 | 38.77 | 34.92 | 34.71 | 35.05 | 3.3 | 3/19/2025 | 90.885 | 4.998 | 300,000,000 | 272655000 | |
Operating Margin | 12.9% | 20.7% | 13.9% | 14.9% | 15.2% | 4.15 | 3/15/2028 | 92.389 | 5.191 | 1,000,000,000 | 923890000 | |
Net Margin | 3.01% | 11.24% | 7.07% | 8.55% | 9.89% | 3.8 | 8/2/2042 | 72.248 | 6.011 | 400,000,000 | 288992000 | |
Return on Assets % | 2.35 | 11.4 | 7.07 | 8.53 | 9.95 | 4.8 | 3/15/2048 | 83.157 | 6.031 | 700,000,000 | 582099000 | |
Return on Equity % | 17.39 | 56.1 | 38.76 | 46.14 | 57.77 | Total | 7,150,000,000 | 6,724,880,000 | ||||
Return on Invested Capital % | 5.48 | 18.77 | 12.09 | 13.76 | 15.9 | |||||||
Last Stock Price | Mkt Cap | Beta | Tax Rate | |||||||||
-> Liquidity/Financial Health | 2018-07 | 2017-07 | 2016-07 | 2015-07 | 2014-07 | 39.52 | 12.19 bil | -0.1846 | 30% | |||
Current Ratio | 0.64 | 0.79 | 0.75 | 0.75 | 0.7 | Growth per year* | ||||||
Quick Ratio | 0.28 | 0.39 | 0.36 | 0.32 | 0.3 | -1.35 | ||||||
Financial Leverage | 10.65 | 4.72 | 5.14 | 5.86 | 5.02 | *Estimated | ||||||
Debt/Equity | 5.86 | 1.53 | 1.52 | 1.85 | 1.39 | |||||||
Interest Coverage | 2.35 | 12.54 | 8.38 | 10.17 | 9.8 | |||||||
Working Capital USD Mil | -1,298 | -495 | -647 | -714 | -889 | |||||||
-> Efficiency Ratios | ||||||||||||
Receivables Turnover | 12.5 | 12.82 | 12.51 | 12.27 | 12.67 | |||||||
Inventory Turnover | 5.59 | 5.25 | 5.36 | 5.25 | 5.53 | |||||||
Fixed Assets Turnover | 3.05 | 3.25 | 3.35 | 3.46 | 3.61 | |||||||
Asset Turnover | 0.78 | 1.01 | 1 | 1 | 1.01 | |||||||
Total Return % | To Date | 1-Year | 3-Year | 5-Year | 10-Year | 15-Year | ||||||
CPB | -21.68 | -18.77 | -7.07 | 1.18 | 2.35 | 4.65 | ||||||
Packaged Foods | -13.25 | -8.68 | 0.67 | 4.3 | 8.09 | 8.8 | ||||||
S&P 500 TR USD | 10.56 | 17.91 | 17.31 | 13.95 | 11.97 | 9.65 |
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