Review the requirements of the Chapter 3 Mini-Case, parts b through j. Then apply those requirements to do an analysis of Brinker International, which is a real company. Don't complete the minicase itself, just Brinker. Do the analysis on the basis of the figures for the most recent year. For part g, use the 2 most recent years. Download 10K financial statements for the most recent year for Brinker. A good source is the company's home page. Also compare the Brinker ratios to the industry averages and comment on significant differences. You'll note that some of the company's ratios you calculate won't agree with those found on the web page. Ratios are calculated in different ways, however, you should use the formulas in the text. Also, you won't find all of the industry averages, but you will find most of them. You'll need the company's stock price for several of the ratios; use the fiscal year end price. The company's stock symbol is EAT. http://www.brinker.com

Brinker International, Inc.
	Fiscal Years
Income Statement	2017	2016	2015	2014	2013
Revenues:
Company Sales	$3,062,579	$3,166,659	$2,904,746	$2,823,069	$2,766,618
Franchise and other revanues	88,258	90,830	97,532	86,426	83,100
Total revanues	3,150,837	3,257,489	3,002,278	2,909,495	2,849,718
Operating Costs and Expenses
Company resturants
Cost of sales	791,321	840,204	775,063	758,028	758,377
Resturant Labor	1,017,945	1,036,005	929,206	905,589	892,413
Resturant expenses	773,510	762,663	703,334	686,314	658,834
Company resturant expenses	2,582,776	2,638,872	2,407,603	2,349,931	2,309,624
Depreciation and amortization	156,409	156,368	145,242	136,081	131,481
General and administrative	132,819	127,593	133,476	32,094	134,538
Other gains and charges	22,655	17,180	4,764	49,224	17,300
Total operating costs and expenses	2,894,659	2,940,013	2,691,085	2,567,330	2,592,943
Operating Income	256,178	317,476	311,202	242,165	256,775
Interest Expense	49,547	32,574	29,006	28,091	29,118
Other, net	(1,877)	(1,485)	(2,081)	(2,214)	(2,658)
Income before provision for income tax	208,508	286,387	284,277	216,288	230,315
Privision for Income taxes	57,685	85,767	89,618	62,249	66,956
Net income	$150,823	$200,620	$194,659	$154,039	$163,359
Basic net income per share	$2.98	$3.47	$3.09	$2.33	$2.28
Diluted net income per share	$2.94	$3.42	$3.02	$2.26	$2.20
Basic weighted averages shares outstanding	60,638	57,895	63,072	66,251	71,788
Diluted weighted average shares outstanding	51,250	58,684	64,404	68,152	74,158
Balance Sheet Data
Working capital	($292,036.00)	($257,209.00)	($233,304.00)	($271,426.00)	($191,796.00)
Total assets	1,413,700	1,458,450	1,421,450	1,485,612	1,444,762
Long-term obligations	1,460,953	1,248,375	1,091,734	956,408	905,018
Shareholders' equity	(493,681)	(225,576)	(90,812)	63,094	149,357
Dividends per share	$1.36	$1.28	$1.12	$0.96	$0.80
Number of Resturants Open (EoY)
Company-Owned	1,003	1,001	888	884	877
Franchise	671	659	741	731	714
Total	1,674	1,660	1,629	1,615	1,591
Revanues of Franchisees	$1,331,908	$1,348,616	$1,644,015	$1,616,747	$1,632,076
Brinker International, Inc.
	Fiscal Years
Balance Sheet	2017	2016
Assets
Current Assets
Cash, Cash equivalents	$9,064	$31,446
Accounts receiveable, net	44,658	45,612
Inventories	24,997	25,104
Resturant Supplies	46,380	45,455
Prepaid Expenses	29,293	30,825
Total Current assets	154,392	178,442
Property and equipment
Land	149,098	147,626
Buildings and leasehold	1,655,227	1,626,924
Furniture and equipment	713,228	663,472
Construction in progress	21,767	23,965
	2,539,320	2,461,987
Less accumulated depreciation and amoritization	(1,538,706)	(1,418,835)
Net property and equipment	1,000,614	1,043,152
Other Assets:
Goodwill	163,953	164,007
Deferred income taxes	37,029	14,325
Intangibles	27,512	30,225
Other Assets:	30,200	28,299
Total other assets	258,694	236,856
Total assets	$1,413,700	$1,458,450
Liabilities and Shareholders Deficit
Current Liabilities
Current Installments of long-term debt	$9,649	$3,563
Accounts Payable	104,231	95,414
Gift Card liability	126,482	122,329
Accrued Payroll	70,281	70,999
Other accrued liabilities	121,582	121,324
Income tax payable	14,203	22,022
Total current liabilities	446,428	435,651
Long-term debt, less current installments	1,319,829	1,110,693
Other liabilities	141,124	137,682
Commitments and Contingencies
Shareholders Deficit	17,625	17,625
Common Stock (see notes_	502,074	495,110
Additional paid-in capital	(11,921)	(11,594)
Accumulated other comprehensive loss	2,627,073	2,545,716
Retained earnings	3,134,851	3,046,857
Less tresuray stock, at cost	(3,628,532)	(3,272,433)
total shareholders deficit	(493,681)	(225,576)
Total liabilites and shareholders' deficit	$1,413,700	$1,458,450

a. Why are ratios useful? What three groups use ratio analysis and for what reasons? b. Calculate the 2017 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company's liquidity position in 2015, 2016, and as projected for 2017? We often think of ratios as being useful: (1) to managers to help run the business, (2) to bankers for credit analysis, and (3) to stockholders for stock valuation. Would these different types of analysts have an equal interest in the liquidity ratios? c. Calculate the 2017 inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. How does Computron's utilization of assets stack up against that of other firms in its industry? d. Calculate the 2017 debt ratio, liabilities-to-assets ratio, times-interest-earned ratio, and EBITDA coverage ratios. How does Computron compare with the industry with respect to financial leverage? What can you conclude from these ratios? Part 1 The Company and Its Environment e. Calculate the 2017 profit margin, basic earning power (BEP), return on assets (ROA), f. Calculate the 2017 price/earnings ratio, price/cash flow ratio, and market/book ratio. g. Perform a common size analysis and percentage change analysis. What do these h. Use the extended DuPont equation to provide a summary and overview of i. What are some potential problems and limitations of financial ratio analysis? and return on equity (ROE). What can you say about these ratios? Do these ratios indicate that investors are expected to have a high or low opinion of the company analyses tell you about Computron? Computron's financial condition as projected for 2017. What are the firm's major strengths and weaknesses? j. What are some qualitative factors that analysts should consider when evaluating a company's likely future financial performance