ONLY NEED ANSWERS TO 4 AND 5 Look up the 2013 annual financial statements for Jo

Question

ONLY NEED ANSWERS TO 4 AND 5

Look up the 2013 annual financial statements for Johnson Controls Inc. (ticker: JCI) You can use finance.yahoo.com for this. Be sure to show how you arrived at your answers. Just writing the statistic down will not receive credit.

2. Calculate the following profitability ratios using the financial statements you looked up: Profit margin, Return on Assets, and Return on equity

3. Calculate the following Turnover ratios using the financial statements you looked up: Inventory Turnover, Days' Sales In Inventory, and Total Asset Turnover.

4. Calculate Return on Equity using the Du Point identity. Does this match what you calculated in number 2?

5. If JCI has 685 million shares outstanding at the end of 2013 and a market value of $24 billion. Calculate the price to earnings ratio, and market-to-book ratio. If all of the net income is paid out as dividends, what are the dividends per share?

Explanation / Answer

Q 1& 2

Detail Detail In Billions Ratio Profit Margin Net Profit/Sales 1.18/42.73 2.8% Note : Profit Margin taken as the Operating Margin-Interest expense-Tax Return on Assets Net Income/Total Assets 1.18/31.52 3.7% Return on Equity Net Income for Common Equity/Equity 1.18/12.73 9.3% Inventory Turnover Ratio Beginnig Inventory of Finished Goods+Closing Inventory of Finished Goods/Sales Revenue                        13.47 Day's Sales In Inventory 365/Inventory Turnover Ration                        27.10 Assets Turnover Ratio Sales/Total Assets                          1.36

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.