Question 2 a. Use the spreadsheet to calculate as many of the company\'s Profita
ID: 2485848 • Letter: Q
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Question 2 a. Use the spreadsheet to calculate as many of the company's Profitability, Turnover-Control, and Leverage and Liquidity ratios as you can for these years (see output area for a list of ratios) b. What do these ratios suggest about the company's performance over this period? area area ANNUAL BALANLE SHEL $ MILLIONS MENS WEARHOUSE INC 2009 2008 99.367 492.423 2006 2010 2009 2008 200Z 2006 ASSETS Cash & Short-Term Investments Net Receivables Inventories Prepaid Expenses Other Current Assets Profitability Ratios (in %) 179.694 on 40.662 440.099 26.603 Return on assets 431.492 448.586 Profit margin Gross margin Turnover-Control Ratios Fixed-asset turnover Total Current Assets 708.330631.615 670.995680.829729.612 Gross Plant, Property & Equipment Accumulated Depreciation 866.005 521.259 885.981 498.509 865.084 454.917 669.340 379.700 611.957 Inventory turnover 342.371 269.586 61.003 ollectión peri Days' sales in cash Payables period Net Plant, Property & Equipment Intangibles 410.167 75.609 289.640 61.765 65.268 Leverage and Liquidity Ratios Assets to equity Debt to assets Debt to equity Times interest earned Current ratio Quick ratio (aka acid test) TOTAL ASSETS 1,232.106 1,187.730 1256.467 1096.952 1,123.274 LIABILITIES Long Term Debt Duel Accounts Payable Taxes Fayable Accrued Expenses Other Current Liabilities 108.800 19.676 75.458 21.086 66.542 117.047 035 220.223 277.255 92.399 66.876 440.530 Total Current Liabilities 238.085 Long Term Debt Deferred Taxes Other Liabilities 72.967 12.200 62.236 TOTAL LIABILITIES 329.762 345.582 495.741 EQUITY Common Stock Capital Surplus Retained Earnings Less: Treasury Stock 327.742 986.523 412.626 315.404 938.580 412.536 305.209 775.857 641.558 269.910 627.533 1,232.106 1,187.730 1256.467 1096.952 1,123.274 53.069 842.148 753.772 TOTAL EQUITY TOTAL LIABILITIES &EQUITY; Common Shares Outstanding 902.344 815.937 52.288Explanation / Answer
4.95%
Return on Equity => Net inceom / Shareholder equity
Return on Asstes => Net INCOME / Total Assets
Profit Margin => Net Inceom / Net Sales
Gross Margin => Gross Profit / NEt sales
Asset Turnover => Net Sales / Average Assets
Fixed Asset Turnover => Net Sales / Fixed Assets
Inventory turnover => COGS / Average Inventory
Collection period (days) => Average Receivable *365 / Net sales
Days sales in cash => Cash *365 / Sales
Payables Period => COGS / Avearge Account Payable
Assets to Equity => Total Assets/ Equity
Debts to Assets=> Total lIabilities /Total Asests
.Debt to Equity => Total Liabilities / Total Equity
Time Interest Earned => Opeartion Income / Interest
Current Rtaio => Current Assest/ Current liabilties
Quick ratio => Current Assest - Inventories/ Current liabilties
2010 2009 2008 2007 2006 PROFITABILTY RATIOS Return on Equity 4.95% 6.98% 18.02% 19.71% 16.56% Return on Asstes 3.63%4.95%
11.70% 13.5% 9.25% Profit Margin 2.34% 2.98% 6.96% 7.89% 6.02% Gross Margin 46.28% 47.71% 49.72% 46.60% 44% TUROVER CONTROL RATIOS Asset Turnover 1.58 1.61 1.80 1.70 1.54 Fixed Asset Turnover 5.54 5.09 5.15 6.50 6.40 Inventory turnover 2.35 2.21 2.26 2.32 2.32 Collection period (days) 5.49 days 6.06 days 3.62 days 3.52 days 4.07 days Days sales in cash 35.55 days 19.34 days 17.16 days 34.85 dyas 55.65 days Payables Period 10.69 8.07 8.24 8.51 7.72 LEVARAGEB &LIQUIDITY Assets to Equity 1.37 1.41 1.54 1.45 1.79 Debts to Assets 0.26 0.29 0.35 0.31 0.44 Debt to Equity 0.37 0.41 0.54 0.46 0.79 Time Interest Earned 195.80 21.73 45.31 24.30 28.07 Current ratio 3.16 2.87 2.42 3.01 3.06 Quick ratio 1.24 0.86 0.64 1.03 1.31Related Questions
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