April 30, 2003 to April 30, 2013 All numbers in Thousands Expand All?? ? ? ?? 04

Question

April 30, 2003 to April 30, 2013



All numbers   in Thousands



Expand   All?? ? ? ??





04-2013 (Q4) 01-2013 (Q3) 10-2012 (Q2) 07-2012 (Q1) Total Revenue
114,187,000 127,919,000 113,929,000 114,296,000





   -   
- - - - Adjustments   to Revenue



Excise Taxes
- - - -    +   
86,027,000 96,128,000 85,517,000 85,657,000 Cost of Revenue




Gross Profit
28,160,000 31,791,000 28,412,000 28,639,000    -   
21,704,000 23,191,000 22,296,000 21,941,000 Operating   Expenses



Selling, General & Administrative   Expenses 21,704,000 23,191,000 22,296,000 21,941,000 Research and Development Expenses - - - - Amortization Expense - - - - Amortization of Intangibles - - - - Other Operating Expenses 0 0 0 0 Operating Income
6,456,000 8,600,000 6,116,000 6,698,000 Interest Expense
574,000 533,000 590,000 555,000 Other Income/Loss 44,000 56,000 43,000 50,000 Pre-Tax Income
5,926,000 8,123,000 5,569,000 6,193,000 Income Tax Expense 1,981,000 2,247,000 1,744,000 2,032,000 Net Income from   Continuing Operations 3,945,000 5,876,000 3,825,000 4,161,000    +   
0 0 0 0 Non-Recurring   Gains or Losses



Minority Interest
161,000 270,000 190,000 145,000 Total Net Income
3,784,000 5,606,000 3,635,000 4,016,000 Preferred Dividends - - - - Net Income Available to   Common 3,784,000 5,606,000 3,635,000 4,016,000

Explanation / Answer

You have provided us with the profit/loss account statement of the public traded company

Debt and Assets valuation are shown in the balance sheet (Not Provided)

(A) Cash Flow to Revenue Ratio = ( Operating Income / Net Revenue ) *100 %

In Q3, C.F/Revenue = (6,456,000/114,187,000) = 0.05653 = 5.65%

In Q4, C.F/Revenue = 8,600,000/127,919,000 = 0.0672 = 6.72%

In Q2, C.F/Revenue =  6,116,000/113,929,000 = 0.05368 = 5.36%

In Q1, C.F/Revenue = 6,698,000/114,296,000 = 0.0586 = 5.86%

(B) Cash Return on Assets = (Operating Income / Total Assets)

(C) Debt Coverage ratio = (Operating Income / Total Debt)

Assets and Debt Information is Not provided.

Information about these will be available in the Balance Sheet,

(D) Interest Coverage Ratio = Pre Income tax / Interest Expense

  In Q3, Pre Income tax / Interest Expense = 5,926,000 /574,000 = 10.32

  In Q3, Pre Income tax / Interest Expense  = 8,123,000/533,000 = 15.24

  In Q3, Pre Income tax / Interest Expense  = 5,569,000/ 590,000= 9.43

  In Q3, Pre Income tax / Interest Expense  = 6,193,000/ 555,000 = 11.15

(2) When we see the Interest Coverage Ratio, If it is less than 1.5(or 1 ) , then the company is having problems generating enough cash flow to pay its interest expenses.

But here they are far greater than 1.5 , Company Financial Strength is good in terms of Interest payments .

The higher this ratio of Cash flow to Revenue, the better it is for the company. Greater amounts of operating cash flows are always desirable.

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