Unit 6 Assignment 5 – Ratio Analysis

brandon282011
AC216Unit6Assignment5-RatioAnalysis.xlsx

Problem 5

Lavon Lake Marina
INCOME STATEMENT Last Year This year
NET SALES 432 515
COST OF GOOD SOLD 175 230
Gross Profit 257 285
Other 20 30
Depreciation 25 22
EBIT 212 233
Interest 30 33
EBT 182 200
Taxes 55 57
Net Income 127 143
Pref Stock Div 5 5
Net Inc avail Cstock 122 138
Comm Stock div 65 65
Addition to RE 57 73
Per Share Data
Earnings Per share 1.95 2.20
Div per share 1.0 1.0
Book Value per share 4.800 6.154
Market value 12.55 14.75
Shares Out 65.00 65.00
Lavon Lake Marina
BALANCE SHEET Last Year This year
CURRENT ASSETS
CASH + Mkt Sec 65 75
ACCOUNTS REC 110 115
INVENTORY 190 200
CURENT ASSETS 365 390
Fixed Assets
Gross PPE 471 580
Less Depreciation 100 110
Net PPE 371 470
Other Long term assets 49 50
Total Long term assets 420 520
TOTAL ASSETS 785 910
CURRENT LIABILITIES
Accrued taxes & wages 43 40
Accounts Pay 80 90
Notes Pay 70 80
Total Current Liabilities 193 210
LONG TERM DEBT 280 300
Total Liabilities 473 510
STOCK EQUITY
Preferred Stock 5 5
Common Stock 65 65
Retained Earnings 242 330
Total Equity 312 400
TOTAL LIABL AND ST EQUITY 785 910
Calculate the following ratios for THIS YEAR
This year Industry
Working Capital Current assets- liab
Net working capital
Current Ratio Current assets 2
curr liab
Acid/Quick Ratio Curr Assts-inventory 1.2
Current liabilities
Cash Ratio Cash + mkt securities 0.25
Current Liabilities
Inventory Turn Sales or Cost of goods sold 3.6
inventory
Days in Inventory Inventory x 365 101.39
Sales or CGS
Ave Collection Period Receivables x 365 32.5
Credit sales
Receivables Turnover Credit Sales
receivables
Average Payment period Accounts pay x 365 45
CGS
Accounts Payable turnover CGS
Accounts payable
Fixed Asset Turnover Sales 1.25
Fixed Assets
Sales to Working Capital Sales 4.25
Working Capital
Total Asset Turnover Sales 0.85
Total assets
Capital Intensity Ratio Total Assets 1.18
Sales
Debt Ratio Total debt 62.5
total assets
Debt to Equity Ratio Total Debt 1.67
Total Equity
Equity Multiplier Ratio Total Assets 2.67
Total Equity
Times Interest Earned EBIT 8.5
Interest
Cash Coverage Ratio EBIT + Depreciation 8.75
Fixed Charges (Int)
Profit Margin Net income 28.75%
sales
Earnings Per Share Net Income
# shares outstanding
Price/Earnings Ratio Price per share 15.6
EPS
Basic Earnings Power EBIT 32.50%
TOTAL ASSETS
Return on Assets Net Income 19.75%
Total assets
Return on Equity Net Income 36.88%
Total Equity
Dividend Payout Ratio Common Dividends 35
Net income
Book Value Total Equity
# shares outstanding
Market to Book value ratio Price per share 2.55
Book value per share
Comment on the Marina's overall financial health