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What are the coverage ratios for the following data (using fomrula below)? Please show how you came up with solution. Thank you Times interest earned
What are the coverage ratios for the following data (using fomrula below)? Please show how you came up with solution. Thank you
Times interest earned = EBIT / Interest expense = ??
Times burden covered = EBIT / Interest + Principal repayment / 1 - tax rate = ??
APPLE, Inc. BALANCE SHEET | ||
2014-09 | 2015-09 | |
Assets | ||
Cash | ||
Cash and cash equivalents | $13,844,000 | $21,120,000 |
Short-term investments | $11,233,000 | $20,481,000 |
Total cash | $25,077,000 | $41,601,000 |
Receivables | $17,460,000 | $16,849,000 |
Inventories | $2,111,000 | $2,349,000 |
Deferred income taxes | $4,318,000 | $5,546,000 |
Other current assets | $19,565,000 | $23,033,000 |
Total current assets | $68,531,000 | $89,378,000 |
Non-current assets | ||
Gross property, plant and equipment | $39,015,000 | $49,257,000 |
Accumulated Depreciation | -$18,391,000 | -$26,786,000 |
Net property, plant and equipment | $20,624,000 | $22,471,000 |
Equity and other investments | $130,162,000 | $164,065,000 |
Goodwill | $4,616,000 | $5,116,000 |
Intangible assets | $4,142,000 | $3,893,000 |
Other long-term assets | $3,764,000 | $5,556,000 |
Total non-current assets | $163,308,000 | $201,101,000 |
Total assets | $231,839,000 | $290,479,000 |
Liabilities and stockholders' equity | ||
Liabilities | ||
Short-term debt | $6,308,000 | $10,999,000 |
Accounts payable | $30,196,000 | $35,490,000 |
Taxes payable | $1,209,000 | $0 |
Accrued liabilities | $7,689,000 | $25,181,000 |
Deferred revenues | $9,548,000 | $8,940,000 |
Other current liabilities | $8,498,000 | $0 |
Total current liabilities | $63,448,000 | $80,610,000 |
Non-current liabilities | ||
Long-term debt | $28,987,000 | $53,463,000 |
Deferred taxes liabilities | $20,259,000 | $24,062,000 |
Deferred revenues | $3,031,000 | $3,624,000 |
Other long-term liabilities | $4,567,000 | $9,365,000 |
Total non-current liabilities | $56,844,000 | $90,514,000 |
Total liabilities | $120,292,000 | $171,124,000 |
Stockholders' equity | ||
Common stock | $23,313,000 | $27,416,000 |
Additional paid-in capital | $0 | $0 |
Retained earnings | $87,152,000 | $92,284,000 |
Accumulated other comprehensive income | $1,082,000 | -$345,000 |
Total stockholders' equity | $111,547,000 | $119,355,000 |
Total liabilities and stockholders' equity | $231,839,000 | $290,479,000 |
APPLE Inc. Statement of CASH FLOW | ||
2014-09 | 2015-09 | |
Cash Flows From Operating Activities | ||
Net income | $39,510,000 | $53,394,000 |
Depreciation & amortization | $7,946,000 | $11,257,000 |
Deferred income taxes | $2,347,000 | $1,382,000 |
Stock based compensation | $2,863,000 | $3,586,000 |
Accounts receivable | -$4,232,000 | $611,000 |
Inventory | -$76,000 | -$238,000 |
Accounts payable | $5,938,000 | $5,400,000 |
Other working capital | $5,417,000 | $5,874,000 |
Other non-cash items | $0 | $0 |
Net cash provided by operating activities | $5,971,300 | $81,266,000 |
Cash Flows From Investing Activities | ||
Investments in property, plant, and equipment | -$9,571,000 | -$11,247,000 |
Acquisitions, net | -$3,765,000 | -$343,000 |
Purchases of investments | -$217,128,000 | -$166,402,000 |
Sales/Maturities of investments | $208,111,000 | $121,985,000 |
Purchases of intangibles | -$242,000 | -$241,000 |
Other investing activities | $16,000 | -$26,000 |
Net cash used for investing activities | -$22,579,000 | -$56,274,000 |
Cash Flows From Financing Activities | ||
Debt issued | $18,266,000 | $0 |
Debt repayment | $0 | $0 |
Common stock issued | $730,000 | $543,000 |
Common stock repurchased | -$45,000,000 | -$35,253,000 |
Dividend paid | -$11,126,000 | -$11,561,000 |
Other financing activities | -$419,000 | $28,555,000 |
Net cash provided by (used for) financing activities | -$37,549,000 | -$17,716,000 |
Net change in cash | -$415,000 | $7,276,000 |
Cash at beginning of period | $14,259,000 | $13,844,000 |
Cash at end of period | $13,844,000 | $21,120,000 |
Free Cash Flow | ||
Operating cash flow | $59,713,000 | $81,266,000 |
Capital expenditure | -$9,813,000 | -$11,488,000 |
Free cash flow | $49,900,000 | $69,778,000 |
APPLE Inc. INCOME STATEMENT | ||
2014-09 | 2015-09 | |
Revenue | $182,795,000 | $233,715,000 |
Cost of revenue | $112,258,000 | $140,089,000 |
Gross profit | $70,537,000 | $93,626,000 |
Operating expenses | ||
Research and development | $6,041,000 | $8,067,000 |
Sales, General and administrative | $11,993,000 | $14,329,000 |
Total operating expenses | $18,034,000 | $22,396,000 |
Operating income | $52,503,000 | $71,230,000 |
Interest Expense | $384,000 | $733,000 |
Other income (expense) | $1,364,000 | $2,018,000 |
Income before taxes | $53,483,000 | $72,515,000 |
Provision for income taxes | $13,973,000 | $19,121,000 |
Net income from continuing operations | $39,510,000 | $53,394,000 |
Net income | $39,510,000 | $53,394,000 |
Net income available to common shareholders | $39,510,000 | $53,394,000 |
Earnings per share | ||
Basic | 6.49 | 9.28 |
Diluted | 6.45 | 9.22 |
Weighted average shares outstanding | ||
Basic | $6,086,000 | $5,753,000 |
Diluted | $6,123,000 | $5,793,000 |
EBITDA | $61,813,000 | $84,505,000 |
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