Professional Documents
Culture Documents
Balance Sheet
Income Statement
2011 2012
Sales 320 384
- Cost of Goods Sold -215 -250
Gross Profit 105 134
- Selling and Admin Expenses -65 -82
Earnings before Int & Taxes 40 52
- Interest (10%) 4 5.2
Earnings before Taxes 36 46.8
- Taxes (25%) 9 11.7
Net Income 27 35.1
Investing Activities
Increase in Marketable Securities -20
Increase in Fixed Assets -10
Total Sources/(Uses) of Cash -30
Financing Activities
Increase in Note Payable 5
Increase in long-term debt 5
Dividend -21.06
Total Sources/(Uses) of Cash -11.06
Balance Sheet
Common Size (%) %
Assets 2011 2012 2011 2012 2012
Cash 60 50 24.0 17.9 -16.7
Marketable Securities 40 60 16.0 21.4 50.0
Account Receivables 50 40 20.0 14.3 -20.0
Inventory 40 60 16.0 21.4 50.0
Fixed Assets 60 70 24.0 25.0 16.7
Total 250 280 100.0 100.0 12.0
LIQUIDITY
Current Ratio:
Current Assets/Current Liabilities
ASSET MANAGEMENT
Inventory Turnover:
Cost of Goods Sold/ Inventory
Debt Ratio:
Total Debt/Total Assets
Debt-to-Equity Ratio:
Total Debt/Total Equity
PROFITABILITY
Return on Asset:
Net Income/Total Assets
Return on Equity:
Net Income/Owners' Equity
MARKET VALUE
Price-Earning Ratio:
Market Price Per Share/Earnings Per Share
Net Operating Working Capital = Operating Current Assets - Operating Current Liabilities
= (Cash + A/Rec + Inv) - (A/Payable + Accruals)
2011: = (60 + 50 + 40) - (30 + 20) = 100
2012: = (50 + 40 + 60) - (41.96 + 14) = 94.04
ROIC = NOPAT/TOC
2011: = 30/160 = 18.75%
2012: = 39/164.04 = 23.77%