Welcome to Premium Paper Help

premiumpaperhelp.com logo

Our Services

Get 15% Discount on your First Order

Description I have a fin h.w first you should look for an income statement & balance sheet for 2 years ( 2021 n 2022 Or 2022 n 2023 ONLY) so only 2

Description

I have a fin h.w

first you should look for an income statement & balance sheet for 2 years ( 2021 n 2022 Or 2022 n 2023 ONLY)

so only 2 years from the last 3 years

second .. the company must be like Apple , Samsung , b.m.w (big and famous company)

I need an intro (only 3 lines) so short intro about the company

and the conclusion just write if u recommend to buy shares from this company or no (so very short conclusion as well)

DSO and debit ratio are (the lower the better)

all other formulas are ( the higher the better)

and for P\E may u should search about earning per share and price per share in the internet

here is a comparing for two companies”example” ( but our h.w is comparing for 2 years for the same company )

I need a pdf and an excel files 

3-1
ABC
XYZ
CA
60
110
CL
20
90
60/20= 3
110/90=1.2
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3-2

a/wps/wcm/connect/e
nglish/investor/resour
ces/5/4/541cea343c1e-4e81-a52c7e9f4db95f51/STC_An
uual_Report_2019en.pdf
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3-3
file:///C:/Users/AU030/Downloads/CG_B
oDReportEN_2020041
3_Final.pdf
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3-4
CHAPTER 3
Analysis of Financial Statements
Ratio analysis
Du Pont system
Effects of improving ratios
Limitations of ratio analysis
Qualitative factors
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3-5
Balance Sheet: Assets
Cash
AR
Inventories
Total CA
Gross FA
Less: Deprec.
Net FA
Total assets
Copyright © 2002 by Harcourt, Inc.
2002E
85,632
878,000
1,716,480
2,680,112
1,197,160
380,120
817,040
3,497,152
2001
7,282
632,160
1,287,360
1,926,802
1,202,950
263,160
939,790
2,866,592
All rights reserved.
3-6
Liabilities and Equity
2002E
Accounts payable
436,800
Notes payable
300,000
Accruals
408,000
Total CL
1,144,800
Long-term debt
400,000
Common stock
1,721,176
Retained earnings
231,176
Total equity
1,952,352
Total L & E
3,497,152
Copyright © 2002 by Harcourt, Inc.
2001
524,160
636,808
489,600
1,650,568
723,432
460,000
32,592
492,592
2,866,592
All rights reserved.
3-7
Income Statement
Sales
COGS
Other expenses
EBITDA
Depreciation
EBIT
Interest exp.
EBT
Taxes (40%)
Net income
Copyright © 2002 by Harcourt, Inc.
2002E
2001
7,035,600 6,034,000
5,875,992 5,528,000
550,000
519,988
609,608
(13,988)
116,960
116,960
492,648 (130,948)
70,008
136,012
422,640 (266,960)
169,056 (106,784)
253,584 (160,176)
All rights reserved.
3-8
Other Data
2002E
2001
Shares out.
250,000
100,000
EPS
$1.014
($1.602)
DPS
$0.220
$0.110
Stock price
$12.17
$2.25
Lease pmts
$40,000
$40,000
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3-9
Why are ratios useful?
Standardize numbers; facilitate
comparisons
Used to highlight weaknesses and
strengths
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 10
What are the five major categories of
ratios, and what questions do they
answer?
Liquidity: Can we make required
payments?
Asset management: Right amount
of assets vs. sales?
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 11
Debt management: Right mix of
debt and equity?
Profitability: Do sales prices exceed
unit costs, and are sales high
enough as reflected in PM, ROE, and
ROA?
Market value: Do investors like what
they see as reflected in P/E and M/B
ratios?
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 12
STC
Mobaily
Which is better
CR
1.394
0.589
STC
QR
1.36
0.583
STC
INT TO
58.4
191.53
Mobaily
DSO
99.5
101.22
STC
FA TO
1.23
0.65
STC
TA TO
0.48
0.36
STC
D/TA
0.46
0.62
STC
TIE
20.4
2.4
STC
PM
18.97%
5.57%
STC
BEP
0.1043
0.0355
STC
ROA
0.091
0.0203
STC
ROE
0.171
0.054
STC
P/E
5.69
26.89
MOBILY
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 13
STC
Mobaily
Which is better
CR
1.394
0.589
STC
QR
1.36
0.583
STC
INT TO
58.44
191.5
Mobily
DSO
99.58
101.22
stc
FA TO
1.23
0.658
stc
TA TO
1.2855
0.365
stc
D/A
0.46
0.623
STC
TIE
20.4
2.435
STC
PM
0.189
0.055
STC
BEP
0.1043
0.0355
STC
ROA
0.091
0.0203
STC
ROE
0.171
0.054
STC
P/E
5.69
26.77
MOBILY
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 14
Calculate D’Leon’s forecasted
current and quick ratios for 2002.
$2,680
CA
CR02 = CL = $1,145 = 2.34x.
CA – Inv.
QR02 =
CL
$2,680 – $1,716
=
=
0.84x.
$1,145
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 15
Comments on CR and QR
2002
2001
2000
Ind.
CR
2.34x
1.2x
2.3x
2.7x
QR
0.84x
0.4x
0.8x
1.0x
 Expected to improve but still below
the industry average.
 Liquidity position is weak.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 16
A company has current liabilities of $800
million, and its current ratio is 2.5. What is
its level of current assets? If this firm’s quick
ratio is 2, how much
inventory does it have?
1. ($2,000 million)
2. ($400 million)
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 17
What is the inventory turnover ratio vs.
the industry average?
Sales
Inv. turnover = Inventories
$7,036
=
= 4.10x.
$1,716
2002
2001
2000
Ind.
Inv. T. 4.1x
4.7x
4.8x
6.1x
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 18
Comments on Inventory Turnover
Inventory turnover is below
industry average.
D’Leon might have old inventory,
or its control might be poor.
No improvement is currently
forecasted.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 19
Days sales outstanding (DSO),DSO is
the average number of days after
making a sale before receiving cash.
Receivables
DSO = Average sales per day
Receivables
$878
= Sales/365 = $7,036/365 = 45.5
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 20
Appraisal of DSO
DSO
2002
45.6
2001
38.2
2000
37.4
Ind.
32.0
 D’Leon collects too slowly, and is getting
worse.
 D’Leon has a poor credit policy.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 21
A firm has annual sales of $200 million, $40
million of inventory, and $60 million of
accounts receivable. What is its inventory
turnover ratio? What is its DSO based
on a 365-day year?
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 22
A firm has annual sales of $200 million, $40
million of inventory, and $60 million of
accounts receivable. What is its inventory
turnover ratio? What is its DSO based
on a 365-day year?
(5)
(109.5 days)
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 23

a/wps/wcm/connect/e
nglish/investor/resour
ces/e/e/eef87150-3a3a4080-9fa2ca97bcf2fd9e/Tadawal
_English.pdf
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 24
m.sa/wps/wcm/connec
t/d6d930dd-e772-4d69932cbc4d2580e58b/Mobily
+FY2020+English+final+si
gned.pdf?MOD=AJPE
RES&CONVERT_TO=u
rl&CACHEID=ROOTW
ORKSPACEd6d930dd-e772-4d69932c-bc4d2580e58bCopyright © 2002 by Harcourt, Inc.
All rights reserved.
nvjs9EA
3 – 25
F.A. and T.A. Turnover versus
Industry Average
Fixed assets
Sales
=
turnover
Net fixed assets
$7,036
=
= 8.61x.
$817
Total assets
=
turnover
Sales
Total assets
$7,036
=
= 2.01x.
$3,497
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 26
2002
FA TO 8.6x
TA TO 2.0x
2001
6.4x
2.1x
2000
10.0x
2.3x
Ind.
7.0x
2.6x
FA turnover projected to exceed
industry average. Good.
TA turnover not up to industry
average. Caused by excessive
current assets (A/R and Inv.)
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 27
Calculate the debt ratio, Time-interestearned (TIE) ratio, and EBITDA
coverage ratios.
Total debt
Debt ratio = Total assets
= $1,145 + $400 = 44.2%.
$3,497
EBIT
TIE =
Int. expense
= $492.6 = 7.0x.
$70
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 28
EBITDA coverage =
EBITDA + Lease payments (in cash)
Interest Lease
Principal
expense + pmt. + repayments
$609.6
+
$40
=
= 5.9x.
$70 + $40 + $0
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 29
How do the debt management ratios
compare with industry averages?
D/A
TIE
EBITDA
coverage
2002 2001 2000
Ind.
44.2% 82.8% 54.8% 50.0%
7.0x -1.0x 4.3x 6.2x
5.9x
0.1x
3.0x
8.0x
D/A and TIE are better than industry
average but EBITDA still below industry
average.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 30
Profit margin vs. industry average?
NI
$253.6
P.M. = Sales = $7,036 = 3.6%.
P.M.
2002
3.6%
2001
-2.7%
2000 Ind.
2.6% 3.5%
Very bad in 2001, but projected to
exceed industry average in 2002.
Looking good.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 31
Basic Earning Power (BEP) vs.
industry average?
EBIT
BEP =
Total assets
$492.6
= $3,497 = 14.1%.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 32
BEP
2002
14.1%
2001
-4.6%
2000
13.0%
Ind.
19.1%
BEP removes effect of taxes and
financial leverage. Useful for
comparison.
Projected to be below average.
Room for improvement.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 33
Return on Assets
Net
income
ROA =
Total assets
$253.6
= $3,497 = 7.3%.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 34
Net income
ROE = Common equity
= $253.6 = 13.0%.
$1,952
ROA
ROE
2002
7.3%
13.0%
2001 2000
Ind.
-5.6% 6.0% 9.1%
-32.5% 13.3% 18.2%
Both below average but improving.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 35
Effects of Debt on ROA and ROE
ROA is lowered by debt–interest
lowers NI, which also lowers ROA =
NI/Assets.
But use of debt lowers equity,
hence could raise ROE = NI/Equity.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 36
Typical Industry Average P/E Ratios
Industry
P/E ratio
Banking
16.58
Computer Software Services
84.28
Drug
43.89
Electric Utilities (Eastern U.S.) 25.28
Internet Services*
326.53
Semiconductors
85.44
Steel
12.38
Tobacco
11.07
Water Utilities
22.30
* Because many internet companies have negative earnings and no
P/E, there was only a small sample of internet companies.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 37
Price per share
P/E =
Earning per share
$12.17
= $1.48 = 8.21x.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 38
Com. equity
BVPS =
Shares out.
$1,952
=
= $7.81.
250
Mkt. price per share
M/B =
Book value per share
$12.17
= $7.81 = 1.56x.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 39
P/E
2002
12.0x
2001
-1.4x
2000
9.7x
Ind.
14.2x
M/B
1.56x
0.5x
1.3x
2.4x
 P/E: How much investors will pay for
$1 of earnings. High is good.
 M/B: How much paid for $1 of BV.
Higher is better.
 P/E and M/B are high if ROE is high,
risk is low.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 40
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 41
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 42
The Du Pont system focuses on:
Expense control (P.M.)
Asset utilization (TATO)
Debt utilization (Eq. Mult.)
It shows how these factors combine
to determine the ROE.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 43
ROE= NI/E
ROA*E multiplier
NI/T.A*T.A/E
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 44
Profit
margin
TA
turnover
NI
Sales
Sales
TA
2000 2.6% x 2.3
2001 -2.7% x 2.1
2002 3.6% x 2.0
Ind.
3.5% x 2.6
Copyright © 2002 by Harcourt, Inc.
Equity
multiplier
TA
CE
x
x
x
x
2.2 = 13.3%
5.8 = -32.5%
1.8 = 13.0%
2.0 = 18.2%
All rights reserved.
3 – 45
1. Explain how the extended, or modified,
Du Pont equation can be used to reveal
the basic determinants of ROE.
What is the equity multiplier?
2. A company has a profit margin of 6%, a
total asset turnover ratio of 2, and an
equity multiplier of 1.5. What is its ROE?
18%
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 46
Simplified D’Leon Data
A/R
878 Debt
Other CA
1,802 Equity
Net FA
817
Total assets $3,497 L&E
Sales
day
1,545
1,952
$3,497
$7,035,600
=
= $19,275.62.
365
Q. How would reducing DSO to 32
days affect the company?
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 47
Effect of reducing DSO from
45.6 days to 32 days:
Old A/R = 19,275.62 x 45.6 = 878,000
New A/R = 19,275.62 x 32.0 = 616,820
Cash freed up:
261,180
Initially shows up as additional cash.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 48
New Balance Sheet
Added cash
A/R
Other CA
Net FA
Total assets
$
261 Debt
$1,545
617 Equity
1,952
1,802
817
$3,497 Total L&E $3,497
What could be done with the new
cash? Effect on stock price and risk?
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 49
Potential use of freed up cash
Repurchase stock
Expand business
Reduce debt
All these actions would improve
stock price.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 50
What are some potential problems and
limitations of financial ratio analysis?
Comparison with industry averages
is difficult if the firm operates many
different divisions.
“Average” performance not
necessarily good.
Seasonal factors can distort ratios.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 51
“Window dressing” techniques can
make statements and ratios look
better.
Different operating and accounting
practices distort comparisons.
Sometimes hard to tell if a ratio is
“good” or “bad.”
Difficult to tell whether company is,
on balance, in strong or weak
position.
Copyright © 2002 by Harcourt, Inc.
All rights reserved.
3 – 52
What are some qualitative factors
analysts should consider when
evaluating a company’s likely future
financial performance?
Are the company’s revenues tied to
1 key customer, product, or
supplier?
What percentage of the company’s
business is generated overseas?
Competition
Future prospects
Copyright
© 2002 by
Harcourt,
Inc.
All rights reserved.
Legal
and
regulatory
environment

Purchase answer to see full
attachment

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

  A number of models have been developed to explain the variety of leadership styles that school administrators need be able to utilize in order to be

  A number of models have been developed to explain the variety of leadership styles that school administrators need be able to utilize in order to be effective leaders and decision-makers in the ever-changing situations present in schools.  These include Hersey and Blanchard’s (1984) situational leadership, Fiedler’s (1973) Contingency Model,

Why do wrongful convictions occur in Capital cases?  A comprehensive explanation is warranted to illustrate at least three reasons why these erroneous

Why do wrongful convictions occur in Capital cases?  A comprehensive explanation is warranted to illustrate at least three reasons why these erroneous convictions occur.  One comprehensive and concise paragraph will answer the question properly One paragraph and three subsections will reasonably  respond to the multi-dimensional question  Grammar and diction are

   DESIGNING A NURSING INFORMATICS PROJECT FOR YOUR ORGANIZATION  PHASES OF PROJECT MANAGEMENT TABLE 3.3 Scope Statement Organization’s

   DESIGNING A NURSING INFORMATICS PROJECT FOR YOUR ORGANIZATION  PHASES OF PROJECT MANAGEMENT TABLE 3.3 Scope Statement Organization’s name: Project’s name: Scope document: Project manager: Priority level: Low, Medium, High   Sponsors:     Mission statement: Measurable project objectives: Justification: Implementation strategy: Project resources: Completion date: Measures of success/critical success factors:

EDLC 510 Understanding Special Education Paper Assignment Instructions Overview Special education provides educational opportunities for

EDLC 510 Understanding Special Education Paper Assignment Instructions Overview Special education provides educational opportunities for students who need additional support to make academic or social progress in school. All educators need to understand the components of special education because effective special education programs include collaboration with a variety of educators,

Details are included in the link 1 4 Self-Appraisal of Internship Experience

Details are included in the link 1 4 Self-Appraisal of Internship Experience Self-Appraisal At the first of a paper, compose an introductory paragraph about the paper. Remember that paragraphs must have at least 3 sentences. All APA 7th style papers must be double-spaced including the references. This paper is a

IT 226 Project Two Guidelines and Rubric Competency In this project, you will demonstrate your mastery of the following competencies: ·

IT 226 Project Two Guidelines and Rubric Competency In this project, you will demonstrate your mastery of the following competencies: · Determine appropriate ways to communicate information to internal and external stakeholders · Apply communication techniques to effectively negotiate and manage conflict Scenario You are the manager of a team of 10 software developers working on a new application for your company, Optimum Way Development, which is based out of Raleigh, North Carolina. Your organization recently acquired a smaller software company based in San Jose, California. You have been informed that your team will be bringing on five people from this newly acquired company; all five people will be moving to Raleigh to join your team. You schedule a phone call with the five new team members and discover that they are upset about the recent impersonal message they received from human resources informing them that they would have to relocate to Raleigh in order to stay employed; no one expressed excitement about joining the team. During this conversation, you also discover that many of the new team members have more education and experience than the people currently on your team. Based on the conversation, you notice that most of these team members are likely older than you, whereas all of the current Raleigh team members are younger than you. After the call, one of your current senior team members approaches you about rumors that are circulating concerning the Raleigh team being required to train the new team members from San Jose. They heard that there are plans to eliminate positions and are concerned the new hires will ultimately be taking their positions. The director who oversees your division has requested that you create and present a recommendation report that documents your plans for managing the conflicts that currently exist or may arise on your team. The director has an advanced degree in a computer science-related field and has worked in technology for over a decade. Directions In order to identify and resolve existing and future conflicts, you have been asked to compose and present your plan for managing conflict for this project. In addition to identifying and resolving the conflicts, you are also responsible for keeping the development of the new application moving forward by continuing to meet scheduled milestones. To do this, you will create a recommendation report and corresponding presentation. The audience for both deliverables is your director. As you create your report and presentation, remember to  use communication techniques and platforms that are appropriate for your audience’s preferences and motivations. Both deliverables should be based on the above scenario and include the following: 1. To start,  explain the major elements of the software application, including background, audience, functions, and features. 2. Next,  explain the areas of conflict for the team. Make sure to include contributing factors and the possible impacts. 3. Articulate the desired outcome of any conflict resolution activities. · How would you like to see this conflict resolved? · What is the “best-case” scenario? 4. Recommend action steps for managing areas of possible conflict with a detailed explanation on how the action steps contribute to conflict resolution. 5. In the presentation only,  use dialogue to communicate the appropriate main ideas to the audience. Although you will not give this presentation over video, you should use the speaker’s notes section in PowerPoint to write the accompanying speech. What to Submit To complete this project, you must submit the following: Recommendation Report Your report should be at least 2 full pages in length (not including a title page), single-spaced and submitted as either a Word document or PDF. Outside resources are not required, but any resources used must be appropriately cited using APA style. You may use the  Recommendation Report Template Word Document for this submission. Presentation Your presentation should be in a presentation format (such as PowerPoint) and  provide an overview of the main ideas from the recommendation report. Using the speaker’s notes section of PowerPoint, include the speech that would accompany the presentation. Outside resources are not required, but any resources used must be appropriately cited using APA style. Supporting Materials The following resource(s) may help support your work on the project: Resource:  Software Design Documents Use one of these software design documents to summarize the application in your report and presentation. Shapiro Library Resource:  Shapiro Library APA Style Guide This Shapiro Library guide goes over the basics of APA-style formatting and citations.