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Calculate the 3 ratios (show your calculations) for the company using the two most recent annual financial statements found on the financial information website you used earlier. Be careful not to use quarterly information, and include ratios for both years.

Efficiency Ratios:

Collection Period Ratio

Sales to Inventory Ratio

Assets to Sales Ratio

Company selected is Microsoft and data can be found here:

http://finance.yahoo.com/q/is?s=MSFT+Income+Statement&annual

http://finance.yahoo.com/q/bs?s=MSFT+Balance+Sheet&annual

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Casey Durgan
Casey DurganLv2
28 Sep 2019

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Help with these 2 bellow put links for financial statements bellow because its a lot to input in here.

D. For Apples closest competitors(Samsung and GOOGLE), prepare an analysis of as many of the 13 key ratios as you can for the latest year information is available. Then chart the results of the key ratios of the 3 companies for the latest common year that you can obtain information on, and provide a discussion of your interpretation of the results and which company seems to be in the best and worst financial shape.

E. Finally, for the three companies in (D) above, prepare an analysis of the P/E (price to earnings) ratio for a three period and contrast those numbers with the financial results of each of the companies.. Determine if there is any correlation of the P/E ratios with the financial performance and strength (or weakness) of each of the companies

Samsung 2016 2015 2014

PROFIT Margin 11.1% 9.32% 11.2%

Return on Asset 8.6% 7.7% 10%

Return on Equity 11.6% 10.4% 13.7%

Inventory Turnover 11 10.67 11.91

Total Asset Turnover 1.3 1.21 1.12

Current Ratio 2.59 2.47 2.21

Quick Ratio 2.25 2.1 1.9

Debt to total Assets 26.4% 26.1% 27.1%

https://finance.yahoo.com/quote/005930.KS/balance-sheet?p=005930.KS

Google 2016 2015 2014

Profit Margin 21.6% 21.8% 21.4%

Return on Asset 5.6% 5.8% 3.9%

Return on Equity 4.2% 4.3% 3%

Inventory Turnover 336.84

Total Asset Turnover 1.86 1.97 1.96

Current Ratio 6 5 5

Quick Ratio 6.28 4.67 4.69

Debt to total Assets 17% 18.4% 19.6%

https://www.google.com/finance?fstype=ii&q=NASDAQ:GOOG

Apple 2016 2015 2014

Profit Margin 21.2% 22.9% 21.6%

Return on Asset 2.5% 3.1% 3.7%

Return on Equity 6.3% 7.5% 7.6%

Inventory Turnover 101.14 99.5 86.59

Total Asset Turnover 1.49 1.24 1.27

Current Ratio 1.35 1.11 1.08

Quick Ratio 1.33 1.08 1.05

Debt to total Assets 60.1% 58.9% 51.9%

https://finance.yahoo.com/quote/AAPL/balance-sheet?p=AAPL

Price earning ratio

Apple 17.88

Samsung 14.41

Google 29.88

Book: Financial management

1. Review the requirements of the Chapter 3 Mini-Case, parts b through j. Then apply those requirements to do an analysis of Brinker International, which is a real company. Don't complete the minicase itself, just Brinker. Do the analysis on the basis of the figures for the most recent year. For part g, use the 2 most recent years. Download 10K financial statements for the most recent year for Brinker. A good source is the company's home page. Also compare the Brinker ratios to the industry averages and commend on significant differences. You'll note that some of the company's ratios you calculate won't agree with those found on the web page. Ratios are calculated in different ways, however, you should use the formulas in the text. Also, you won't find all of the industry averages, but you will find most of them. You'll need the company's stock price for several of the ratios; use the fiscal year end price. The company's stock symbol is EAT.

(Visit Brinker web site) (Links to an external site.)

(Access industry averages) (Links to an external site.)

Note:

All quantitative work must be done in Excel; Word is not acceptable. You can download Brinker's 10K (annual financial statements they send the Securities and Exchange Commission each year) at the following site:

http://phx.corporate-ir.net/phoenix.zhtml?c=119205&p=irol-sec

You then need to take the various items off the financial statements such as Revenues, Inventory, etc. and calculate the ratios to answer the case questions.

b. calculate the 2014 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company’s liquidity position in 2012, 2013, and as projected for 2014? We often think of rations as being useful 1. To managers to help run the business, 2. To bankers for credit analysis, and 3. To stockholders for stock valuation. Would these different types of analysts have an equal interest in the liquidity ratios?

c. Calculate the 2014 inventory turnover, days sales outstanding, fixed assets turnover, and total assets turnover. How does Brinker utilization of assets stack up against that of other firms in its industry?

d. calculate the 2014 debt ratio, liabilities to assets ratio, times-interest-earned, and EBITDA coverage ratios. How does Brinker compare with the industry with respect to financial leverage: what can you conclude from these ratios:

e. Calculate the 2014 profit margin, basic earning power, return on assets, and return on equity. What can you say about these ratios?

f. Calculate the 2014 price/earnings ratio, price/cash flow ratio, and market/book ratio. Do these ratios indicate the investors are expected to have a high or low opinion of the company?

g. Perform a common size analysis and percentage change analysis. What do these analyses tell you about Brinker?

h. use the extended DuPont equation to provide a summary and overview of Brinker’s financial condition as projected for 2014. What are the firm’s major strengths and weaknesses?

i. What are some potential problems and limitations of financial ratio analysis?

j. What are some qualitative factors that analysts should consider when evaluating a company’s likely future financial performance.

Given the BS and IS for Simmons Mfg. Co., compute the ratios on the next page. For each ratio indicate if Simmons is doing better or worse than the industry average by providing an “x” in the appropriate box. SHOW CALCULATIONS ON NEXT PAGE BELOW THE CHART. 15 points

SIMMONS MANUFACTURING COMPANY

Balance Sheet

Assets Liabilities and Stockholders’ Equity

Cash $ 15,000 Accounts Payable $ 21,000

Accts. Receivable 22,000 Notes Payable 20,000

Inventory 30,000 Accrued Expenses 5,000

Current Assets 67,000 Current Liabilities 46,000

Net Fixed Assets 73,000 Long-Term Debt 30,000

Stockholders’ Equity 64,000

Total Liabilities +

Total Assets $ 140,000 Stockholders equity $140,000

Income Statement

Sales (80% credit) $120,000

Less: COGS 45,000

Gross Profit 75,000

Selling & Administrative Expenses 20,000

Rent Expense (lease) 8,000

EBIT 47,000

Interest Expense 5,000

EBT 42,000

Taxes (25%) 10,500

Net Income $ 31,500

Common Shares outstanding 15,000

EPS $ 2.10

Ratio

Ratio

For

Simmons

Industry

Average

Ratios

Better

Worse

Profit margin

17.5%

Return on assets

20.8%

Return on equity

35%

Receivables Turnover

4.44x

Avg. Collection Period

68.0 days

Fixed asset turnover

2.4x

Total asset turnover

.76x

Quick Ratio

.85

Debt to Total Assets

.45

Times interest earned

12.0x

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