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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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