Question
Provide a ratio analysis for the following ratios for Wingstop Restaurants? including a what they show about the financial status of the company? 2018 Numbers
Provide a ratio analysis for the following ratios for Wingstop Restaurants? including a what they show about the financial status of the company?
2018 Numbers
NOPAT | 30,659 |
NOA | 69,989 |
ROE | 21,719/[(-58,418-224,830)/2] = -15.34% |
RNOA | 30,659.12/[(70,860+69,989)/2] = 43.53% |
FLEV | 212,048.5/-141,624 = -1.4973 |
Spread | 43.53 - 4.22 = 39.31% |
NOPM | 30,659/153,181 = 20.01% |
NOAT | 153,181/[(70,860+69,989)/2] = 2.18 |
Operating Expense Margin | 38,527/153,181 = 25.15% |
Selling Expense Margin | (153,181-32,063)/153,181 = 79.07% |
Depreciation & Amortization Expense Ratio | 4,313/153,181 = 2.82% |
Accounts Receivable Turnover | 153,181/[(5,764+4,567)/2] = 29.65 |
PPE Turnover | 153,181/[(8,338+5,826)/2] = 21.63 |
Accounts Payable Turnover | 153,181/[(2,750+1,752)/2] = 68.05 |
Current Ratio | 29,906/26,482 = 1.13 |
Quick Ratio | 18,257/26,482 = 0.69 |
Liabilities to Equity Ratio | 364,579/-224,830 = -1.62 |
Total Debt to Equity Ratio | 311,774/-224,830 = -1.39 |
Times Interest Earned | (38,527-1,477+4,313)/10,123 = 4.09 |
2019 Numbers
NOPAT | 33,359 |
NOA | 83,802 |
ROE | -9.43% |
RNOA | 43.38% |
FLEV | -1.35 |
Spread | 39% |
NOPM | 16.71% |
NOAT | 2.6 |
Operating Expense Margin | 21.49% |
Selling Expense Margin | 79.41% |
Depreciation & Amortization Expense Ratio | 2.75% |
Accounts Receivable Turnover | 36.51 |
PPE Turnover | 11.05 |
Accounts Payable Turnover | 65.49 |
Current Ratio | .92 |
Quick Ratio | .55 |
Liabilities to Equity Ratio | -1.79 |
Total Debt to Equity Ratio | -1.48 |
Times Interest Earned Ratio | 2.5 |
2020 Numbers:
NOPAT | 46,659 |
NOA | 83,550 |
ROE | -8.46% |
RNOA | 55.76% |
FLEV | -1.3 |
Spread | 49.26% |
NOPM | 18.75% |
NOAT | 2.97 |
Operating Expense Margin | 23.07% |
Selling Expense Margin | 80.47% |
Depreciation & Amortization Expense Ratio | 3.02% |
Accounts Receivable Turnover | 49.25 |
PPE Turnover | 8.92 |
Accounts Payable Turnover | 71.03 |
Current Ratio | 1.44 |
Quick Ratio | .91 |
Liabilities to Equity Ratio | -1.62 |
Total Debt to Equity Ratio | -1.38 |
Times Interest Earned Ratio | 2.61 |
Provide analysis of the following Parsimonious Forecast and ROPI evaluation:
Parsimonious Forecast:
2020 NOPM = 46,659/248811 = 18.75%
2020 NOAT = 248,811/83,550 = 2.98
Reported 2020 | 2021 | 2022 | 2023 | 2024 | Terminal Period | |
Sales Growth | 15% | 15% | 15% | 15% | 3% | |
Sales Unrounded | $248,811 | $286,132.65 | $329,052.55 | $378,410.43 | $435,171.99 | $448,227.15 |
Sales Rounded | $248,811 | $286,133 | $329,053 | $378,410 | $435,172 | $448,227 |
NOPAT: Sales Rounded *18.75% | $46,659 | $53,650 | $61,697 | $70,952 | $81,595 | $84,043 |
NOA: Sales Rounded / 2.98 | $83,550 | $96,018 | $110,420 | $126,983 | $146,031 | $150,412 |
ROPI Model Valuation:
Reported 2020 | 2021 | 2022 | 2023 | 2024 | Terminal Period | |
Sales | $286,133 | $329,053 | $378,410 | $435,172 | $448,227 | |
NOPAT | $48,415 | $56,658 | $66,101 | $76,863 | $78,976 | |
NOA | $83,550 | $74,167 | $64,470 | $54,552 | $44,251 | $43,468 |
ROPI= NOPAT - NOABEG*Rw | 41,180 | 50,235 | 60,518 | 72,139 | 75,144 | |
Discount Factor = [1/(1+rw)t] | 0.9203 | 0.84696 | 0.77945 | 0.71733 | ||
Present Value of Horizon ROPI | 37,898 | 42,547 | 47,171 | 51,747 | ||
Present Value of Horizon ROPI | 179,363 | |||||
Present Value of Terminal ROPI | 952,355 | |||||
NOA | 83,550 | |||||
Total Firm Value | 1,215,268 | |||||
Less: NNO | 424,860 | |||||
Firm Equity Value | 790,408 | |||||
Shares Outstanding | 29687.123 | |||||
Stock Value per Share | $26.62 |
After the evaluation of the following model and ratios can we describe if the company is undervalued or overvalued? What is the main purpose of this evaluation? can we predict how the company is performing? what conclusion we can get?
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