case study analysis and recommendations

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GeminiElectronicsFinancialAnalysis.xlsx
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ratios

2005 2006 2007 2008 2009 Industry Average
Current Ratio 2.84
Cash Ratio 0.05
Parts Inventory Turnover in Days 32.26
Work In Progress Turnover in Days 7.89
Final Inventory Turnover in Days 188.33
A/R Turnover in Days 30.44
A/P Turnover in Days 66.11
Cash Conversion Cycle 192.81
Fixed Assets Turnover 2.42
Total Assets Turnover 1
Debt Ratio 0.5
LT Debt Total Capitalization
Times Interest Earned 3.21
Cash Flow Coverage
Gross Profit Margin 38%
Operating Profit Margin 7.41%
Net Profit Margin 3.32%
ROA 2.16%
REO 6.60%

vertical analysis

2005 2006 2007 2008 2009 Industry Average
Sales 100.00 100.00 100.00 100.00 100.00 100
COGS 62
Gross Profit 38
Operating Costs
Selling & Distribution 10.89
R&D 7.01
Administration 8.34
Depreciation 4.35
Operating Profit 7.41
Interest 2.32
EBT 5.1
Taxes -1.79
Net Income 3.32
2005 2006 2007 2008 2009 Industry Average
Cash 4.54
A/R 8.34
Parts Inventory 5.48
WIP Inventory 1.34
Finished Goods Inventory 31.99
Total Current Assets 51.69
Land, Plant & Equip 41.34
Other Assets 6.97
Total Assets 100.00 100.00 100.00 100.00 100.00 100
A/P 11.23
Current Portion of LT Debt 7
Total Current Liabilities 18.23
Long-term Debt 31.5
Shareholders' Equity 50.27
Total Liabilities & Equity 100.00 100.00 100.00 100.00 100.00 100

horizontal analysis

2005 2006 2007 2008 2009
Sales 2,142,659,000 5,413,625,000 8,671,715,000 12,175,476,500 13,664,714,160
COGS 1,323,957,000 3,120,000,500 5,032,513,200 7,886,796,000 8,974,149,576
Gross Profit 818,702,000 2,293,624,500 3,639,201,800 4,288,680,500 4,690,564,584
Operating Costs
Selling & Distribution 212,340,640 545,980,400 854,300,000 934,532,230 1,001,234,530
R&D 93,640,450 220,340,340 365,660,340 476,350,230 785,774,340
Administration 95,003,300 405,340,300 832,740,300 999,453,230 980,340,500
Depreciation 81,414,429 122,465,588 187,929,165 288,216,088 394,440,051
Operating Profit 336,303,182 999,497,873 1,398,571,995 1,590,128,722 1,528,775,163
Interest 53,251,456 145,434,234 288,898,584 277,686,944 329,923,700
EBT 283,051,726 854,063,638 1,109,673,411 1,312,441,778 1,198,851,462
Taxes 99,068,104 298,922,273 388,385,694 459,354,622 419,598,012
Net Income 183,983,622 555,141,365 721,287,717 853,087,156 779,253,450
2005 2006 2007 2008 2009
Cash 310,630,300 790,419,373 1,437,227,573 1,366,526,361 1,413,474,400
A/R 316,972,950 758,988,750 1,201,094,250 1,328,523,975 1,503,560,340
Parts Inventory 253,578,360 607,191,000 960,875,400 1,062,819,180 1,201,345,530
WIP Inventory 26,789,180 45,354,460 66,650,675 75,640,210 89,575,400
Finished Goods Inventory 359,340,630 960,187,250 1,451,230,215 1,605,660,505 1,805,340,520
Total Current Assets 1,267,311,420 3,162,140,833 5,117,078,113 5,439,170,231 6,013,296,190
Land, Plant & Equip 710,727,625 812,956,891 1,317,388,220 2,281,077,095 3,363,891,508
Other Assets 103,416,660 411,698,984 561,903,428 601,083,781 580,509,006
Total Assets 2,081,455,705 4,386,796,708 6,996,369,761 8,321,331,107 9,957,696,704
A/P 422,630,600 1,011,985,000 1,305,530,320 1,509,430,300 1,564,430,450
Current Portion of LT Debt 147,920,710 341,394,916 607,184,919 651,847,287 785,532,620
Total Current Liabilities 570,551,310 1,353,379,916 1,912,715,239 2,161,277,587 2,349,963,070
Long-term Debt 739,603,550 1,706,974,582 3,035,924,595 3,259,236,437 3,927,663,101
Shareholders' Equity 771,300,845 1,326,442,210 2,047,729,927 2,900,817,082 3,680,070,533
Total Liabilities & Equity 2,081,455,705 4,386,796,708 6,996,369,761 8,321,331,106 9,957,696,704

analysis of ROE

2005 2006 2007 2008 2009
EBIT/sales
EBT/EBIT
NI/EBT
Total Asset Turnover
Debt Ratio (%)
ROE (%)