Haver Industries is a leading consumer products company. The
company’s adapted comparative balance sheets and income statements
(in $ millions) follow.
Haver Industries Comparative Income Statements For the Years Ended December 31 |
||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||
Net sales revenue | $68,222 | $56,741 | $51,407 | $43,377 | $40,238 | |||||
Cost of goods sold | 33,125 | 27,872 | 25,076 | 22,141 | 20,989 | |||||
Gross profit | 35,097 | 28,869 | 26,331 | 21,236 | 19,249 | |||||
Research & development expenses | 2,075 | 1,940 | 1,802 | 1,665 | - | |||||
Selling, general, & administrative expenses | 19,773 | 16,460 | 14,702 | 11,718 | 12,052 | |||||
Nonoperating income (expense) | 283 | 346 | 152 | 238 | (211) | |||||
Interest expense | 1,119 | 834 | 629 | 561 | 603 | |||||
Income before taxes | 12,413 | 9,981 | 9,350 | 7,530 | 6,383 | |||||
Income taxes | 3,729 | 3,058 | 2,869 | 2,344 | 2,031 | |||||
Net income | $8,684 | $6,923 | $6,481 | $5,186 | $4,352 | |||||
Income before taxes | $2.79 | $2.70 | $2.34 | $1.80 | $1.46 | |||||
Income before taxes | $1.15 | $1.03 | $0.93 | $0.82 | $0.76 |
Haver Industries Comparative Balance Sheets As of December 31 |
||||||||||
Assets | 2016 | 2015 | 2014 | 2013 | 2012 | |||||
Cash | $6,693 | $6,389 | $4,232 | $5,912 | $3,427 | |||||
Marketable securities | 1,133 | 1,744 | 1,660 | 300 | 196 | |||||
Receivables | 5,725 | 4,185 | 4,062 | 3,038 | 3,090 | |||||
Inventories | 6,291 | 5,006 | 4,400 | 3,640 | 3,456 | |||||
Other current assets | 4,487 | 3,005 | 2,761 | 2,330 | 1,997 | |||||
Total current assets | 24,329 | 20,329 | 17,115 | 15,220 | 12,166 | |||||
Property, plant, & equipment, net | 18,770 | 14,332 | 14,108 | 13,104 | 13,349 | |||||
Inventories | 89,027 | 24,163 | 23,900 | 13,507 | 13,430 | |||||
Deposits & other assets | 3,569 | 2,703 | 1,925 | 1,875 | 1,831 | |||||
Total Assets | $135,695 | $61,527 | $57,048 | $43,706 | $40,776 | |||||
Liabilities | ||||||||||
Notes payable | $0 | $0 | $6,769 | $1,079 | $3,113 | |||||
Accounts payable | 4,910 | 3,802 | 3,617 | 2,795 | 2,205 | |||||
Current long-term debt | 2,128 | 11,441 | 1,518 | 1,093 | n/a | |||||
Accrued expense | 4,757 | 2,957 | 2,925 | 2,606 | 2,429 | |||||
Income taxes | 3,360 | 2,265 | 2,554 | 1,879 | 1,438 | |||||
Other current liabilities | 4,830 | 4,574 | 4,764 | 2,906 | 3,519 | |||||
Total current liabilities | 19,985 | 25,039 | 22,147 | 12,358 | 12,704 | |||||
Deferred charges | 12,354 | 1,896 | 2,261 | 1,396 | 1,077 | |||||
Long-term debt | 35,344 | 12,614 | 12,302 | 11,475 | 11,201 | |||||
Non-current capital leases | 632 | 273 | 252 | |||||||
Other long-term liabilities | 4,472 | 3,230 | 2,808 | 2,291 | 2,088 | |||||
Total liabilities | 72,787 | 43,052 | 39,770 | 27,520 | 27,070 | |||||
Stockholders’ Equity | ||||||||||
Common stock | 3,976 | 2,977 | 2,544 | 1,297 | 1,301 | |||||
Capital surplus | 57,856 | 3,030 | 2,425 | 2,931 | 2,490 | |||||
Retained earnings | 35,666 | 31,004 | 13,611 | 13,692 | 11,980 | |||||
Treasury stock | (34,235) | (17,194) | 0 | 0 | 0 | |||||
Other | (355) | (1,342) | (1,302) | (1,734) | (2,065) | |||||
Total stockholders’ equity | 62,908 | 18,475 | 17,278 | 16,186 | 13,706 | |||||
Total Liabilities and Stockholders’ Equity | $135,695 | $61,527 | $57,048 | $43,706 |
$40,776 |
In his letters to shareholders in 2012, Haver’s CEO stated that the company’s goal for the next five years was to achieve 4% to 6% sales growth each year and at least 10% growth in earnings per share. Did the company meet its targets? How do you know?
Managing a broad collection of brands is challenging. In its 2012 annual report, Haver Industries stated that acquisitions and divestitures “are part of the Company’s strategic focus on developing brands that offer the greatest potential for growth.” The report went on, “This requires some diffi cult decisions, including a restructuring program to reduce overhead and streamline manufacturing processes.” In other words, the company strives to use its assets to earn the greatest possible return. How well has the company managed its assets over the five-year period shown here?
2016 |
2015 |
2014 |
||
Return on assets |
8.8% |
11.7% |
12.9% |
12.3% |
Would you recommend Haver Industries shares to a friend who is interested in investing for growth potential? Why or why not?
Would you recommend Havre Industries shares to a friend who is interested in investing for growth potential? Why or why not?
Solution
Current year sales –previous year sales previous year sales
2016 |
2015 |
2014 |
2013 |
|
Sale |
68222 |
56741 |
51407 |
43377 |
%sales growth% |
68222-56-56741 |
56741-51407 |
51407-43377 |
43377-40238 |
56741 |
51407 |
43377 |
40238 |
|
11481 |
5334 |
8030 |
3139 |
|
56741 |
51407 |
43377 |
40238 |
|
%Sale growth |
20.2% |
10.4% |
18.5% |
7.8% |
Current year EPS- previous year EPS previous EPS
Earn per shares |
2.79 |
2.7 |
2.34. |
1.8 |
EPS growth % |
2.79-2.7 |
2.7-2.34 |
2.34-1.8 |
1.8-1.46 |
2.7 |
0.36 |
0.54 |
0.34 |
|
0.09 |
0.36 |
0.54 |
0.34 |
|
2.7 |
2.34 |
1.8 |
1.46 |
|
% EPS growth |
3.3% |
15.4% |
30.0% |
23.3% |
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