I am struggling with understanding what to use to complete this assignment. From textbook Strategic Management by David and David 16th edition, Complete Experiential Exercise 4C, Step 1, on textbook page 124. Once you have found Table 4-4, complete the first 18 ratios and then 2 of your choice from the remaining growth ratios (this will equal the 20 required in the Assurance of Learning Exercise). It is required that you show your work. Use the financial documents on pages 29–31.
The ratios I have thought to use are below but am struggling with determining what should be separated out from the financial documents as long term debt, fixed assets versus total debt and all assets. Trying to determine if these ratios are even correct for the question being asked in the exercise.
| Current ratio = | Current assets |
| Current liabilities | |
| Quick Ratio = | Current assets - inventory |
| Current liabilities | |
| Debt to total asset ratio = | Total Debt |
| Total assets | |
| Debt to equity ratio = | Total debt |
| Total stockholder's equity | |
| Long term debt to equity ratio = | Long term debt |
| Total stockholder's equity | |
| Times interest eared ratio = | EBIT |
| Total interest charges | |
| Inventory turnover = | Sales |
| Inventory | |
| Fixed Asset turnover = | Sales |
| Fixed assets | |
| Total Asset turnover = | Sales |
| Total Assets | |
| Accounts receivable turnover = | Sales |
| Accounts receivable | |
| Average collection period = | Accounts receivables |
| Sales / 365 | |
| Gross profit margin = | Gross Profit |
| Sales | |
| Operating profit margin = | EBIT |
| Sales | |
| Net Profit margin = | Net Income |
| Sales | |
| Return on total assets = | Net Income |
| Total assets | |
| Return on stockholder's equity = | Net Income |
| Total shareholder's equity | |
| Earnings per share = | Net Income |
| Number of common stock outstanding | |
| Price earning ratio = | Market price per share |
| Earnings per share | |
| Sales growth = | Current year - Last year |
| Last year | |
| Net income growth = | Current year - Last year |
|
Period Ending: |
Trend | 12/31/2017 | 12/31/2016 | 12/31/2015 | 12/31/2014 | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Assets | |||||||||||||||||||||||||||||||
| Cash and Cash Equivalents |
|
$380,179 | $296,967 | $346,529 | $374,854 | ||||||||||||||||||||||||||
| Short-Term Investments |
|
$0 | $0 | $0 | $97,131 | ||||||||||||||||||||||||||
| Net Receivables |
|
$588,262 | $581,381 | $599,073 | $697,455 | ||||||||||||||||||||||||||
| Inventory |
|
$752,836 | $745,678 | $750,970 | $801,036 | ||||||||||||||||||||||||||
| Other Current Assets |
|
$280,633 | $192,752 | $152,026 | $276,571 | ||||||||||||||||||||||||||
| Total Current Assets |
|
$2,001,910 | $1,816,778 | $1,848,598 | $2,247,047 | ||||||||||||||||||||||||||
| Long-Term Assets | |||||||||||||||||||||||||||||||
| Long-Term Investments |
|
$0 | $0 | $0 | $0 | ||||||||||||||||||||||||||
| Fixed Assets |
|
$2,106,697 | $2,177,248 | $2,240,460 | $2,151,901 | ||||||||||||||||||||||||||
| Goodwill |
|
$821,061 | $812,344 | $684,252 | $792,955 | ||||||||||||||||||||||||||
| Intangible Assets |
|
$369,156 | $492,737 | $379,305 | $294,841 | ||||||||||||||||||||||||||
| Other Assets |
|
$251,879 | $168,365 | $155,366 | $136,126 | ||||||||||||||||||||||||||
| Deferred Asset Charges |
|
$3,023 | $56,861 | $36,390 | $0 | ||||||||||||||||||||||||||
| Total Assets |
|
$5,553,726 | $5,524,333 | $5,344,371 | $5,622,870 | ||||||||||||||||||||||||||
| Current Liabilities | |||||||||||||||||||||||||||||||
| Accounts Payable |
|
$1,217,086 | $1,276,729 | $1,354,476 | $1,300,146 | ||||||||||||||||||||||||||
| Short-Term Debt / Current Portion of Long-Term Debt |
|
$859,457 | $632,714 | $863,436 | $635,501 | ||||||||||||||||||||||||||
| Other Current Liabilities |
|
$0 | $0 | $0 | $0 | ||||||||||||||||||||||||||
| Total Current Liabilities |
|
$2,076,543 | $1,909,443 | $2,217,912 | $1,935,647 | ||||||||||||||||||||||||||
| Long-Term Debt |
|
$2,061,023 | $2,347,455 | $1,557,091 | $1,542,317 | ||||||||||||||||||||||||||
| Other Liabilities |
|
$438,939 | $400,161 | $468,718 | $526,003 | ||||||||||||||||||||||||||
| Deferred Liability Charges |
|
$45,656 | $39,587 | $53,188 | $99,373 | ||||||||||||||||||||||||||
| Misc. Stocks |
|
$0 | $0 | $0 | $0 | ||||||||||||||||||||||||||
| Minority Interest |
|
$16,227 | $41,831 | $49,465 | $64,468 | ||||||||||||||||||||||||||
| Total Liabilities |
|
$4,638,388 | $4,738,477 | $4,346,374 | $4,167,808 | ||||||||||||||||||||||||||
| Stock Holders Equity | |||||||||||||||||||||||||||||||
| Common Stocks |
|
$359,901 | $359,901 | $359,901 | $359,901 | ||||||||||||||||||||||||||
| Capital Surplus |
|
$924,978 | $869,857 | $783,877 | $754,186 | ||||||||||||||||||||||||||
| Retained Earnings |
|
$6,371,082 | $6,115,961 | $5,897,603 | $5,860,784 | ||||||||||||||||||||||||||
| Treasury Stock |
|
($6,426,877) | ($6,183,975) | ($5,672,359) | ($5,161,236) | ||||||||||||||||||||||||||
| Other Equity |
|
($313,746) | ($375,888) | ($371,025) | ($358,573) | ||||||||||||||||||||||||||
| Total Equity |
|
$915,338 | $785,856 | $997,997 | $1,455,062 | ||||||||||||||||||||||||||
| Total Liabilities & Equity |
|
$5,553,726 | $5,524,333 | $5,344,371 | $5,622,870 | ||||||||||||||||||||||||||
Long Term Debt : Whose Maturity is after 1 Year from the end of Balance sheet
Ex: Bank Loans, Debentures Issues etc.
Total debt:
Total Value of Liabilitiy & Eauity in Balance sheet - Share Holders Equity
Fixed Assets:
Whose Utilization is more than One Accounting Period
Ex: Plant & Equipment, Land, Buildimg, Furniture & FIxtures etc.
Total Assets = Assets Side total in Balance sheet
SHare Holders Equity:
Common stock & Reserves belongs to Equity Holders.
Current Assets:
Assets that can be realized in a year from the end of Balance shgeet date
Ex: Inventory, Cash & Bank Balance, Account Receivabales, Short term Investments etc.
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