Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Some recent financial statements for the luxury goods company LVMH Moet Hennessy Louis Vuitton SA follow. Income Statements for LVMH Moet Hennessy Louis Vuitton Y/E
Some recent financial statements for the luxury goods company LVMH Moet Hennessy Louis Vuitton SA follow. |
Income Statements for LVMH Moet Hennessy Louis Vuitton | |||||
Y/E | Y/E | ||||
2016 | 2015 | ||||
m | m | ||||
Revenue | 17,193 | 16,481 | |||
Cost of Revenue | 6,012 | 5,786 | |||
Gross Profit | 11,181 | 10,695 | |||
Selling/General/Admin. Expenses | 7,553 | 7,140 | |||
Amortization | 0 | 6 | |||
Unusual Expense (Income) | 126 | 116 | |||
Other Operating Expenses, Total | 17 | 4 | |||
Operating Profit | 3,485 | 3,429 | |||
Interest Expense | -255 | -241 | |||
Interest/Invest Income | 15 | 30 | |||
Other, Net | -41 | -41 | |||
Profit Before Taxes | 3,204 | 3,177 | |||
Provision for Income Taxes | 893 | 853 | |||
Profit After Taxes | 2,311 | 2,324 | |||
Minority Interest | -292 | -306 | |||
Equity In Affiliates | 7 | 7 | |||
Profit Attributable to Shareholders | 2,026 | 2,025 | |||
Statements of Financial Position LVMH Moet Hennessy Louis Vuitton | ||||||||
Dec 16 | Dec 15 | Dec 16 | Dec 15 | |||||
m | m | m | m | |||||
Current Assets | Current Liabilities | |||||||
Cash and Short-Term Investments | 1,013 | 1,559 | Trade Payables | 2,292 | 2,095 | |||
Trade Receivables | 1,650 | 1,595 | Accrued Expenses | 1,866 | 1,552 | |||
Notes Payable/Short-Term Debt | ||||||||
Receivables - Other | 229 | 151 | 1,571 | 2,212 | ||||
Current Port. of LT | ||||||||
Total Inventory | 5,767 | 4,812 | Debt/Capital Leases | 276 | 926 | |||
Other Current Assets | 1,695 | 2,001 | Other Current liabilities | 610 | 628 | |||
Total Current Assets | 10,354 | 10,118 | Total Current Liabilities | 6,615 | 7,413 | |||
Non-Current Assets | Non-Current Liabilities | |||||||
Property/Plant/Equipment | 6,081 | 5,419 | Total Long-Term Debt | 3,738 | 2,477 | |||
Goodwill, Net | 4,423 | 4,818 | Deferred Income Tax | 3,113 | 2,843 | |||
Intangibles, Net | 8,523 | 7,999 | Minority Interest | 989 | 938 | |||
Long Term Investments | 591 | 952 | Other Liabilities | 4,224 | 5,123 | |||
Other Long-Term Assets | 1,511 | 1,078 | Total Non-Current Liabilities | 12,064 | 11,381 | |||
Total Non-Current Assets | 21,129 | 20,266 | Total Liabilities | 18,679 | 18,794 | |||
Shareholders Equity | ||||||||
Ordinary Shares | 147 | 147 | ||||||
Additional Paid-In Capital | 1,737 | 1,736 | ||||||
Retained Earnings | ||||||||
(Accumulated Deficit) | 12,274 | 11,192 | ||||||
Treasury Stock - Common | -983 | -877 | ||||||
Other Equity, Total | -371 | -608 | ||||||
Total Equity | 12,804 | 11,590 | ||||||
Total Liabilities & | ||||||||
Total Assets | 31,483 | 30,384 | Shareholders' Equity | 31,483 | 30,384 | |||
Find the following financial ratios for LVMH Moet Hennessy Louis Vuitton SA (use year-end figures rather than average values where appropriate) (Round your answers to 2 decimal places (e.g., 32.16).) : |
2015 | 2016 | |
Short-term solvency ratios: | ||
Current ratio | 1.36 | 1.57 |
Quick ratio | 0.7261 | 0.69 |
Cash Ratio | 0.2161 | 0.1561 |
Asset utilization ratios: | ||
Total asset turnover | 0.54 | 0.55 |
Inventory turnover | ||
Receivables turnover | ||
Long-term solvency ratios: | ||
Total debt ratio | 0.62 | 0.5961 |
Debtequity ratio | 1.6261 | 1.4661 |
Equity multiplier | 2.6261 | 2.4661 |
Times interest earned ratio | 14.23 | 13.67 |
Profitability ratios: | ||
Profit margin | % | % |
Return on assets | % | % |
Return on equity | 17.47 % | 15.82% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started