Financial Ratio Exercise

Complete this exercise after reviewing Module 3. You may refer back to that module if desired.
Place your responses in the grid below.

Dayton, Inc.
Balance Sheet as of 12/31 (Values in Millions, except EPS and Share Price)

2012 2011
Assets
Current Assets
Cash and Equivalents $ 7,229 $ 6,547 Liquidity
Receivables 21,163 19,549 Current Ratio
Inventories 8,068 7,904 Quick Ratio
Other Current Assets 1,831 1,681
Total Current Assets $ 38,291 $ 35,681 Activity
Inventory Turnove
Non-Current Assets Average Collectio
Property, Plant & Equipment, Gross $ 204,960 $ 187,519
Accum. Depreciation & Depletion 110,020 97,917 Debt
Property, Plant & Equipment, Net $ 94,940 $ 89,602 Debt-to-Asset Rat
Other Non-Current Assets 19,413 17,891 Times Interest Ea
Total Non-Current Assets $ 114,353 $ 107,493
Profitability
Total Assets $ 152,644 $ 143,174 Gross Profit Marg
Net Profit Margin
Liabilities & Shareholder's Equity Return on Assets
Current Liabilities Return on Equity
Accounts Payable $ 13,792 $ 22,862
Short Term Debt 4,093 3,703 Market Ratios
Other Current Liabilities 15,290 3,549 Outstanding share
Total Current Liabilities $ 33,175 $ 30,114 Share Price as of 1

Non-Current liabilites Earnings Per Sha

Long Term Debt $ 6,655 $ 7,099 Price/Earnings ra
Deferred Income Taxes 16,484 16,359

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Other Non-Current Liabilities 21,733 16,441
Total Non-Current Liabilities $ 44,872 $ 39,899
Total Liabilities $ 78,047 $ 70,013

Common Stock ($1.00 Par) $ 6,700 $ 6,800

Retained Earnings 67,897 66,361
Total Equity $ 74,597 $ 73,161

Total Liabilities & Stock Equity $ 152,644 $ 143,174

Dayton, Inc.
Annual Income Statement (Values in Millions)

2012 2011
Sales $ 178,909 $ 187,510
Cost of Sales 99,701 111,631
Gross Operating Profit $ 79,208 $ 75,879

Selling, General & Admin. Expense 12,356 12,900

Other Taxes 33,572 33,377
Depreciation & Amortization 12,103 7,944
Other Income, net 3,147 3,323
Earnings Before Interest and Taxes $ 18,030 $ 18,335

Interest Expense 398 293

Earnings Before Taxes $ 17,632 $ 18,042

Income Taxes 6,259 9,368

Net Income Available to Common $ 11,373 $ 8,674

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dule if desired.

2012 2011
Liquidity
Current Ratio 1.15 1.18
Quick Ratio 0.91 0.92

Inventory Turnover 12.36 14.12

Average Collection Period 43.18 30.05

Debt-to-Asset Ratio 51.0% 49.0%

Times Interest Earned 45.30 62.58

Profitability
Gross Profit Margin 44.0% 40.0%
Net Profit Margin 6.4% 4.6%
Return on Assets 7.5% 6.1%
Return on Equity 15.0% 12.0%

Market Ratios
Outstanding shares 6.7 billion 6.8 billion
Share Price as of 12/31: $ 90.00 $ 89.00

Earnings Per Share $ 1.70 $ 1.28

Price/Earnings ratio 52.94 69.53

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