URGENT HOMEWORK
Ricardo2222
ba_411_hw_4.xlsxLiquidity Ratios
| Liquidity Ratios |
Feng Wu: Liquidity ratios measure the ability of your business to meet short term obligations | Note: Enter figures as positive numbers. |
| Current Ratio Feng Wu: Measures your company's ability to pay its short-term obligations = Current Assets/Current Liabilities |
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| Current assets Tim Markward: From Balance Sheet |
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| / Current liabilities Tim Markward: From Balance Sheet |
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| 0.00 | ||
| Quick Ratio Feng Wu: Also known as Acid Test, measures your company's ability to pay off its short-term obligations from current assets, excluding inventories. =(current assets - inventory)/current liabilities |
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| (Current assets Tim Markward: From Balance Sheet |
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| - Inventory) Tim Markward: From Balance Sheet |
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| / Current liabilities Tim Markward: From Balance Sheet |
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| 0.00 | ||
| Operating Cash Flows Ratio | ||
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Nancy L. McClure: Measures the percentage of your current liabilities that are covered by your operating cash flows. | Cash Flows from Operations Tim Markward: From Cash Flow Statement |
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| Current Liabilities Tim Markward: From Balance Sheet |
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| ERROR:#DIV/0! | ||
| Working Capital Feng Wu: Examines your reserves. You do not want too much or too little working capital =Current Assets - Current Liabilities |
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| Current assets Tim Markward: From Balance Sheet |
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| Current liabilities Tim Markward: From Balance Sheet |
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| $0.00 | ||
| Inventory to Net Working Capital | ||
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Feng Wu: Indicates the percentage of working capital caused by excess inventory = (Inventory/(current assets-current liabilities) | Inventory Tim Markward: From Balance Sheet |
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| / (current assets Tim Markward: From Balance Sheet |
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| - current liabilities) Tim Markward: From Balance Sheet |
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| 0.00 | ||
Activity Ratios
| Analyzing Activity Ratios | Note: Enter figures as positive numbers. | |||||||
| Inventory Turnover Nancy L. McClure: Number of times the inventory was turned over during the period. Higher ratio indicates the inventory moves more quickly, reducing costs. |
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| COGS Tim Markward: From Income Statement |
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| /Average Inventory Tim Markward: Can be calculated from Balance Sheet |
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| ERROR:#DIV/0! | Operating Cycle Nancy L. McClure: Days inventory outstanding + Days sales outstanding. |
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| Days Inventory Held Nancy L. McClure: Number of days's worth of inventory that your company has on hand. | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||
| Accounts Receivable Turnover Nancy L. McClure: Measures your company’s efffectiveness in extending credit and collecting debts, as well as efficient use of assets. |
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Nancy L. McClure: Days inventory outstanding + Days sales outstanding. | Net Credit Sales Tim Markward: From Income Statement | Cash Conversion Cycle Nancy L. McClure: Length of time, in days, it takes a company to convert resource inputs into cash flows. Also, Days Inventory Held + Days Receivables Outstanding - Days Payables Outstanding |
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| / Average Accounts Receivable Tim Markward: Can be calculated from the Balance Sheet | ERROR:#DIV/0! | |||||||
| 0.00 | ||||||||
| Days A/R outstanding Nancy L. McClure: Your company's average receivable period. |
Nancy L. McClure: Length of time, in days, it takes a company to convert resource inputs into cash flows. Also, Days Inventory Held + Days Receivables Outstanding - Days Payables Outstanding | ERROR:#DIV/0! | ||||||
| Average collection period Nancy L. McClure: Days it takes your company to receive payments owed from customers. |
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| Accounts Receivable Tim Markward: From Balance Sheet |
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| Annual Sales Tim Markward: From Income Statement |
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| Accounts Payable Turnover Nancy L. McClure: Quantifies the rate at which your company pays off its suppliers. |
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| Purchases from Suppliers Tim Markward: From Income Statement |
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| / Average Accounts Payable Tim Markward: Can be calculated from the balance sheet |
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| 0.00 | ||||||||
| Days A/P Outstanding Nancy L. McClure: Your company’s average payable period. | ERROR:#DIV/0! | |||||||
Leverage Ratios
| Leverage Ratios | Note: Enter figures as positive numbers. | ||
| Debt to Asset Ratio | |||
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Nancy L. McClure: Proportion of Total Liabilities to Total Assets. | Total liabilities Tim Markward: From Balance Sheet |
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| / Total assets Tim Markward: From Balance Sheet |
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| 0.00 | |||
| Long Term Debt to Capital Structure | |||
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Nancy L. McClure: Proportion of Long-term Liabilities to Total Equity | Long term liabilities Tim Markward: From Balance Sheet |
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| / Equity Tim Markward: From Balance Sheet |
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| 0.00 | |||
| Leverage Ratio | |||
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Nancy L. McClure: Proportion of Total Assets to Total Equity | Total assets Tim Markward: From Balance Sheet |
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| / Equity Tim Markward: From Balance Sheet |
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| 0.00 | |||
| Times Interest Earned |
Nancy L. McClure: Measures a company's ability to meet its debt obligations. Indicates how many times a company can cover its interest charges on a pre-tax basis. | EBIT Nancy L. McClure: Earnings before interest and taxes. |
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| /Total Interest Payable on Debt Nancy L. McClure: You can find this value at the bottom of your Income Statement in your Capsim Annual Report. |
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| 0.00 | |||
| Operating Cash Flow |
Nancy L. McClure: Proportion of C.F. from Operations to Total Debt. | Cash Flow from Continuing Ops. Tim Markward: From Cash Flow Statement |
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| to Total Liabilites | /Total Liabilities Tim Markward: From Balance Sheet |
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| ERROR:#DIV/0! | |||
Profitability Ratios
| Profitability Ratios | Note: Enter figures as positive numbers. | |||||
| Gross Margin Feng Wu: Margin available to cover expenses beyond cost of goods sold =(Sales-COGS)/net sales |
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| (Sales | ||||||
| - cost of goods sold) Andrew Bondarev: COGS: Direct Labor and Direct Materials |
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| / Sales | ||||||
| 0.00 | ||||||
| Contribution Margin Ratio Nancy L. McClure: (Sales - Variable Costs) / Sales = Contribution Margin, amount available to cover fixed costs for the period. |
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| Sales | Period Costs | |||||
| Variable Costs | Depreciation | |||||
| 0.00 | SG&A, R&D | |||||
| Net Margin Nancy L. McClure: Nancy L. McClure: Income remaining after variable and fixed (period) costs are covered for the period. | Promotion | |||||
| Contribution Margin ($) Andrew Bondarev: Contribution Margin: Contribution Margin Ratio x Sales | Sales | |||||
| Period Costs | Admin | |||||
| $0.00 | Period Costs | $0.00 | ||||
| Return on Equity Nancy L. McClure: Nancy L. McClure: Reveals how much profit your company generated with the money invested by your shareholders. Net income returned as a percentage of shareholder's equity. |
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| Net income | ||||||
| / Equity | ||||||
| 0.00 | ||||||
| Return on Assets Nancy L. McClure: Nancy L. McClure: Measure of your company’s ability to efficiently use assets to generate earnings. |
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Andrew Bondarev: COGS: Direct Labor and Direct Materials |
Nancy L. McClure: (Sales - Variable Costs) / Sales = Contribution Margin, amount available to cover fixed costs for the period. | Net income | ||||
| / Total assets | ||||||
| 0.00 | ||||||
| Asset Turnover Nancy L. McClure: Nancy L. McClure: Amount of sales generated from every dollar of assets. |
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Nancy L. McClure: Nancy L. McClure: Income remaining after variable and fixed (period) costs are covered for the period. | Net sales | |||||
| / Total assets | ||||||
| 0.00 | ||||||
| Net Working Capital Turnover Nancy L. McClure: Nancy L. McClure: Measures how effectively your company is using working capital to generate sales. |
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Andrew Bondarev: Contribution Margin: Contribution Margin Ratio x Sales |
Nancy L. McClure: Nancy L. McClure: Reveals how much profit your company generated with the money invested by your shareholders. Net income returned as a percentage of shareholder's equity. | Net sales | ||||
| Current assets | ||||||
| Current liabilities | ||||||
| ERROR:#DIV/0! | ||||||
DuPont
| Du Pont Analysis | Note: Enter figures as positive numbers. | ||||||||||
| Net income | |||||||||||
| divided by | Return On Sales (Profit Margin) Nancy L. McClure: Nancy L. McClure: Used to evaluate a company’s operational efficiency. Proportion of income generated for every dollar of sales. |
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| ERROR:#DIV/0! | |||||||||||
| Sales | |||||||||||
| multiplied by | Return on Total Assets (ROA) Nancy L. McClure: Nancy L. McClure: Measures how efficiently a company is using its assets to generate earnings. |
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| ERROR:#DIV/0! | |||||||||||
| Sales | |||||||||||
| divided by | Investment (Asset) Turnover Nancy L. McClure: Nancy L. McClure: Amount of sales generated for every dollar of assets employed. |
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| ERROR:#DIV/0! | |||||||||||
| Average assets Andrew Bondarev: As this is calculated over an annual basis, one averages the assets at the beginning and end of the year. |
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| multiplied by | Return on Common Equity (ROE) Nancy L. McClure: Nancy L. McClure: Reveals how much profit a company has generated with the money shareholders' invested. |
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| ERROR:#DIV/0! | |||||||||||
| Average assets Andrew Bondarev: As this is calculated over an annual basis, one averages the assets at the beginning and end of the year. |
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Nancy L. McClure: Nancy L. McClure: Used to evaluate a company’s operational efficiency. Proportion of income generated for every dollar of sales. | divided by | Financial structure leverage Nancy L. McClure: Nancy L. McClure: Reveals the relative amount of debt used to finance a company's assets. Higher financial structure leverage values indicate higher proportions of debt being used to finance assets. |
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| ERROR:#DIV/0! | |||||||||||
| Average shareholders' equity Andrew Bondarev: Take the average shareholders' equity at the beginning and end of the year. |
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Nancy L. McClure: Nancy L. McClure: Reveals how much profit a company has generated with the money shareholders' invested. |
Nancy L. McClure: Nancy L. McClure: Reveals the relative amount of debt used to finance a company's assets. Higher financial structure leverage values indicate higher proportions of debt being used to finance assets. |
Nancy L. McClure: Nancy L. McClure: Measures how efficiently a company is using its assets to generate earnings. |
Andrew Bondarev: As this is calculated over an annual basis, one averages the assets at the beginning and end of the year. |
SWOT-Low End
| SWOT Analysis | ||||||||||||||
| Strengths/Weaknesses for | ||||||||||||||
| LOW END SEGMENT | ||||||||||||||
| STEP 2 | STEP 3 | STEP 4 | (Ranking: Customer Experience) Nancy L. McClure: Nancy L. McClure: Score of "1" indicates company that is closest to meeting customer requirements. Score of "4" indicates company that is farthest from meeting customer requirments. | STEP 5 | (Ranking: Competitive Standing) | |||||||||
| Crtical Success Factors | Weighting | Your Company | Company A | Company B | Company C | Company D | Your Company | Company A | Company B | Company C | Company D | |||
| PRICE | 53% | 0 | 0 | 0 | 0 | 0 | ||||||||
| AGE | 24% | X | = | 0 | 0 | 0 | 0 | 0 | ||||||
| IDEAL POSITION | 16% | 0 | 0 | 0 | 0 | 0 | ||||||||
| RELIABILITY | 7% | 0 | 0 | 0 | 0 | 0 | ||||||||
| 0 | 0 | 0 | 0 | 0 | ||||||||||
| (Scale of 4; Lowest score is industry leader) |
SWOT-Traditional
| SWOT Analysis | ||||||||||||||
| Strengths/Weaknesses for | ||||||||||||||
| TRADITIONAL SEGMENT | ||||||||||||||
| STEP 2 | STEP 3 | STEP 4 | (Ranking: Customer Experience) Nancy L. McClure: Nancy L. McClure: Score of "1" indicates company that is closest to meeting customer requirements. Score of "4" indicates company that is farthest from meeting customer requirments. | STEP 5 | (Ranking: Competitive Standing) | |||||||||
| Crtical Success Factors | Weighting | Your Company | Company A | Company B | Company C | Company D | Your Company | Company A | Company B | Company C | Company D | |||
| PRICE | 47% | 0 | 0 | 0 | 0 | 0 | ||||||||
| AGE | 23% | X | = | 0 | 0 | 0 | 0 | 0 | ||||||
| IDEAL POSITION | 21% | 0 | 0 | 0 | 0 | 0 | ||||||||
| RELIABILITY | 9% | 0 | 0 | 0 | 0 | 0 | ||||||||
| 0 | 0 | 0 | 0 | 0 | ||||||||||
| (Scale of 4; Lowest score is industry leader) |
SWOT-High End
| SWOT Analysis | ||||||||||||||
| Strengths/Weaknesses for | ||||||||||||||
| HIGH END SEGMENT | ||||||||||||||
| STEP 2 | STEP 3 | STEP 4 | (Ranking: Customer Experience) Nancy L. McClure: Nancy L. McClure: Score of "1" indicates company that is closest to meeting customer requirements. Score of "4" indicates company that is farthest from meeting customer requirments. | STEP 5 | (Ranking: Competitive Standing) | |||||||||
| Crtical Success Factors | Weighting | Your Company | Company A | Company B | Company C | Company D | Your Company | Company A | Company B | Company C | Company D | |||
| PRICE | 43% | 0 | 0 | 0 | 0 | 0 | ||||||||
| AGE | 29% | X | = | 0 | 0 | 0 | 0 | 0 | ||||||
| IDEAL POSITION | 19% | 0 | 0 | 0 | 0 | 0 | ||||||||
| RELIABILITY | 9% | 0 | 0 | 0 | 0 | 0 | ||||||||
| 0 | 0 | 0 | 0 | 0 | ||||||||||
| (Scale of 4; Lowest score is industry leader) |
SWOT-Performance
| SWOT Analysis | ||||||||||||||
| Strengths/Weaknesses for | ||||||||||||||
| PERFORMANCE SEGMENT | ||||||||||||||
| STEP 2 | STEP 3 | STEP 4 | (Ranking: Customer Experience) Nancy L. McClure: Nancy L. McClure: Score of "1" indicates company that is closest to meeting customer requirements. Score of "4" indicates company that is farthest from meeting customer requirments. | STEP 5 | (Ranking: Competitive Standing) | |||||||||
| Crtical Success Factors | Weighting | Your Company | Company A | Company B | Company C | Company D | Your Company | Company A | Company B | Company C | Company D | |||
| PRICE | 43% | 0 | 0 | 0 | 0 | 0 | ||||||||
| AGE | 29% | X | = | 0 | 0 | 0 | 0 | 0 | ||||||
| IDEAL POSITION | 19% | 0 | 0 | 0 | 0 | 0 | ||||||||
| RELIABILITY | 9% | 0 | 0 | 0 | 0 | 0 | ||||||||
| 0 | 0 | 0 | 0 | 0 | ||||||||||
| (Scale of 4; Lowest score is industry leader) |
SWOT-Size
| SWOT Analysis | ||||||||||||||
| Strengths/Weaknesses for | ||||||||||||||
| SIZE SEGMENT | ||||||||||||||
| STEP 2 | STEP 3 | STEP 4 | (Ranking: Customer Experience) Nancy L. McClure: Nancy L. McClure: Score of "1" indicates company that is closest to meeting customer requirements. Score of "4" indicates company that is farthest from meeting customer requirments. | STEP 5 | (Ranking: Competitive Standing) | |||||||||
| Crtical Success Factors | Weighting | Your Company | Company A | Company B | Company C | Company D | Your Company | Company A | Company B | Company C | Company D | |||
| PRICE | 43% | 0 | 0 | 0 | 0 | 0 | ||||||||
| AGE | 29% | X | = | 0 | 0 | 0 | 0 | 0 | ||||||
| IDEAL POSITION | 19% | 0 | 0 | 0 | 0 | 0 | ||||||||
| RELIABILITY | 9% | 0 | 0 | 0 | 0 | 0 | ||||||||
| 0 | 0 | 0 | 0 | 0 | ||||||||||
| (Scale of 4; Lowest score is industry leader) |
