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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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