accounting project

ROA = Net Income / Average total assets

= 6329/((74129+69667)/2) = 0.09

NOA = Operating assets - Operating liabilities

= (6694+2723+1547+16591+1237+14430+12196+636)-(14243+5073) = 36738

RNOA = NOPAT / Average NOA

= 7179.8 / ((36738+36881)/2) = 0.20

NOPAT = NOPBT - (Tax expense + Pretax net non-operating expense * Statutory tax rate)

= 9785-(2174+(1342-110)*0.35) = 7179.80

NOPM = NOPAT / Sales

= 7179.8/62799 = 0.11

NOAT = Sales / Average NOA

= 62799/((36738+36881)/2) = 1.71

Credit Risk Ratios

Times interest earned = (Earnings before tax+ Interest expense) / Interest expense

= (8553+1342)/1342 = 7.37

EBITDA coverage = (Earning before tax + Interest expense + Depreciation + Amortization) / Interest expense

= (8553+1342+2368)/1342 = 9.14

Cash from operations to total debt = Cash from operations / (Short-term debt + Long-term debt)

= (10673/(30053+6892) = 0.29

Free operating cash flow to total debt = (Cash from operations - CAPEX) / (Short-term debt + Long-term debt)

= (10673-3040)/(30053+6892)=0.21

Current ratio = Current assets / Current liabilities

= 27089 / 21135 = 1.28

Quick ratio = (Cash + Marketable securities + Accounts receivables) / Current liabilities

= (9158+6694)/21135 = 0.75

Liabilities-to-equity ratio = Total liabilities / Stockholders’ equity

= 62930 / 11199 = 5.62

Total debt-to-equity = (Long-term debt including current portion + Short-term Debt) / Stockholders’ equity

= (34454+6892)/11256 = 3.68

Z-score = 1.2*Working Capital / Total Assets + 1.4*Retained Earnings / Total Assets + 3.3*EBIT / Total Assets + 0.6*Market Value of Equity / Total Liabilities + 0.99*Sales / Total Assets

= 1.2*(27089-21135)/74129+

1.4*52518/74129+

3.3*10509/74129+

0.6*147958/62930+

0.99*62799/74129= 3.805

Coca-Cola calculations

Profitability Ratio Analysis

ROE = Net Income / Average stockholders’ equity

= 6527/[(23062+25554)/2]= 0.27

ROA = Net Income / Average total assets

= 6527/((87270+89996)/2)= 0.07

NOA = Operating assets - Operating liabilities

NOA2016= (3856+2675+2481+10635+4248+6097+3676+10629+726)-(9490+3753)= 31780

NOA2015=(3941+2902+2752+12571+4110+5989+6000+11289+854)-(9660+2676)= 38072

RNOA = NOPAT / Average NOA

= 7022.26/((31780+38072)/2)= 0.2

NOPAT = NOPBT - (Tax expense + Pretax net non-operating expense * Statutory tax rate)

= 8626-(1586+(733-642)*0.35)= 7008.15

NOPM = NOPAT / Sales

= 7022.26/41863= 0.17

NOAT = Sales / Average NOA

= 41863/((31780+38072)/2)= 1.2

Credit Risk Ratios

Times interest earned = (Earnings before tax+ Interest expense) / Interest expense

= (8136+733)/733= 12.1

EBITDA coverage = (Earning before tax + Interest expense + Depreciation + Amortization) / Interest expense

= (8136+733+1787)/733= 14.54

Cash from operations to total debt = Cash from operations / (Short-term debt + Long-term debt)

= 18150/(12500+29684)= 0.43

Free operating cash flow to total debt = (Cash from operations - CAPEX) / (Short-term debt + Long-term debt)

= (8555-226)/(12498+29684)= 0.2

Current ratio = Current assets / Current liabilities

= 87270/26532= 3.29

Quick ratio = (Cash + Marketable securities + Accounts receivables) / Current liabilities

= (8796+4051+3856)/26532= 0.63

Liabilities-to-equity ratio = Total liabilities / Stockholders’ equity

= 26532/23060= 1.15

Total debt-to-equity = (Long-term debt including current portion + Short-term Debt) / Stockholders’ equity

= (12500+29684)/23060= 1.83

Z-score = 1.2*Working Capital / Total Assets + 1.4*Retained Earnings / Total Assets + 3.3*EBIT / Total Assets + 0.6*Market Value of Equity / Total Liabilities + 0.99*Sales / Total Assets

=1.2*7478/87270+

1.4*23062/87270+

3.3*60430/87270+

0.6*17778/26532+

0.99*41380/87270= 3.629

Analyze

Profitability Ratio Analysis

Return On Equity (ROE) measures return from the perspective of the company’s stockholders. ROE reflects both company performance (ROA) and How assets are financed.

Return on assets (ROA) is a financial ratio that shows the percentage of profit a company earns in relation to its overall resources. It is commonly defined as net income divided by total assets. Net income is derived from the income statement of the company and is the profit after taxes.

The higher the ROA, the better the management

Net operating assets

Return on net assets (RONA) is a measure of financial performance calculated asnet income divided by fixed assets and net working capital. RONA can be used to discern how well a company is performing versus others in its industry.

Net operating profit after tax (NOPAT) is a measure of profit that excludes the costs and tax benefits of debt financing. Put another way, NOPAT is earnings before interest and taxes (EBIT) adjusted for the impact oftaxes.

Coverage analysis considers a company’s ability to generate profit and cash to cover principal and interest payments when due.

Times interest earned reflects the operating income available to pay interest expense.

EBITDA coverage is more widely used than the time interest earned ratio because depreciation does not require a cash outflow; it measures company’s ability to pay interest out of current profits. It always higher than time interest out of current profit.

Cash from operations to total debt measures a company’s ability to generate additional cash to cover debt payments as they come due.

Free operating cash flow to total debt considers excess operating cash flow after cash is spent on capital expenditures.

Liquidity analysis refers to cash availability, it considers how much can be raised on a short notice. A company’s ability to pay upcoming bills.

Current ratio measures the ability of a company to cover its short-term liabilities with its current assets.

The quick ratio focuses on quick assets. It is an indicator of a company’s short-term liquidity and measures a company’s ability to meet its short-term obligations with its most liquid.

· A higher quick ratio means a more liquid current position.

· A company with quick ratio less than 1 cannot pay its liabilities.

Solvency Analysis assesses a company’s ability to meet its long-term obligations. Solvency is crucial since an insolvent company is a failed company.

Liabilities-to-equity ratio conveys how reliant a company is on creditor financing compared with equity financing.

Total debt-to-equity

Z-score interpretation assess a company’s bankruptcy risk.

3.81 is greater than 3.00 is mean the company is healthy and there is low bankruptcy potential in the short term.