Calculate the following ratios for 2016 and show the steps involved:
a) Inventory turnover ratio
b) average days in inventory
c) receivables turnover ratio
d) average collection period
e) asset turnover ratio
f) profit margin on sales
g) return on assets
h) return on shareholders equity
i) equity multiplier
j) return on shareholders equity using the Du Port framework
Note: See attached balance sheet and income statement below as reference
Homework Answers
| Inventory turnover ratio = Sales / Average inventory | |||||
| Parent Company | Consolidated | ||||
| Sales | 65,797,306 | 92,587,547 | |||
| Opening inventory | 9,256,174 | 14,667,086 | |||
| Closing inventory | 12,838,427 | 20,226,082 | |||
| Avergage inventory = (Opening inventory + closing inventory) / 2 | 11,047,301 | 17,446,584 | |||
| Inventory turnover ratio | 5.96 | 5.31 | |||
| Average days in inventory = Number of days in the period / inventory turnover ratio | |||||
| No. of days | 365 | 365 | |||
| Inventory turnover ratio | 5.96 | 5.31 | |||
| Average inventory in days | 61.28 | 68.78 | |||
| Rounded off | 61 days | 69 days | |||
| Receivables turnover ratio = Sales / Average receivables | |||||
| Sales | 65,797,306 | 92,587,547 | |||
| Opening receivables | 6,457,312 | 9,021,718 | |||
| Closing receivables | 7,053,962 | 8,610,739 | |||
| Avergage receivables = (Opening receivables + closing receivables) / 2 | 6,755,637 | 8,816,229 | |||
| Receivable turnover ratio | 9.74 | 10.50 | |||
| Average collection period = Number of days in the period / receivables turnover ratio | |||||
| No. of days | 365 | 365 | |||
| Receivable turnover ratio | 9.74 | 10.50 | |||
| Average collection period | 37.48 | 34.76 | |||
| Rounded off | 37 days | 35 days | |||
| Asset turnover ratio = Sales / Average Total assets | |||||
| Sales | 65,797,306 | 92,587,547 | |||
| Opening assets | 185,138,342 | 203,662,569 | |||
| Closing assets | 185,358,281 | 208,453,126 | |||
| Average assets = (Opening assets + closing assets) / 2 | 185,248,312 | 206,057,848 | |||
| Asset turnover ratio | 0.36 | 0.45 | |||
| Profit margin on sales = Net income / Sales | |||||
| Net income | 16,638,580 | 20,710,308 | |||
| Sales | 65,797,306 | 92,587,547 | |||
| Profit margin on sales | 0.2529 | 0.2237 | |||
| Profit margin on sales % | 25.29% | 22.37% | |||
| Return on assets = Net income / Average Total assets | |||||
| Net income | 16,638,580 | 20,710,308 | |||
| Average Total assets | 185,248,312 | 206,057,848 | |||
| Return on assets | 0.09 | 0.10 | |||
| Return on assets % | 8.98% | 10.05% | |||
| OR | |||||
| Return on assets = Asset turnover ratio * Profit margin on sales | |||||
| Asset turnover ratio | 0.36 | 0.45 | |||
| Profit margin on sales | 0.2529 | 0.2237 | |||
| Return on assets | 0.09 | 0.10 | |||
| Return on assets % | 8.98% | 10.05% | |||
| Return on shareholder equity = Profit after tax / Average shareholders' equity | |||||
| Profit after tax | 16,638,580 | 20,710,308 | |||
| Opening shareholders' equity | 133,990,614 | 148,017,133 | |||
| Closing shareholders' equity | 140,629,194 | 158,825,212 | |||
| Avergage shareholders' equity = (Opening equity + closing equity) / 2 | 137,309,904 | 153,421,173 | |||
| Return on shareholder equity | 0.1212 | 0.1350 | |||
| Return on shareholder equity % | 12.12% | 13.50% | |||
| Equity multiplier = Total assets / Shareholders' equity |
Calculate the following ratios for 2015 and show the steps
involved:
a) Inventory turnover ratio
b) average days in inventory
c) receivables turnover ratio
d) average collection period
e) asset turnover ratio
f) profit margin on sales
g) return on assets
h) return on shareholders equity
i) equity multiplier
j) return on shareholders equity using the Du Port framework
Note: See attached balance sheet and income statement below as
reference
We were unable to transcribe this imageAS AT 31 DECEMBER...
Calculate the following ratios for 2014 and show the steps
involved:
a) Inventory turnover ratio
b) average days in inventory
c) receivables turnover ratio
d) average collection period
e) asset turnover ratio
f) profit margin on sales
g) return on assets
h) return on shareholders equity
i) equity multiplier
j) return on shareholders equity using the Du Port framework
Note: See attached balance sheet and income statement below as
reference
Notes Parent Company 2014 2013 RO RO Consolidated 2014 2013...
Calculate the following ratios for 2012 and show the steps
involved:
a) Inventory turnover ratio
b) average days in inventory
c) receivables turnover ratio
d) average collection period
e) asset turnover ratio
f) profit margin on sales
g) return on assets
h) return on shareholders equity
i) equity multiplier
j) return on shareholders equity using the Du Port framework
Note: See attached balance sheet and income statement below as
reference
Parent Company 2012 RO Consolidated 2012 Notes 2011 2011 RO...
Calculate the following ratios for 2013 and show the steps
involved:
a) Inventory turnover ratio
b) average days in inventory
c) receivables turnover ratio
d) average collection period
e) asset turnover ratio
f) profit margin on sales
g) return on assets
h) return on shareholders equity
i) equity multiplier
j) return on shareholders equity using the Du Port framework
Note: See attached balance sheet and income statement below as
reference
Statement of financial position at 31 December 2013 Consolidated Notes...
1. Using the attached information, calculate for 2015
and 2016 the following:
a) Receivables turnover,Inventory turnover, and
Payable turnover.
b)Receivables period,Inventory period,and Payable
period.
c)Operating Cycle and Cash Conversion cycle
2. Discuss the changes that took place from 2015 to
2016 and suggest the ways how the company could improve its
performance
Balance Sheets for Years Ended 2014, 2015, and 2016 ASSETS 2014 2015 2016 Cash and marketable securities Receivables Inventories Total current assets Grass plant and equipment less accumulated...
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Part 1: Ratio Analysis calculate the following ratios
Part 2: Perform a vertical analysis of statement of financial
position & Income statement
Part 3: Perform a Horizontal Analysis of statement of
Financial Position for 2015 and 2014 & Income statement for
2015
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A.
Required:
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capital, b)
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ratio, e) days’ sales
in receivables (based on ending accounts receivables), f) days’
sales in
inventory (based on cost of goods and ending inventory), g)
operating cycle,
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Calculate the following ratios for Urban Outfitters for
both 2016 and
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a. Gross profit margin
b. Operating profit margin
c. Net profit margin
d. Times interest earned coverage
e. Return on shareholders’ equity
f. Return on assets
g. Debt-to-equity ratio
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i. Inventory turnover ratio
j. Average collection period
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