Q1

Calculate the following ratios for BottomsUp
	2018	2017	2016
Current ratio
Quick ratio
Receivable days
Inventory turnover
Inventory days
Current asset turnover
Fixed asset turnover
Total asset turnover
Long-term debt to total debt
Book debt-to-equity ratio
Gross profit ratio
Net profit ratio
Return on equity
Return on total assets

Q2: Compare BottomsUp profitability, leverage, and asset management to those of the average firm in the industry

Q3: BottomsUp has applied for a $7 million loan at a local bank. If you were a bank risk analyst, would you give BottomsUp this loan? Briefly explain your answer

Industry Average Ratios Current ratio Quick ratio Receivable days Inventory turnover Inventory days Current asset turnover Fixed asset turnover Total asset turnover Long-term debt to total debt Debt-to-equity ratio Gross profit ratio Net profit ratio Return on equity Return on total assets 2.30 1.20 52 days 4.85 75 days 3.00 2.00 1.10 24% 35% 40% 18% 22% 10% Income Statement (in millions) 2018 20.50 13.33 7.18 4.1 3.08 Revenues Cost of goods sold Gross profit SG&A EBITDA Depreciation EBIT Interest expense Pretax income Tax expense (25%) Net income 2017 36.10 23.47 12.64 7.22 5.42 1.81 3.61 0.125 3.49 0.87 2.61 2016 52.80 34.32 18.48 10.56 7.92 2.64 5.28 0.125 5.16 1.29 3.87 1.03 2.05 0.125 1.93 0.48 1.44 Balance Sheet (in millions) 2018 2017 2016 Assets Cash Accounts receivable Inventories Current assets 5.20 10.70 3.30 19.20 7.80 6.30 2.10 16.20 9.40 4.10 1.50 15.00 Fixed assets (net of depreciation) Total Assets 3.20 22.40 4.23 20.43 6.03 21.03 Equity and Liabilities Account payables Short-term borrowing Current liabilities 1.45 0.61 2.06 0.97 0.54 1.51 0.65 0.31 0.96 Long-term borrowing Total liabilities 7.60 9.66 8.70 10.21 9.90 10.86 Equity Total Equity and Liabilities 12.74 22.40 10.22 20.43 10.17 21.03 Industry Average Ratios Current ratio Quick ratio Receivable days Inventory turnover Inventory days Current asset turnover Fixed asset turnover Total asset turnover Long-term debt to total debt Debt-to-equity ratio Gross profit ratio Net profit ratio Return on equity Return on total assets 2.30 1.20 52 days 4.85 75 days 3.00 2.00 1.10 24% 35% 40% 18% 22% 10% Income Statement (in millions) 2018 20.50 13.33 7.18 4.1 3.08 Revenues Cost of goods sold Gross profit SG&A EBITDA Depreciation EBIT Interest expense Pretax income Tax expense (25%) Net income 2017 36.10 23.47 12.64 7.22 5.42 1.81 3.61 0.125 3.49 0.87 2.61 2016 52.80 34.32 18.48 10.56 7.92 2.64 5.28 0.125 5.16 1.29 3.87 1.03 2.05 0.125 1.93 0.48 1.44 Balance Sheet (in millions) 2018 2017 2016 Assets Cash Accounts receivable Inventories Current assets 5.20 10.70 3.30 19.20 7.80 6.30 2.10 16.20 9.40 4.10 1.50 15.00 Fixed assets (net of depreciation) Total Assets 3.20 22.40 4.23 20.43 6.03 21.03 Equity and Liabilities Account payables Short-term borrowing Current liabilities 1.45 0.61 2.06 0.97 0.54 1.51 0.65 0.31 0.96 Long-term borrowing Total liabilities 7.60 9.66 8.70 10.21 9.90 10.86 Equity Total Equity and Liabilities 12.74 22.40 10.22 20.43 10.17 21.03