analysis
engsal20
ea_505_assignment.xlsxFinancial Trend Analysis
| Year 5 | Year 4 | Year 3 | Year 2 | Year 1 | Year 5-4 | Year 4-3 | Year 3-2 | Year 2-1 | Year 5 | Year 4 | Year 3 | Year 2 | Year 1 | ||||||
| BALANCE SHEET | Percent Change | Common Size Balance Sheet (Total Assets) | |||||||||||||||||
| Assets | In million | In million | In million | In million | In million | ||||||||||||||
| Cash in Bank on Hand | $ 1,084 | $ 1,044 | $ 806 | $ 511 | $ 306 | 3.83% | 29.53% | 57.73% | 66.99% | 28.11% | 28.07% | 27.09% | 21.89% | 14.32% | |||||
| Marketable Securities | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Accounts Receivable | 417 | 538 | 318 | 293 | 298 | -22.49% | 69.18% | 8.53% | -1.68% | 10.81% | 14.47% | 10.69% | 12.55% | 13.94% | |||||
| Inventory | 424 | 268 | 271 | 230 | 233 | 58.21% | -1.11% | 17.83% | -1.29% | 10.99% | 7.21% | 9.11% | 9.85% | 10.90% | |||||
| Notes Receivables (Current port) | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| other current assests | 78 | 65 | 35 | 40 | 47 | 20.00% | 85.71% | -12.50% | -14.89% | 2.02% | 1.75% | 1.18% | 1.71% | 2.20% | |||||
| Total Current Assets | $ 2,003 | $ 1,915 | $ 1,430 | $ 1,074 | $ 884 | 4.60% | 33.92% | 33.15% | 21.49% | 51.94% | 51.49% | 48.07% | 46.00% | 41.37% | |||||
| Land | 12 | 12 | 12 | 12 | 12 | 0.00% | 0.00% | -4.92% | 1.58% | 0.30% | 0.31% | 0.39% | 0.52% | 0.56% | |||||
| Notes Receivable (Long Term) | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Building | 134 | 102 | 91 | 60 | 57 | 31.27% | 12.13% | 50.41% | 5.85% | 3.46% | 2.73% | 3.05% | 2.58% | 2.67% | |||||
| Furniture & Fixtures | 30 | 27 | 27 | 23 | 25 | 9.67% | 0.00% | 14.96% | -7.80% | 0.76% | 0.72% | 0.90% | 1.00% | 1.19% | |||||
| Equipment | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Construction in progress | 60 | 160 | 95 | 95 | 37 | -62.52% | 68.21% | -0.31% | 158.25% | 1.55% | 4.30% | 3.19% | 4.08% | 1.73% | |||||
| Property, plant & equipment, net | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Accumulated Depreciation | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Total Fixed Assets | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Goodwill | 873 | 857 | 851 | 801 | 801 | 1.90% | 0.71% | 6.24% | 0.00% | 22.65% | 23.04% | 28.61% | 34.31% | 37.48% | |||||
| Intangible assets | 67 | 45 | 75 | 65 | 94 | 48.89% | -40.00% | 15.74% | -31.07% | 1.74% | 1.21% | 2.52% | 2.78% | 4.40% | |||||
| Deferred income taxes | 54 | 56 | 51 | 54 | 65 | -3.91% | 10.83% | -6.10% | -16.77% | 1.40% | 1.51% | 1.71% | 2.32% | 3.04% | |||||
| Property, plant & equipment, net | 806 | 826 | 556 | 329 | 279 | -2.42% | 48.56% | 69.00% | 17.92% | 20.90% | 22.21% | 18.69% | 14.09% | 13.06% | |||||
| Other long term Assets | 53 | 20 | 12 | 12 | 14 | 165.00% | 66.67% | 0.00% | -14.29% | 1.37% | 0.54% | 0.40% | 0.51% | 0.66% | |||||
| Total Assets | $ 3,856 | $ 3,719 | $ 2,975 | $ 2,335 | $ 2,137 | 3.69% | 25.03% | 27.41% | 9.26% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||
| Liabilities | |||||||||||||||||||
| Accounts Payable | $ 110 | $ 291 | $ 201 | $ 127 | $ 141 | -62.07% | 45.11% | 58.58% | -10.02% | 2.86% | 7.83% | 6.74% | 5.42% | 6.58% | |||||
| Accrued compensation & benefits | 42 | 82 | 71 | 41 | 31 | -48.10% | 15.28% | 71.60% | 31.47% | 1.10% | 2.19% | 2.38% | 1.76% | 1.47% | |||||
| Notes Payable-Current Portions | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Wages Payable | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Payroll Taxes Payable | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Interest Payable | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Income Tax Payable | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Deferred Revenue | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Other Current Liabilities | 58 | 91 | 26 | 12 | 11 | -37.02% | 247.15% | 119.17% | 11.30% | 1.49% | 2.45% | 0.88% | 0.51% | 0.50% | |||||
| Total Current Liabilities | $ 210 | $ 464 | $ 298 | $ 180 | $ 183 | -54.69% | 55.88% | 65.61% | -1.64% | 5.45% | 12.47% | 10.01% | 7.70% | 8.55% | |||||
| Long-term tax liabilities | 72 | 71 | 42 | 46 | 1.13% | 70.67% | -9.37% | ERROR:#DIV/0! | 1.86% | 1.91% | 1.40% | 1.97% | 0.00% | ||||||
| OtherLong-term tax liabilities | 32 | 25 | 102 | 6 | 48 | 26.48% | -75.24% | 1496.88% | -86.80% | 0.83% | 0.68% | 3.44% | 0.27% | 2.27% | |||||
| Other Liabilities | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Total Liabilities | $ 314 | $ 560 | $ 441 | $ 232 | $ 231 | -43.95% | 26.91% | 90.26% | 0.36% | 8.15% | 15.06% | 14.84% | 9.94% | 10.82% | |||||
| Stockholder's Equity | |||||||||||||||||||
| Capital Stock | 46 | 48 | 47 | 47 | 48 | -4.17% | 2.13% | 0.00% | -2.08% | 1.19% | 1.29% | 1.58% | 2.01% | 2.25% | |||||
| Paid-in-Capital | 2,686 | 2,495 | 2,248 | 2,041 | 1,920 | 7.66% | 10.99% | 10.14% | 6.30% | 69.65% | 67.08% | 75.57% | 87.41% | 89.85% | |||||
| Treasury Stock & Accumulated other comprehensive | (1,455) | (853) | (558) | (366) | (164) | 70.57% | 52.87% | 52.46% | 123.17% | -37.73% | -22.93% | -18.76% | -15.68% | -7.67% | |||||
| Retained Earnings | 2,264 | 1,469 | 795 | 379 | 101 | 54.12% | 84.78% | 109.76% | 275.25% | 58.71% | 39.50% | 26.72% | 16.23% | 4.73% | |||||
| Total Equity | $ 3,541 | $ 3,159 | $ 2,532 | $ 2,101 | $ 1,905 | 12.09% | 24.76% | 20.51% | 10.29% | 91.85% | 84.94% | 85.16% | 90.06% | 89.18% | |||||
| Total Liabilities & Equity | $ 3,855 | $ 3,719 | $ 2,973 | $ 2,333 | $ 2,136 | 3.65% | 25.08% | 27.45% | 9.21% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||
| INCOME STATEMENT | Percent Change | Common Size Income Statement (Sales) | |||||||||||||||||
| Gross Sales or Revenue | $ 3,289 | $ 3,258 | $ 2,292 | $ 1,792 | $ 1,569 | 0.95% | 42.15% | 27.90% | 14.21% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||
| Less: | |||||||||||||||||||
| Returns | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Allowances & Discounts | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Net Sales | 3,289 | 3,258 | 2,292 | 1,792 | 1,569 | 0.95% | 42.15% | 27.90% | 14.21% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||
| Cost of Goods Sold: | |||||||||||||||||||
| Finished Goods Inv-Beg | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Cost of Goods Mfg. | - 0 | - 0 | - 0 | - 0 | - 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||
| Goods Available for Sale | - 0 | - 0 | - 0 | - 0 | - 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||
| Finished Goods Inv-End | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
| Cost of Goods Sold | 1,624 | 1,704 | 1,269 | 1,025 | 901 | -4.69% | 34.28% | 23.80% | 13.76% | 49.38% | 52.30% | 55.37% | 57.20% | 57.43% | |||||
| Gross Profit | 1,665 | 1,554 | 1,023 | 767 | 668 | 7.14% | 51.91% | 33.38% | 14.82% | 50.62% | 47.70% | 44.63% | 42.80% | 42.57% | |||||
| Operating Expenses: | |||||||||||||||||||
| Sales & Market Expense | 196 | 191 | 179 | 160 | 158 | 2.62% | 6.70% | 11.88% | 1.27% | 5.96% | 5.86% | 7.81% | 8.93% | 10.07% | |||||
| Research & Development | 312 | 303 | 252 | 226 | 213 | 2.97% | 20.24% | 11.50% | 6.10% | 9.49% | 9.30% | 10.99% | 12.61% | 13.58% | |||||
| Other operating expenses | 38 | 37 | 26 | 35 | 41 | 2.70% | 42.31% | -25.71% | -14.63% | 1.16% | 1.14% | 1.13% | 1.95% | 2.61% | |||||
| Total Oper. Expense | 546 | 531 | 457 | 421 | 412 | 2.82% | 16.19% | 8.55% | 2.18% | 16.60% | 16.30% | 19.94% | 23.49% | 26.26% | |||||
| Operating Income | 1,119 | 1,023 | 566 | 346 | 256 | 9.38% | 80.74% | 63.58% | 35.16% | 34.02% | 31.40% | 24.69% | 19.31% | 16.32% | |||||
| Other Income & (Expenses) | 82 | 1 | (1) | - 0 | 8100.00% | ERROR:#DIV/0! | -100.00% | ERROR:#DIV/0! | 2.49% | 0.03% | 0.00% | -0.06% | 0.00% | ||||||
| Net Income Before Taxes | 1,201 | 1,024 | 566 | 345 | 256 | 17.29% | 80.92% | 64.06% | 34.77% | 36.52% | 31.43% | 24.69% | 19.25% | 16.32% | |||||
| Income Taxes | 205 | 225 | 108 | 66 | 53 | -8.89% | 108.33% | 63.64% | 24.53% | 6.23% | 6.91% | 4.71% | 3.68% | 3.38% | |||||
| Net Income | $ 996 | $ 799 | $ 458 | $ 279 | $ 203 | 24.66% | 74.45% | 64.16% | 37.44% | 30.28% | 24.52% | 19.98% | 15.57% | 12.94% | |||||
| Cost of Goods Manufactured | Percent Change | ||||||||||||||||||
| Direct Materials: | |||||||||||||||||||
| Raw Materials Inventory-Beg | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Purchases | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Materials Available | - 0 | - 0 | - 0 | - 0 | - 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
| Raw Materials Inventory-End | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Materials Used | - 0 | - 0 | - 0 | - 0 | - 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
| Direct Labor | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Mfg. Overhead: | |||||||||||||||||||
| Indirect Labor | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Mfg. Supplies | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Heat, Light & Power | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Depreciation (bldg.) | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Depreciation (equip.) | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Miscellaneous | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Total Mfg. Overhead | - 0 | - 0 | - 0 | - 0 | - 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
| Mfg. Cost Incurred | - 0 | - 0 | - 0 | - 0 | - 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
| WIP Inventory-Beg | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Cost to Account for | - 0 | - 0 | - 0 | - 0 | - 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
| WIP Inventory-End | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||||||||
| Cost of Goods Mfg. | - 0 | - 0 | - 0 | - 0 | - 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
| CASH FLOW STATEMENT | Percent Change | Common Size Cash Flow Statement (Net Increase in Cash) | |||||||||||||||||
| Cash Flow from Operations | |||||||||||||||||||
| Cash Inflows: | |||||||||||||||||||
| Collections from Custs. | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Int & Div's Collected | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Other Oper. Receipts | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Cash In from Operations | 1,450 | 1,188 | 801 | 514 | 409 | 0 | 0 | 1 | 0 | $ 36 | $ 5 | $ 3 | $ 3 | $ (4) | |||||
| Cash Outflows: | |||||||||||||||||||
| Payments to suppliers | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Payments to employees | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Payments of Interest | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Other Operating Pmts | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Cash Out for Operations | 354 | 195 | 29 | 14 | 124 | 81.54% | 6 | 1 | (1) | $ 9 | $ 1 | $ 0 | $ 0 | $ (1) | |||||
| Net Cash from Operations | 1,096 | 993 | 772 | 500 | 285 | 10.37% | 0 | 1 | 1 | $ 27 | $ 4 | $ 3 | $ 2 | $ (3) | |||||
| Cash Flows from Investing | |||||||||||||||||||
| Sale of Fixed Assets | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Purch. of Fixed Assets | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Net Cash from Investing | -251 | -455 | -357 | -123 | -303 | -44.84% | 27.45% | 1.9024390244 | -0.5940594059 | $ (6) | $ (2) | $ (1) | $ (1) | $ 3 | |||||
| Cash Flows from Financing | |||||||||||||||||||
| Issuance of Comm. Stock | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Proceeds from LT Debt | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Dividends Paid | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | ||||||||||
| Net Cash from Financing | -805 | -300 | -121 | -173 | -86 | 168.33% | 147.93% | -30.06% | 101.16% | $ (20) | $ (1) | $ (0) | $ (1) | $ 1 | |||||
| Net Increase in Cash | 40 | 238 | 294 | 204 | (104) | -83.19% | -19.05% | 44.12% | -296.15% | 1 | 1 | 1 | 1 | 1 | |||||
| Beginning Cash Balance | $ 1,044 | $ 806 | $ 511 | $ 306 | $ 0 | 29.53% | 57.73% | 66.99% | 798560.00% | $ 26 | $ 3 | $ 2 | $ 2 | $ (0) | |||||
| Ending Cash Balance | $ 1,084 | $ 1,044 | $ 805 | $ 510 | $ (104) | 3.83% | 29.69% | 57.84% | -590.57% | $ 27 | $ 4 | $ 3 | $ 3 | $ 1 | |||||
| RATIOS: IRT-CS: Click each ratio to see it defition |
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| Liquidity | |||||||||||||||||||
| Working capital IRT-CS: Working Capital measures the excess of current assets over current liabilities. It represents assets financed from long-term capital sources that do not require near-term repayment. WC = Current assets - Current liabilities | $ 1,793 | $ 1,451 | $ 1,132 | $ 894 | $ 701 | ||||||||||||||
| Current ratio IRT-CS: Current ratio involves the elements in the computations of working capital. Those are a company's currents assets divided by its current liabilities. This ratio is a measure of short-term debt-paying ability. CR = Current assets Current liabilities | 9.53 | 4.13 | 4.81 | 5.98 | 4.84 | ||||||||||||||
| Quick ratio (acid test) IRT-CS: Quick Ratio also called acid-test is a much more rigorous test of a company's ability to meet its short-term debts. Inventories and prepaid expenses are excluded from total current assets, leaving only the more liquid (or "quick") assets to be divided by current liabilities. QR = Cash + Marketable securities + Current receivables Current liabilities | 7.14 | 3.41 | 3.78 | 4.47 | 3.31 | ||||||||||||||
| Financial Management | |||||||||||||||||||
| Receivables turnover IRT-CS: Receivable turnover is a rough measure of how many times a company's accounts receivable have been turned into cash during the year. This ratio is computed by diving net sales by the average accounts receivable balance for the year. RT = Net sales Average accounts receivable balance | 9.51 | 12.09 | 9.15 | 7.74 | |||||||||||||||
| Days rcv'bles outstanding IRT-CS: Days receivables outstanding is the turnover figure divided into 365 to determine the average number of says taken to collect an account. DRO = 365 days Receivables turnover | 38.40 | 30.19 | 39.89 | 47.15 | |||||||||||||||
| Inventory turnover IRT-CS: Inventory turnover measures how many times a company's inventory has been sold and replaced during the year. It is computed by dividing the cost of goods sold by the average level of inventory on hand. IT = Cost of goods sold Average inventory balance | 4.69 | 6.32 | 5.07 | 4.43 | |||||||||||||||
| Days of inventory IRT-CS: days of inventories is the number of days been taken to sell the entire inventory one time. It can be computed by dividing 365 by the inventory turnover figure. DI = 365 days Inventory turnover | 77.76 | 57.73 | 72.05 | 82.44 | |||||||||||||||
| Operational measurements | |||||||||||||||||||
| Gross profit IRT-CS: Gross profit is a measure of profitability that evaluates the gross profit generated on sales. GP = Gross profit (Sales - COGS) Sales | 50.62% | 47.70% | 44.63% | 42.80% | 42.57% | ||||||||||||||
| Operating margin IRT-CS: Operating Margin is a measure of profitability that evaluates the operating income generated on sales. OM = Operating Income (Gross profit - Total oper exp) Sales | 34.02% | 31.40% | 24.69% | 19.31% | 16.32% | ||||||||||||||
| Profit margin IRT-CS: Profit margin reveals the profitability generated from sales expressed in terms of net income. PM = Net income Net sales | 30.28% | 24.52% | 19.98% | 15.57% | 12.94% | ||||||||||||||
| Return on assets (ROA) IRT-CS: Return on Total Assets is a measure of operating performance that shows how well assets have been employed. ROA = Net income Average total assets | 21.09% | 13.68% | 10.51% | 9.08% | |||||||||||||||
| Mark-up margin IRT-CS: Mark-up-margin measures the gross profitability generate by COGS. MM = Gross profit COGS | 102.52% | 91.20% | 80.61% | 74.83% | 74.14% | ||||||||||||||
| Return on equity IRT-CS: Return on Equity measures the income generated for the benefit of the common stockholder. The ROE divides the net income remaining for common stockholders by the common stockholders' equity for the year. ROE = Net income Common stockholders' equity | 28.13% | 25.29% | 18.09% | 13.28% | 10.66% | ||||||||||||||
| Asset turnover IRT-CS: Asset utilization, or turnover, indicates the efficiency with which corporate assets generate revenue AT = Gross sales Average asset balance | 0.86 | 0.68 | 0.67 | 0.70 | |||||||||||||||
| Common shares outstanding | |||||||||||||||||||
| Avg market price/share | |||||||||||||||||||
| Earnings per share IRT-CS: Earnings per share is computed by dividing net income available for stockholders by the average number of common shares outstanding during the year. "Net income available for common stockholders" is net income less dividends paid to the owners of the company's preferred stock. EPS = Net income - Preferred dividends Average number of common shares outstanding |
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| Price earnings ratio IRT-CS: Price-Earnings Ratio is the relationship between the market price of a share of stock and the stock's current earnings per share. A high price-earnings ratio means that investors are willing to pay a premium for the company's stock, because the company is expected to have higher than average future earnings growth. Conversely, if investors believe a company's future earnings growth prospects are limited, the company's price-earnings ratio would be relatively low. PE ratio = Market price per share Earnings per share |
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| Solvency measurements | |||||||||||||||||||
| Current debt to equity IRT-CS: Current debt to equity ratio is the balance between the portion of current liabilities and the protion of assets provided by the stockholders of a firm. Current D/E = Current liabilities Stochholders' equity | 0.06 | 0.15 | 0.12 | 0.09 | 0.10 | ||||||||||||||
| Debt to equity IRT-CS: Debt-to-equity ratio is the balance between the portion of assets provided by creditors and the protion of assets provided by the stockholders of a firm. This ratio indicates the amount of assets being provided by creditors for each dollar of assets being provided by the owners of a company. D/E = Total liabilities Stochholders' equity |
IRT-CS: Click each ratio to see it defition |
IRT-CS: Working Capital measures the excess of current assets over current liabilities. It represents assets financed from long-term capital sources that do not require near-term repayment. WC = Current assets - Current liabilities |
IRT-CS: Current ratio involves the elements in the computations of working capital. Those are a company's currents assets divided by its current liabilities. This ratio is a measure of short-term debt-paying ability. CR = Current assets Current liabilities |
IRT-CS: Quick Ratio also called acid-test is a much more rigorous test of a company's ability to meet its short-term debts. Inventories and prepaid expenses are excluded from total current assets, leaving only the more liquid (or "quick") assets to be divided by current liabilities. QR = Cash + Marketable securities + Current receivables Current liabilities |
IRT-CS: Receivable turnover is a rough measure of how many times a company's accounts receivable have been turned into cash during the year. This ratio is computed by diving net sales by the average accounts receivable balance for the year. RT = Net sales Average accounts receivable balance |
IRT-CS: Days receivables outstanding is the turnover figure divided into 365 to determine the average number of says taken to collect an account. DRO = 365 days Receivables turnover |
IRT-CS: Inventory turnover measures how many times a company's inventory has been sold and replaced during the year. It is computed by dividing the cost of goods sold by the average level of inventory on hand. IT = Cost of goods sold Average inventory balance |
IRT-CS: days of inventories is the number of days been taken to sell the entire inventory one time. It can be computed by dividing 365 by the inventory turnover figure. DI = 365 days Inventory turnover |
IRT-CS: Gross profit is a measure of profitability that evaluates the gross profit generated on sales. GP = Gross profit (Sales - COGS) Sales |
IRT-CS: Operating Margin is a measure of profitability that evaluates the operating income generated on sales. OM = Operating Income (Gross profit - Total oper exp) Sales |
IRT-CS: Profit margin reveals the profitability generated from sales expressed in terms of net income. PM = Net income Net sales |
IRT-CS: Return on Total Assets is a measure of operating performance that shows how well assets have been employed. ROA = Net income Average total assets |
IRT-CS: Mark-up-margin measures the gross profitability generate by COGS. MM = Gross profit COGS |
IRT-CS: Return on Equity measures the income generated for the benefit of the common stockholder. The ROE divides the net income remaining for common stockholders by the common stockholders' equity for the year. ROE = Net income Common stockholders' equity | 0.09 | 0.18 | 0.17 | 0.11 | 0.12 |
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