Question:

Asasa new junior analyst in ABC Company, a report should be made keeping in mind all assumptions with valid logical reasoning. All relevant ratios of five years are given with broad category and write based on various performance areas given in these financial highlights. Discussion can be done on all ratios based on broader category in givenquestion.

(You have to analyse ratios of each year with valid reasoning and make a report on that)

PROFITABILITY RATIO

Net Profit Margin= 27.204311, Asset Turnover= 0.39599,Return onAssets= 11.976797,Financial Leverage= 1.2, Return on Equity= 17.2234,Gross Profit Margin= 35.39,Operation Return on Assets=12.2,Return on Capital Employed= 14.858744(YEAR 2013)

Net Profit Margin= 21.7072631, Asset Turnover= 0.396281, Return onAssets= 8.602170, Financial Leverage= 1.2713841, Return on Equity= 10.9367, Gross Profit Margin= 34.4259, Operation Return on Assets=12.41374, Return on Capital Employed= 14.163817(YEAR 2014)

Net Profit Margin= 27.833978, Asset Turnover= 0.368713, Return onAssets= 10.2627588, Financial Leverage= 1.2095523, Return on Equity= 12.4133, Gross Profit Margin= 34.2846, Operation Return on Assets=12.93982, Return on Capital Employed= 14.279002(YEAR 2015)

Net Profit Margin=26.235569, Asset Turnover= 0.38841, Return onAssets= 10.1901551, Financial Leverage= 1.2423426, Return on Equity= 12.6597, Gross Profit Margin= 38.9151, Operation Return on Assets=14.54331, Return on Capital Employed= 16.328471(YEAR 2016)

Net Profit Margin= 24.182998, Asset Turnover= 0.329092, Return onAssets= 7.95843722, Financial Leverage= 1.36676, Return on Equity= 10.8773, Gross Profit Margin= 37.3425, Operation Return on Assets=11.69163, Return on Capital Employed= 13.451284(YEAR 2017)

LIQUIDITY RATIOS

Current Ratio= 2.5379686, Quick Ratio= 1.793695, Cash to Current Liabilities= 3.45(YEAR2013)

Current Ratio= 4.8291736, Quick Ratio= 3.844546,Cash to Current Liabilities= 3.78282211(YEAR 2014)

Current Ratio=4.3604403, Quick Ratio= 3.380666,Cash toCurrent Liabilities= 3.32363512(YEAR 2015)

Current Ratio=3.0708846, Quick Ratio= 2.434411,Cash toCurrent Liabilities= 2.384057896(YEAR 2016)

Current Ratio=1.853497, Quick Ratio= 1.168916,Cash toCurrent Liabilities= 1.13657896(YEAR 2017)

ACTIVITY RATIOS

Inventory turnover ratio= 11.635384, No. of days in inventory=20.45, Receivables turnover ratio= 45.75, No. of days in receivables= 8.36, Payable turnover ratio= 34.54, No of days in payable=10.9, Working capital turnover= 1.09, Cash conversion cycle= 20.45(YEAR 2013)

Inventory turnover ratio= 14.201233, No. of days in inventory=25.70199, Receivables turnover ratio= 54.734196, No.of days in receivables= 6.6685916, Payable turnover ratio= 36.7044, No of days in payable= 9.94432, Working capital turnover= 1.06593, Cash conversion cycle= 22.426263(YEAR 2014)

Inventory turnover ratio= 14.750045, No. of days in inventory= 24.74569, Receivables turnover ratio= 37.957614, No.of days in receivables= 9.615989, Payable turnover ratio= 26.0353, No of days in payable=14.0194, Working capital turnover= 1.111081, Cash conversion cycle= 20.342262(YEAR 2015)

Inventory turnover ratio= 23.872628, No. of days in inventory=15.28948, Receivables turnover ratio= 52.9922021, No.of days in receivables= 6.8878059, Payable turnover ratio= 14.9294, No of days in payable= 24.4485, Working capital turnover= 1.479644, Cash conversion cycle= -2.271193(YEAR 2016)

Inventory turnover ratio= 18.088527, No. of days in inventory=20.17854, Receivables turnover ratio= 192.388881, No.of days in receivables= 1.897199, Payable turnover ratio= 25.9389, No of days in payable=14.0715, Working capital turnover= 2.471969, Cash conversion cycle= 8.004218(YEAR 2017)

VALUATION RATIOS

Market price per share= 120.45, Earnings per share= 16.0155, Price earnings ratio= 7.520818, Dividend payout ratio= 0.23, Cash dividend per share= 2.5, Book value per= 148.55(YEAR 2013)

Market price per share= 87.96, Earnings per share= 13.74859, Price earnings ratio= 6.39774684, Dividend payout ratio= 0.2545716, Cash dividend per share= 3.5, Book value per= 141.252(YEAR 2014)

Market price per share= 142.77, Earnings pershare= 17.92927, Price earnings ratio= 7.962955, Dividend payout ratio= 0.2788735, Cash dividend per share= 5, Book value per= 147.619(YEAR 2015)

Market price per share= 190.49, Earnings pershare= 19.13036, Price earnings ratio= 9.957470, Dividend payout ratio= 0.31363, Cash dividend per share= 6, Book value per= 154.607(YEAR 2016)

Market price per share= 213.16, Earnings pershare= 17.92541, Price earnings ratio= 11.8915, Dividend payout ratio= 0.4184005, Cash dividend pershare= 7.5, Book value per= 179.987(YEAR 2017)

SOLVENCY RATIOS

Debt Equity Ratio=0.3512274, Debt to Assets Ratio=0.21, Debt to Capital Ratio= 0.17, Interest Cover Ratio= 7.6335585(YEAR 2013)

Debt Equity Ratio= 0.2091102, Debt to Assets Ratio=0.1848, Debt to Capital Ratio= 0.190229, Interest Cover Ratio= 12.2218(YEAR 2014)

Debt Equity Ratio= 0.2099753, Debt to Assets Ratio=0.177424, Debt to Capital Ratio= 0.19209Interest Cover Ratio= 30.0679(YEAR 2015)

Debt Equity Ratio= 0.27324, Debt to Assets Ratio=0.22503, Debt to Capital Ratio= 0.244117Interest Cover Ratio= 82.9939(YEAR 2016)

Debt Equity Ratio= 0.4493816, Debt to Assets Ratio=0.349124, Debt to Capital Ratio= 0.359906Interest Cover Ratio= 31.541006(YEAR 2017)