财务管理基础 financial management 清华大学出版社ppt6.pptVIP

Basket Wonders’ Common Size Balance Sheets Basket Wonders’ Common- Size Balance Sheets Basket Wonders’ Common- Size Income Statements An analysis of percentage financial statements where all balance sheet or income statement figures for a base year equal 100.0 (percent) and subsequent financial statement items are expressed as percentages of their values in the base year. Index Analyses Basket Wonders’ Indexed Balance Sheets Basket Wonders’ Indexed Balance Sheets Regular (thousands of $) Indexed (%) 200 5 200 6 200 7 200 5 200 6 200 7 Net Sales 1,235 2,106 2,211 100.0 170.5 179.0 COGS 849 1,501 1,599 100.0 176.8 188.3 Gross Profit 386 605 612 100.0 156.7 158.5 Adm. 180 383 402 100.0 212.8 223.3 EBIT 206 222 210 1 00.0 107.8 101.9 Int Exp 20 51 59 100.0 255.0 295.0 EBT 186 171 151 100.0 91.9 81.2 EAT 112 103 91 100.0 92.0 81.3 Cash Div 50 50 50 100.0 100.0 100.0 Basket Wonders’ Indexed Income Statements Interest Coverage EBIT Interest Charges For Basket Wonders December 31, 2007 Indicates a firm’s ability to cover interest charges. Income Statement Ratios Coverage Ratios $210 $59 = 3.56 Coverage Ratios BW Industry 3.56 5.19 4.35 5.02 10.30 4.66 Year 2007 2006 2005 Interest Coverage Ratio BW has below average interest coverage relative to the industry average. Coverage Ratio Comparisons Trend Analysis of Interest Coverage Ratio 3.0 5.0 7.0 9.0 11.0 2005 2006 2007 Analysis Year Ratio Value BW Industry Coverage Ratio – Trend Analysis Comparison This indicates that low earnings (EBIT) may be a potential problem for BW. Note, we know that debt levels are in line with the industry averages. The interest coverage ratio for BW has been falling since 2005. It has been below industry averages for the past two years. Summary of the Coverage Trend Analysis Receivable Turnover Annual Net Credit Sales