Question
Q4 You have performed the common sizing and horizontal analysis to the financial statement of X co. You have selectively considered the current (Year 0)
Q4 You have performed the common sizing and horizontal analysis to the financial statement of X co. You have selectively considered the current (Year 0) parameters as mentioned in the table below. Based on the value's, you have calculated the Year 1 ratios and growth rates (05 Marks)
Particulars | Year 0 | Year 1 |
Growth rate in Sales revunes (y-o-y) | N/A | 4% |
Gross Profit Margin | 33% | 34% |
SG& A expenses/ Saled revenue | 25% | 25% |
Depreciation Net PPEt-1 | 10% | 10% |
Net working Capital Turnover | 5 | 5.5 |
Net PPE turnover | 2 | 2.5 |
Corporate Tax rate | 25% | 25% |
Net working Capital: Sales revenue/Net Working Capital , Net PPE Turnover: Sales revenue/Net PPE, Depreciation/Net PPE : Depreciation/ Beginning Period Net PPE.
Sales revenue for X Co. at Year 0 = $180 million. The growth rate of 4% at Year 1 denotes growth from year0 to year1 for sale revenue. There is no debt and interest payments. Beginning period Net PPE for Year 0 is $ 80 Million. Project Sales revenue, Net profit, Gross Profit, EBITDA, Net PPE and Net working capital values for Year 1.
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