Asipfabv o (Edit)

8/10/2019 Asipfabv o (Edit)

1/19

ex 1

Ratio

asuring ability to pay current liabilitiesurrent Ratio

cid-test (Quick) Ratio

asuring ability to sell inventory and collect receivables

ventory Turnover

ccounts Receivable Turnover

ays sale in receivables

asuring ability to pay long-term debt

ebt Ratio

mes-interest-earned ratio

asuring profitability

ate of return on net sales

ate of return on total assets

Rate of return on common stockholders equity

Earnings per share of common stock

lyzing stock as an investment

Price/ earnings ratioDividend yield

Book value per share of common stock


2/19

mputation of Ratios

mpany Name:

r:

Formula

rent Assets / Current Liabilities

h + STI + Net Current Receivables / Current Liabilities

t of goods sold / Average Inventory

Credit Sales / Average Net Account Receivables

rage Net Accounts Receivables / One Days Sales

al Liabilities / Total Assets

me from Operations / Interest Expense

Income / Net Sales

Income + Interest Expense / Average Total Assets

Income - Preferred Dividends / Average Common Stockholders Equity

Income - Preferred Dividends / No. of Common Shares Outstanding

ket Price Per Share / Earnings Per Shareual Dividends Per Share / Market Price Per Share

al SHE- Preferred equity / No. of Common Shares Outstanding


3/19


4/19


5/19

ex 3:

Ratio

asuring ability to pay current liabilities

urrent Ratio



ventory turnover

ccounts receivable turnover

ays' sale in receivables


ebt Ratio





Rate of return on common stockholders' equity

Earnings (Loss) per share of common stock


Price/ earnings ratio

Dividend Yield



6/19

mputation of Ratios

mpany Name:

r:

Formula



t of goods sold / Average inventory

Credit Sales / Ave net accounts receivable

net accounts receivable / One day's sales

al liabilities / Total assets

me from operations / Interest expense

Income / Net Sales

income + Interest expense / Ave total assets

Income - Preferred Dividends / Ave common stockholders' equity

income - Preferred Dividends / No. of shares of common stock outstanding

ket price per share of common stock / earnings per share

ual div per share of common (or preferred) stock / MPS of common (or preferred) stock

al SHE - Preferred equity / No. of shares of common stock outstanding


7/19

d

2

mputation Result

,094 / 68,715 2.07

659 + 20,284 + 71,510 + 10,828) /

715

1.72

,578 / (7,362 + 5,901 / 2) 16.97

,252 / (71,510 + 69,976 / 2) 1.9

743 / 368 192 days

,243 / 190,554 0.91 or 91%

,584 / 3,828 39.03

65 / 134,252 0.04 or 4%

65 + 3,828 / (190,554 + 178,348 / 2) 0.05 or 5%

65 / (15,989 + 15,071/2) 0.36

65 / 3,875 1.46

42 / 1.46 7.14

/ 10.42 0.005

989 / 3,875 4.13


8/19

Interpretation

d has P2.07 of current assets to pay P1 of current liability. They have sufficient current assets.

companys ratio is significanttly better than the industry average.

is good because it means that the company was able to turnover their goods at least 4 times each season.

s low for a company like Ford, but given the fact that they sell cars, their receivables turnover is enough. Thi

lar to the one stated above, it is alright that their days sale in receivables takes 192 days because they are a

ds debt ratio is 91% meaning almost all their assets are supported through loans. They are in a high-risk posi

ds 39.03 ratio suggests ease in paying its interest expense.

each sales dollar, Mitsubishi earned .04 as net income. This is better.

ording to sources online, the average asset ratio as of 2012 was 3.5%. For this case, Ford resulted to 5% retu

d is doing well with a 36% equity ratio.

wing that EPS per companies try to reach an amount of 10% - 15% annually, Ford was successful for 2012, g

d's stock is selling at 7.14 times one year's earnings.

nvestor who buys Ford's common stock for $ 10.42 can expect to receive .5% of the investment annually.

is good because to the investors, the lower the ratio, the more attractive the stock.


9/19

Fords Industry Average is a 16.97, proving that they have been doing well.

n still be improved though.

company.

n assets. This is a much better ending result.

g way more than 15% compare to 2011.


10/19

ex 3:

Ratioasuring ability to pay current liabilities

urrent Ratio



ventory turnover




ebt Ratio









Dividend Yield



11/19

mputation of Ratios

mpany Name:

r:

Formula








Income / Net Sales








12/19

Mitsubishi

2011

Computation Result

,579 / 700,584 1.05

,464 + 114,432 + 25,495 + 7,019/ 700,584 0.66

38,879 / (189,286 + 183,869 / 2) 8.25

28,497 / (114,432 + 121,385 / 2) 15.5

,909 / 5,010 24 days

64,419 / 1,312,511 0.81

274 / 13,215 3.05

621 / 1,828,497 0.0085

621 + 13,215 / (1,312,511 + 1,258,669 /2) 0.02

621 - 50,000 / (121,009 + 105,221 / 2) -0.30

621 - 50,000 / 5,537 -6.21

02 / -6.21 338.49

,102 0.0028

,009 / 5,537 21.85


13/19

Interpretation

sibishi has Y1.05 current assets to pay Y1 of current liability. This is good.

subishi has Y0.66 of quick assets to pay Y1 of current liabilities. This is a weak position.

subishi sold inventory 8.25 times per year. This is something that needs to be improved.

subishi's receivable turnover of 15.5 is good.

kes Mitsubishi 24 days to collect its accounts receivable. This is good.

subishi owes Y.81 for every Y1 in total assets. This borders on high risk.

subishi appears to have little difficulty servicing its debt.


every Y1 of asset invested, Mitsubishi earned .02. This is good.

every Y1 invested by common stockholders, Mitsubishi lost 0.30. This is bad.

each share of the company's outstanding common stock, Mitsubishi lost 6.21. This is bad.

is bad because Mitsubishi got negative for the P/E ratio.

industry is paying this annually.



14/19

ex 3:

Ratioasuring ability to pay current liabilities

urrent Ratio



ventory turnover




ebt Ratio

mes-interest-earned ratioasuring profitability







Dividend Yield



15/19

mputation of Ratios

mpany Name:

r:

Formula








Income / Net Sales








16/19

Ford

2011

Computation Result

,046 / 63,093 2.11

148 + 18,618 + 69,976 + 8,565 / 63,093 1.81

,345 / (5,901 + 5,917 / 2) 19.18

,264 / (69,976 + 70,070 /2) 1.95

023 / (136,264 / 365) 188 days

,277 / 178,348 0.92

222 / 4,431 4.56

213 / 136,264 15%

213 + 4,431 / (178,348 + 164,687 /2) 14%

213 / (15,071 + (-642) / 2) 2.8

213 / 3,745 5.4

62/ 5.4 1.96

/ 10.62 0.005

071 / 3,745 4.02


17/19

Interpretation

d has P2.11 of current assets to pay P1 of current liability. They have sufficient current assets.

companys ratio is significanttly better than the industry average.

is good because it means that the company was able to turnover their goods at least 4 times each season.

5 is low for a company like Ford, but given the fact that they sell cars, their receivables turnover is enough. T

lar to the one stated above, it is alright that their days sale in receivables takes 188 days because they are a

ds debt ratio is 92% meaning almost all their assets are supported through loans. They are in a high-risk posi

ds 4.56 ratio suggests difficulty in paying its interest expense.


ording to sources online, the average asset ratio as of 2012 was 3.5%. For this case, Ford resulted to 14% ret

d is not doing well with a 2.4 equity ratio.

each share of the company's outstanding common stock, Mitsubishi earns 5.4. This is good.

d's stock is selling at 1.96 times one year's earnings.

nvestor who buys Ford's common stock for $ 10.42 can expect to receive .5% of the investment annually.



18/19

Fords Industry Average is a 19.18, proving that they have been doing well.

an still be improved though.

company.

on assets. This is a much better ending result.


19/19

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Asipfabv o (Edit)