Running finanacial ratios for Allstate company from 2006 to 2011

malik_11-12.xlsx

Income Statement

	Year	2011	2010	2009	2008	2007	2006	Numbers is $000,000's except for ratios*
	Total Revenue	$ 32,654	$ 31,400	$ 32,013	$ 29,394	$ 36,769	$ 35,796
	Net Income	$ 788	$ 928	$ 854	$ (1,679)	$ 4,636	$ 4,993
	Inerest Expense	$ 367	$ 367	$ 392	$ 351	$ 333	$ 357
	Total Assets	$ 125,563	$ 130,874	$ 132,652	$ 134,798	$ 156,408	$ 157,554
	Total Equity	$ 18,702	$ 19,044	$ 16,721	$ 12,673	$ 21,851	$ 21,846
	Operating Income	$ 960	$ 1,126	$ 1,248	$ (3,025)	$ 6,653	$ 7,178
	Year	2011	2010	2009	2008	2007	2006
1	Return on Assets	0.63%	0.71%	0.64%	-1.25%	2.96%	3.17%
2	Return on Equity	4.21%	4.87%	5.11%	-13.25%	21.22%	22.86%
3	Debt to Equity Ratio	5.71	5.87	6.93	9.64	6.16	6.21
6	Equity Multiplier	6.71	6.87	7.93	10.64	7.16	7.21
5	Times Interest Earned	2.62	3.07	3.18	(8.62)	19.98	20.11
	Allstate Insurance company was also adversely affected by the banking crisis of 2008. We can see that from 2006 to 2008, their profits went from small to negative. The company had enjoyed of aan attractive return on equiry of 22.86% in 2006. Yet, the financial crisis made 2008 the only year in the 6-year period evaluated where its return on equity fell to a negative 13.25%. This is consistent with the phenomenon that most financial institutions experienced at the time. Allstate, ha slowly come back to a level of profitability; but it strugls to reach the level of earnings that it once enjoyed.