| Ratio Analysis |
| Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventory was $1,237.6 for year 2010. |
| After calculating the various ratios, analyze the overall financial health of Blue Bill Corporation. |
| Values presented on the financial statements are in millions. |
| Blue Bill Corporation | | | | | | Blue Bill Corporation |
| Balance Sheet | | | | | | Income Statement |
| December 31, 2011 | | | | | | 2011 |
| Assets | | | Liabilities and Shareholders' Equity | | | Sales | $ 10,495.0 |
| Current Assets | | | Current liabilities | | | Cost of products sold | 6,700.5 |
| Cash and cash equivalents | $ 483.2 | | Short-term debt | $ 43.4 | | Gross Profit | 3,794.5 |
| Receivables (net of allowance) | 1,045.1 | | Long-term debt due within a year | 151.6 | | Selling and administrative expense | 2,350.9 |
| Inventories | 1,249.4 | | Accounts payable | 1,007.7 | | Operating income | 1,443.6 |
| Other current assets | 273.5 | | Other accrued liabilities | 972.7 | | Other income | (18.3) |
| Total current assets | 3,051.2 | | Total current liabilities | 2,175.4 | | Earnings before interest and taxes | 1,425.3 |
| Property, plan and equipment | | | | | | Interest expense | 295.2 |
| Land | 77.1 | | Long-term liabilities | | | Taxes | 247.8 |
| Buildings | 842.4 | | Long-term debt | 4,559.4 | | Net income | $ 882.3 |
| Equipment | 3,546.0 | | Deferred taxes | 665.3 |
| Less accumulated depreciation | 2,373.7 | | Other long-term liabilities | 784.2 |
| Total property, plant and equipment | 2,091.8 | | Total long-term liabilities | 6,008.9 |
| Other noncurrent assets | 4,932.6 | | Shareholders' equity | 1,891.3 |
| Total assets | $ 10,075.6 | | Total liabilities and shareholders' equity | $ 10,075.6 |
| Ratio analysis |
| Liquidity ratios: |
| Current ratio |
| Quick ratio |
| Activity ratios: |
| Inventory turnover |
| Receivables turnover |
| Days sales outstanding |
| Fixed asset turnover |
| Total asset turnover |
| Profitability ratios: |
| Gross profit margin |
| Operating profit margin |
| Net profit margin |
| Return on assets |
| Return on equity |
| Leverage ratios: |
| Debt / Net worth |
| Debt ratio |
| Coverage ratios: |
| Times-interest-earned |
| Analysis of Blue Bill Corporation's financial health |
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mod7_ratio_analysis_problem.xlsx
