Rush Creek Company Ratio Analysis CY LY Current Year = CY Last Year = LY Liquidity Ratios Current Ratio Quick Ratio Asset Management Ratios Inventory Tumover Days Sales Outstanding (DSO) Total Asset Tumover Debt Management Ratios Debt to Equity Ratio Debt Ratio Times Interest Earned A/P Days Profitability Ratios Profit Margin Return on Assets Return on Equity Return on Invested Capital Market / Valuation Ratios Earings Per Share (EPS) Price / Eamings Ratio Market Capitalization Total Shareholder Return N/A 1) What two things should always be done in conjuction with any ratio analysis? 2) What are some limitations / issues with ratio analysis? Calculations CA / CL (CA - Inv.) / CL COGS / Inv. A/R/Avg. Daily Sales Sales / TA Debt / Equity Debt / Total Assets EBIT / Interst Exp. A/P / Avg. Daily COGS Net Income / Sales Net Income / TA Net Income / Equity EBIT (1-TR) / Invested Capital (use total liabs & equity for invested capital) Net Income / # Shares Share Price / EPS # Shares* Share Price (Dividends + SPA) / Original Investment (spa share price appreciation) (000's) Sales: United States Europe Canada Total Sales COGS: Labor Raw Materials Production Total COGS Other Expenses: Selling Advertising Administrative Total Expenses Operating Income Rush Creek Monthly Results January - Current Year Actual $ 180 $ 50 $ 20 $ 250 50 20 80 $ 150 $ 36 $ 12 $ 24 $ 72 $ 28 $ LA LA LA SA LA LA LA LA $ $ $ LA LA LA Favorable or (Unfavorable) Versus: Budget Last Year $ % 20 (15) (7) (3) (25) 4295 9 15 3104 3 0 4 (6) -8% -12% -13% -9% 7% 9% 10% 9% 8% 8% 0% 5% -18% $ $ 6031 6 3 29 (5) (2) (10) (17) (4) (2) (2) (8) 4 % 13% 14% 18% 13% -11% -11% -14% -16% -13% -20% -9% -13% 17% Rush Creek Company Ratio Analysis CY LY Current Year = CY Last Year = LY Liquidity Ratios Current Ratio Quick Ratio Asset Management Ratios Inventory Tumover Days Sales Outstanding (DSO) Total Asset Tumover Debt Management Ratios Debt to Equity Ratio Debt Ratio Times Interest Earned A/P Days Profitability Ratios Profit Margin Return on Assets Return on Equity Return on Invested Capital Market / Valuation Ratios Earings Per Share (EPS) Price / Eamings Ratio Market Capitalization Total Shareholder Return N/A 1) What two things should always be done in conjuction with any ratio analysis? 2) What are some limitations / issues with ratio analysis? Calculations CA / CL (CA - Inv.) / CL COGS / Inv. A/R/Avg. Daily Sales Sales / TA Debt / Equity Debt / Total Assets EBIT / Interst Exp. A/P / Avg. Daily COGS Net Income / Sales Net Income / TA Net Income / Equity EBIT (1-TR) / Invested Capital (use total liabs & equity for invested capital) Net Income / # Shares Share Price / EPS # Shares* Share Price (Dividends + SPA) / Original Investment (spa share price appreciation) (000's) Sales: United States Europe Canada Total Sales COGS: Labor Raw Materials Production Total COGS Other Expenses: Selling Advertising Administrative Total Expenses Operating Income Rush Creek Monthly Results January - Current Year Actual $ 180 $ 50 $ 20 $ 250 50 20 80 $ 150 $ 36 $ 12 $ 24 $ 72 $ 28 $ LA LA LA SA LA LA LA LA $ $ $ LA LA LA Favorable or (Unfavorable) Versus: Budget Last Year $ % 20 (15) (7) (3) (25) 4295 9 15 3104 3 0 4 (6) -8% -12% -13% -9% 7% 9% 10% 9% 8% 8% 0% 5% -18% $ $ 6031 6 3 29 (5) (2) (10) (17) (4) (2) (2) (8) 4 % 13% 14% 18% 13% -11% -11% -14% -16% -13% -20% -9% -13% 17%