corporate ratio iim
DESCRIPTION
iim slideTRANSCRIPT
Sheet1Exhibit 1 Financial Statements for Tire City, Inc.Ratios
For years ending 12/31199319941995For years ending 12/31199319941995Formula
INCOME STATEMENTCurrent ratio2.02551903111.92297015962.0348042262current assets/current liabilitiesquick ratio1.32050173011.28521859821.3542573027(current assets - inventories)/current liabNet sales$16,230$20,355$23,505acid ratio1.32050173011.28521859821.3542573027(cash + AR) / current liabCost of sales9,43011,89813,612interest coverage ratio12.142857142918.160377358523.5EBIT/interest expGross profit6,8008,4579,893Selling, general, and administrative expenses5,1956,3527,471Depreciation160180213inventory t/o5.796.476.22(cogs/inventories)Net interest expense11910694Days receivables57.2455.556.7AR / (net sale/365)Pre-tax income1,3261,8192,115Days inventory63.0956.3958.72Inventory / (net sale/365)Income taxes546822925Days payable23.4323.7622.36Accs payable/(net sales/365)Net income$780$997$1,190Asset turnover2.472.62.62Net sales/Tot assets\Equity turnover4.975.014.69Net sales/equityDividends$155$200$240ROE0.240.250.24Net income/Shareholder's equityBALANCE SHEETROS0.090.0950.094NI(Before interest & tax)/SalesROCE0.340.390.38EBIT/(Total Assets-Current Liabilities)AssetsROA0.130.140.14(Net income +(Interestx(1-Tax rate))/Total assetsCash$508$609$706Accounts receivable2,5453,0953,652Inventories1,6301,8382,190Total current assets4,6835,5426,548
Gross plant & equipment3,2323,7954,163Accumulated depreciation1,3351,5151,728Net plant & equipment1,8972,2802,435
Total assets$6,580$7,822$8,983
LIABILITIES
Current maturities of long-term debt$125$125$125Accounts payable1,0421,3251,440Accrued expenses1,1451,4321,653Total current liabilities2,3122,8823,218
Long-term debt1,000875750
Common stock1,1351,1351,135Retained earnings2,1332,9303,880Total shareholders equity3,2684,0655,015
Total liabilities$6,580$7,822$8,983