Compose a financial analysis based on your evaluation of the ratios.
Comparison between 2020E ratios and industry averages -
(c) Asset utilization ratios;
(1) Are the 2020E ratios above, below, or equal to the industry
averages?
2) Is this a good thing or a bad thing for the company? and
(3) What can be done to improve the weak ratios or to maintain
the strong ones?
(d) Profitability ratios
(1) Are the 2020E ratios above, below, or equal to the industry
averages? (
2) Is this a good thing or a bad thing for the company? and
(3) What can be done to improve the weak ratios or to maintain
the strong ones?
(e) Market performance ratios.
(1) Are the 2020E ratios above, below, or equal to the industry
averages? (
2) Is this a good thing or a bad thing for the company? and
(3) What can be done to improve the weak ratios or to maintain
the strong ones?
Extracted text: Table 1 Balance Sheets 2020E 2019 2018- Assets Cash 85,632 B 7,282 B 57,600 Accounts receivable 878,000 632,160 351,200 Inventories 1,716,480 1,287,360 715,200 Total current assets 2,680,112 P 1,926,802 B 1,124,000 Gross fixed assets 1,197,160 1,202,950 491,000 Less: accumulated depreciation Net fixed assets 380,120 263,160 146,200 817,040 B 939,790 B 344,800 Total assets 3,497.152 P 2,866,592 P 1,468,800 Liabilities and equity Accounts payable 436,800 B 524,160 B 145,600 Accruals 408,000 489,600 136,000 Notes payable 300,000 636,808 200,000 481,600 323,432 Total current liabilities 1,144,800 B 1,650,568 B Long-term bonds Common stock (100,000 shares) Retained earnings Total common equity 400,000 723,432 1,721,176 460,000 460,000 231,176 32,592 203,768 1,952,352 D 492,592 e 663,768 Total liabilities and equity P 3,497,152 P 2,866,592 P 1,468,800 Table 2 Income Statements 2020E 2019 2018- Sales 7,035,600 6,034,000 B 3,432,000 Cost of goods sold 5,875,992 5,528,000 2,864,000 Gross income 1,159,608 506,000 568,000 Operating expenses except depreciation and amortization 550,000 519,988 358,672 EBITDA 609,608 B (13,988) P 209,328 Depreciation and amortization Earnings before interest and taxes (EBIT) 116,960 116,960 18,900 492,648 B (130,948) P 190,428 Interest expense 70,008 136,012 43,828 422,640 B Earnings before taxes (EBT) Taxes (40%) (266,960) P (106,784) (160,176) P 146,600 Page 169,056 58,640 Net Income 253,584 P 87,960 Total dividends paid Stock price 55,000 B 11,000 B 22,000 12.17 D 2.25 B 8.50 Shares outstanding 250,000 100,000 100,000 Tax rate 40.00% 40.00% 40.00%
Extracted text: 061 B E F 48 2020E 2019 Average 49 50 Current ratio Quick ratio 52 Cash ratio 53 Debt ratio 54 Equity ratio 55 Debt-to-equity (D/E) ratio 56 Equity multiplier Times interest earned (TIE) ratio 58 Dividend pagout ratio 59 Inventorg turnover 60 Days sales in inventorg Accounts receivable turnover 62 Days sales outstanding 63 Accounts pagable turnover 64 Days pagable outstanding 65 Operating eyele 66 Cash conversion cycle 67 Fized asset turnover 68 Total asset turnover 69 Gross margin 70 Operating margin Profit margin 72 Return on assets (ROA) 73 Return on equity (ROE) 74 Basic earning pover (BEP) 75 Basic earnings per share (EPS) 76 Price-to-earnings (PIE) ratio 77 Dividend gield 78 Market/book (MIB) 79 Book value per share (BYPS) 2.34 1.17 2.70 51 0.84 0.39 1.00 0.07 0.00 0.40 44.17% 55.83% 82.82% 60.00% 17.18% 40.00% 79.13% 481.94% 150.00% 260.28% 374.92% 200.00% 57 7.04 -0.96 6.20 0.22 -0.07 8.65 3.91 5.52 6.10 93.30 66.11 59.84 61 9.32 12.27 11.41 39.17 29.74 32.00 13.12 18.22 15.23 27.81 20.04 23.97 132.47 95.85 91.84 104.65 75.82 67.87 8.01 9.39 7.00 2.21 2.78 2.60 16.48% 8.39% 17.00% 7.00% -2.17% 7.30% 71 3.60% -2.65% 3.50% 7.97% -7.39% 9.10% 20.74% -27.70% 18.20% -6.04% 19.10% 1.45 -1.60 1.16 8.40 -1.40 14.20 0.05 0.61 1.56 0.46 2.40 7.81 4.93 n.a.