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The following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2018 and 2017 (in
The following financial statements for Lake of Egypt Marina, Inc.
LAKE OF EGYPT MARINA, INC. | ||||||||||||||||
Balance Sheet as of December 31, 2018 and 2017 | ||||||||||||||||
(in millions of dollars) | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Assets | Liabilities and Equity | |||||||||||||||
Current assets: | Current liabilities: | |||||||||||||||
Cash and marketable securities | $ | 75 | $ | 65 | Accrued wages and taxes | $ | 40 | $ | 43 | |||||||
Accounts receivable | 115 | 110 | Accounts payable | 90 | 80 | |||||||||||
Inventory | 200 | 190 | Notes payable | 80 | 70 | |||||||||||
Total | $ | 390 | $ | 365 | Total | $ | 210 | $ | 193 | |||||||
Fixed assets: | Long-term debt: | $ | 300 | $ | 280 | |||||||||||
Gross plant and equipment | $ | 580 | $ | 471 | Stockholders equity: | |||||||||||
Less: Depreciation | 110 | 100 | Preferred stock (5 million shares) | $ | 5 | $ | 5 | |||||||||
Net plant and equipment | $ | 470 | $ | 371 | Common stock and paid-in surplus | |||||||||||
(65 million shares) | 65 | 65 | ||||||||||||||
Other long-term assets | 50 | 49 | Retained earnings | 330 | 242 | |||||||||||
Total | $ | 520 | $ | 420 | Total | $ | 400 | $ | 312 | |||||||
Total assets | $ | 910 | $ | 785 | Total liabilities and equity | $ | 910 | $ | 785 | |||||||
LAKE OF EGYPT MARINA, INC. | |||||||
Income Statement for Years Ending December 31, 2018 and 2017 | |||||||
(in millions of dollars) | |||||||
2018 | 2017 | ||||||
Net sales (all credit) | $ | 515 | $ | 432 | |||
Less: Cost of goods sold | 230 | 175 | |||||
Gross profits | $ | 285 | $ | 257 | |||
Less: Other operating expenses | 30 | 25 | |||||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) | 255 | 232 | |||||
Less: Depreciation | 22 | 20 | |||||
Earnings before interest and taxes (EBIT) | $ | 233 | $ | 212 | |||
Less: Interest | 33 | 30 | |||||
Earnings before taxes (EBT) | $ | 200 | $ | 182 | |||
Less: Taxes | 57 | 55 | |||||
Net income | $ | 143 | $ | 127 | |||
Less: Preferred stock dividends | $ | 5 | $ | 5 | |||
Net income available to common stockholders | $ | 138 | $ | 122 | |||
Less: Common stock dividends | 65 | 65 | |||||
Addition to retained earnings | $ | 73 | $ | 57 | |||
Per (common) share data: | |||||||
Earnings per share (EPS) | $ | 2.123 | $ | 1.877 | |||
Dividends per share (DPS) | $ | 1.000 | $ | 1.000 | |||
Book value per share (BVPS) | $ | 6.077 | $ | 4.723 | |||
Market value (price) per share (MVPS) | $ | 14.750 | $ | 12.550 | |||
Lake of Egypt Marina, Inc. | Industry | ||
a. | Current ratio | 2.00 | times |
b. | Quick ratio | 1.20 | times |
c. | Cash ratio | 0.25 | times |
d. | Inventory turnover | 3.60 | times |
e. | Days sales in inventory | 101.39 | days |
f. | Average collection period | 32.50 | days |
g. | Average payment period | 45.00 | days |
h. | Fixed asset turnover | 1.25 | times |
i. | Sales to working capital | 4.25 | times |
j. | Total asset turnover | 0.85 | times |
k. | Capital intensity | 1.18 | times |
l. | Debt ratio | 62.50 | % |
m. | Debt-to-equity | 1.67 | times |
n. | Equity multiplier | 2.67 | times |
o. | Times interest earned | 8.50 | times |
p. | Cash coverage | 8.75 | times |
q. | Profit margin | 28.75 | % |
r. | Gross profit margin | 56.45 | % |
s. | Operating profit margin | 46.78 | % |
t. | Basic earnings power | 32.50 | % |
u. | ROA | 19.75 | % |
v. | ROE | 36.88 | % |
w. | Dividend payout | 35.00 | % |
x. | Market-to-book ratio | 2.55 | times |
y. | PE ratio | 15.60 | times |
Using the ratios for Lake of Egypt Marina shown above, what can you conclude about Lake of Egypt Marinas financial performance for 2018?
liquidity ?
Asset management ?
Profit ratio?
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