Acct case study
hugh123
RatioAnalysisTemplate.xlsxCommon-Size IS
| SDG | |||||||||
| Income Statement | Common-Size Income Statement | ||||||||
| 2012-2013 | 2013-2014 | 2014-2015 | 2012-2013 | 2013-2014 | 2014-2015 | ||||
| Income Statement | Income Statement | ||||||||
| Cash Sales | 200 | 480 | 800 | Cash Sales | |||||
| Credit Sales | 1,800 | 4,320 | 7,200 | Credit Sales | |||||
| Total Revenue | $ 2,000 | $ 4,800 | $ 8,000 | Total Revenue | |||||
| COGS | 1,240 | 2,832 | 4,800 | COGS | |||||
| Gross Profit | 760 | 1,968 | 3,200 | Gross Profit | |||||
| Operating Expenses | Operating Expenses | ||||||||
| SG&A | 80 | 450 | 1,000 | SG&A | |||||
| Depreciation | 100 | 400 | 660 | Depreciation | |||||
| Interest Expense | 60 | 158 | 340 | Interest Expense | |||||
| Net Income Before Tax | 520 | 960 | 1,200 | Net Income Before Tax | |||||
| Tax @ 30% | 156 | 288 | 360 | Tax @ 30% | |||||
| Net Income | $ 364 | $ 672 | $ 840 | Net Income | |||||
Common-Size BS
| SDG | |||||||||
| Balance Sheet | Common-Size Balance Sheet | ||||||||
| 2012-2013 | 2013-2014 | 2014-2015 | 2012-2013 | 2013-2014 | 2014-2015 | ||||
| Assets | Assets | ||||||||
| Net PPE | $ 1,900 | $ 2,500 | $ 4,700 | Net PPE | |||||
| Current Assets | Current Assets | ||||||||
| Cash & Cash Equivalents | 40 | 100 | 106 | Cash & Cash Equivalents | |||||
| A/R | 300 | 1,500 | 2,100 | A/R | |||||
| Inventories | 320 | 1,500 | 2,250 | Inventories | |||||
| Total Assets | $ 2,560 | $ 5,600 | $ 9,156 | Total Assets | |||||
| Liabilities & Shareholders' Equity | Liabilities & Shareholders' Equity | ||||||||
| Shareholders Equity | Shareholders Equity | ||||||||
| Equity Share Capital | 1,200 | 1,600 | 2,000 | Equity Share Capital | |||||
| Reserve & Surplus | 364 | 1,036 | 1,876 | Reserve & Surplus | |||||
| Total Equity | 1,564 | 2,636 | 3,876 | Total Equity | |||||
| Liabilities | Liabilities | ||||||||
| L/T Borrowings | 736 | 1,236 | 2,500 | L/T Borrowings | |||||
| Current Liabilities | 260 | 1,728 | 2,780 | Current Liabilities | |||||
| Total Liabilities | 996 | 2,964 | 5,280 | Total Liabilities | |||||
| Total L & SE | $ 2,560 | $ 5,600 | $ 9,156 | Total L & SE | |||||
Ratios
| SDG | ||||||
| Ratio Analysis | ||||||
| Formula | Year 1 | Year 2 | Year 3 | Industry Average | ||
| Liquidity | ||||||
| Current Ratio | = Current Assets / Current Liabilities | |||||
| Quick Ratio | = "Current Assets - Inventory - Prepaid Expenses) / Current Liabilities | |||||
| Asset Management | ||||||
| Recivable Turnover Ratio | = Credit Sales / Average Accounts Receivable | |||||
| Receivable Days | = Average Accounts Receivable / Credit Sales / 365 Days | |||||
| Inventory Turnover Ratio | = COGS / Average Inventory | |||||
| Inventory Days | = Average Inventory / COGS / 365 | |||||
| Fixed Asset Turnover | = Sales Revenue / Fixed Assets | |||||
| Total Asset Turnover | = Sales Revenue / Total Assets | |||||
| Debt Management | ||||||
| Debt Ratio | = Total Liabilities / Total Assets | |||||
| Debt-to-Equity Ratio | = Total Liabilities / Total Shareholders' Equity | |||||
| Interest Coverage Ratio | = EBIT / Interest Expense | |||||
| Profitability | ||||||
| Gross Profit Margin Ratio | = Gross Income / Sales Revenue | |||||
| Net Profit Margin Ratio | = Net Income / Sales Revenue | |||||
| Return on Investments | ||||||
| Return on Equity (ROE) | = Net Income / Shareholders' Equity | |||||
| Operating Return on Assets (ROA) | = (Net Income + Interest Expense*(1-Tax Rate)) / Total Assets | |||||
| *L/T Debt / Total Assets | ||||||
| **L/T Debt / Equity Share Capital | ||||||
| ***Net Income / Total Assets |
