BUS 312 Lecture Notes - Lecture 2: Asset, Inventory Turnover, Asset Turnover

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 312
• Professor: Martin Thorsten

Document Summary

In the us, public companies report (quarterly and annual) financial statements to their shareholders. Form 10-k reported to the sec: annual statements. Lowe"s company other data (end of 2008) 1,470 million shares outstanding stock price. =. 19 per share market capitalization total market value of equity market capitalization=(nb shares)*(price per share) market capitalization = . 19 1,470 = ,739 mil. Net working capital = current assets - current liabilities = 9,251 8,022 = ,229 million. Net working capital measures the company"s potential reservoir of cash. Measures we will consider: performance (we skip eva, du pont) market-to-book roc, roe, roa, efficiency asset turnover inventory turnover and inventory period receivables turnover . Average collection period: leverage long-term debt ratio, long-term debt-equity ratio, total debt ratio interest coverage, liquidity quick ratio. Ratio of market value of equity to book value of equity. Return on capital= after tax interest + net income average total capital = (1- . 35) 298 + 2,195.