RENUKA INDUSTRIES Ratio Actual 2006 Current Ratio 1.7 1.8 2.5 =1531181/616000 1.5 Quick Ratio 1 0.9 1.35 =(25000+805556)/616000 1.2 Inventory turnover 5.2 5 5.29 =3704000/700625 10.2 Average collection period 50.7 days 55.8 days 57.1 =360/(5075000/805556) 46 days Total asset turnover 1.5 1.5 1.62 =5075000/3125000 2.00 Debt ratio 45.8% 54.3% 57.0% =1781250/3125000 24.5% Times interest earned rati 2.2 1.9 1.65 =153000/93000 2.50 Gross profit margin 27.5% 28% 27.0% =1371000/5075000 26.0% Net profit margin 1.1% 1.0% 0.7% =36000/5075000 1.2% Return on total assets 1.7% 1.5% 1.2% =36000/3125000 2.4% Return on common equity 3.1% 3.3% 2.7% =(36000-0)/1343750 3.2% Price/earnings ratio 33.5 38.7 34.5 =11.38/0.33 43.4% Market / book ratio 1 1.1 0.85 =11.38/((1343750-0)/100000) 1.20 Actual 2004 Actual 2005 Industry Average 2006 Analyze the firm's current financial position from both cross-sectional and a time-series viewpoint. Break your analysis in to evaluations of the firm's (a) Liquidity, (b) activity, (c) debt, (d) profitability and (e) market. Summarize the firm's overall financial position on the basis of your findings in part b.

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Renuka

RENUKA INDUSTRIES

RatioActual 2004Actual 2005Actual 2006Industry Average 2006Analyze the firm's current financial position from both cross-sectional and a time-series viewpoint. Break your analysis in to evaluations of the firm's (a) Liquidity, (b) activity, (c) debt, (d) profitability and (e) market.

Current Ratio1.71.82.5=1531181/6160001.5Quick Ratio10.91.35=(25000+805556)/6160001.2Inventory turnover5.255.29=3704000/70062510.2Average collection period 50.7 days55.8 days57.1=360/(5075000/805556)46 daysTotal asset turnover1.51.51.62=5075000/31250002.00Debt ratio45.8%54.3%57.0%=1781250/312500024.5%Times interest earned ratio2.21.91.65=153000/930002.50Gross profit margin27.5%28%27.0%=1371000/507500026.0%Net profit margin1.1%1.0%0.7%=36000/50750001.2%Return on total assets1.7%1.5%1.2%=36000/31250002.4%Summarize the firm's overall financial position on the basis of your findings in part b.Return on common equity3.1%3.3%2.7%=(36000-0)/13437503.2%Price/earnings ratio33.538.734.5=11.38/0.3343.4%Market / book ratio11.10.85=11.38/((1343750-0)/100000)1.20

IBC

Ratio19X119X2

Liquidity:Net working capital =115852-7915036702=116540-8410032440Current Ratio=115852/791501.46=116540/841001.39-Quick Ratio=(10900+5877+32975)/791500.63=(12500+7425+30950)/841000.60-ActivityAccount Receivable Turnover=1025125/3297531.09=1075400/3095034.75Average collection period =360/31.0911.58=360/34.7510.36Inventory turnover=690300/5895011.71=725700/5632012.89Average age of Inventory - days=360/11.7130.74=360/12.8927.93Operating cycle=11.58+30.7442.32=10.36+27.9338.29-Total Asset Turnover=1025125/6529521.57=1075400/6682401.61+LeverageDebt ratio=79150/6529520.12=84100/6682400.13Debt / Equity ratio=79150/3027520.26=84100/3262400.26-Times interest earned ratio=40100/173752.31=46750/146203.20-ProfitabilityGross profit margin=(1025125+350-690300)/102512532.7%=(1075400+1200-725700)/107540032.6%-Net profit margin=12525/10251251.22%=12705/10754001.18%+Return on total assets=12525/6529521.92%=12705/6682401.90%+Return on common equity=(12525-0)/3027524.14%=(12705-0)/3262403.89%+Market Value Earnings per share=(12525-0)/171000.73=(12705-0)/171000.74Price/Earnings ratio=9.10/.73212.43=9.50/.74312.79Book Value per share=(302752-0)/1710017.70=(326240-0)/1710019.08Dividend yield =.365/9.100.04=.3947/9.500.04Dividend payout =.365/.7320.50=.3947/.7430.53-Dividend per share =6250/171000.37=6750/171000.39

Martin

MARTIN MANUFACTURING COMPANY

RatioIndustry AvgActual 2005Actual 2006Analyze the firm's current financial position from both cross-sectional and a time-series viewpoint. Break your analysis in to evaluations of the firm's (a) Liquidity, (b) activity, (c) debt, (d) profitability and (e) market.

Current Ratio1.81.84=72000/690001.04Quick Ratio0.70.78=(500+1000+25000)/690000.38Inventory turnover2.52.59=106,000/455002.33Average collection period 37.5 days36.5 days=360/(160000/25000)56.25Debt ratio65%67%=69000/15000046%Times interest earned ratio3.84=17000/61002.79Gross profit margin38%40%=54000/16000034%Net profit margin3.50%3.60%=6540/1600004.1%Return on total assets4%4%=6540/1500004.4%Return on common equity9.50%8%=(6540-0)/(22950+31500+26550)8.1%Summarize the firm's overall financial position on the basis of your findings in part b.Market / book ratio1.11.2=25/((22950+31500+26550-0)/3000)0.93