RENUKA INDUSTRIES

Ratio

Current Ratio
Quick Ratio
Inventory turnover
Average collection period
Total asset turnover
Debt ratio
Times interest earned ratio

Actual
2004

Actual
2005

1.7

1.8

2.5

=1531181/616000

0.9

1.35

=(25000+805556)/616000

1.2

5.2

5.29

=3704000/700625

10.2

50.7 days

55.8 days

57.1

=360/(5075000/805556)

46 days

1.5

1.5

1.62

=5075000/3125000

2.00

45.8%

54.3%

57.0%

=1781250/3125000

24.5%

Actual 2006

Industry
Average 2006

1.5

2.2

1.9

1.65

=153000/93000

2.50

27.5%

28%

27.0%

=1371000/5075000

26.0%

Net profit margin

1.1%

1.0%

0.7%

=36000/5075000

1.2%

Return on total assets

1.7%

1.5%

1.2%

=36000/3125000

2.4%

Return on common equity

3.1%

3.3%

2.7%

=(36000-0)/1343750

3.2%

Price/earnings ratio

33.5

38.7

34.5

=11.38/0.33

43.4%

Market / book ratio

1.1

0.85

=11.38/((1343750-0)/100000)

1.20

Gross profit margin

Analyze the firm's current financial position from both cross-sectional and a
time-series viewpoint. Break your analysis in to evaluations of the firm's (a)
Liquidity, (b) activity, (c) debt, (d) profitability and (e) market.

Summarize the firm's overall financial position on the basis of your findings
in part b.

IBC

Ratio

19X1

19X2

Liquidity:
Net working capital

=115852-79150

36702

=116540-84100

32440

Current Ratio

=115852/79150

1.46

=116540/84100

1.39

=(10900+5877+32975)/79150

0.63

=(12500+7425+30950)/84100

0.60

=1025125/32975

31.09

=1075400/30950

34.75

=360/31.09

11.58

=360/34.75

10.36

=690300/58950

11.71

=725700/56320

12.89

=360/11.71

30.74

=360/12.89

27.93

=11.58+30.74

42.32

=10.36+27.93

38.29

=1025125/652952

1.57

=1075400/668240

1.61

Debt ratio

=79150/652952

0.12

=84100/668240

0.13

Debt / Equity ratio

=79150/302752

0.26

=84100/326240

0.26

=40100/17375

2.31

=46750/14620

3.20

=(1025125+350-690300)/1025125

32.7%

=(1075400+1200-725700)/1075400

32.6%

=12525/1025125

1.22%

=12705/1075400

1.18%

=12525/652952

1.92%

=12705/668240

1.90%

=(12525-0)/302752

4.14%

=(12705-0)/326240

3.89%

Quick Ratio
Activity
Account Receivable Turnover
Average collection period
Inventory turnover
Average age of Inventory - days
Operating cycle
Total Asset Turnover
Leverage

Times interest earned ratio

Profitability
Gross profit margin
Net profit margin
Return on total assets
Return on common equity
Market Value
Earnings per share

=(12525-0)/17100

0.73

=(12705-0)/17100

0.74

Price/Earnings ratio

=9.10/.732

12.43

=9.50/.743

12.79

Book Value per share

=(302752-0)/17100

17.70

=(326240-0)/17100

19.08

Dividend yield

=.365/9.10

0.04

=.3947/9.50

0.04

Dividend payout

=.365/.732

0.50

=.3947/.743

0.53

=6250/17100

0.37

=6750/17100

0.39

Dividend per share

MARTIN MANUFACTURING COMPANY

Industry Avg

Actual
2005

Current Ratio

1.8

1.84

Quick Ratio

0.7

0.78

Inventory turnover

2.5

2.59

37.5 days

36.5 days

65%

67%

3.8

38%

40%

3.50%

3.60%

4%

4%

9.50%

8%

1.1

1.2

Ratio

Average collection period

Debt ratio
Times interest earned ratio
Gross profit margin
Net profit margin
Return on total assets
Return on common equity
Market / book ratio

UFACTURING COMPANY

Analyze the firm's current financial posi

time-series viewpoint. Break your analy
Liquidity, (b) activity, (c) debt, (d) profit

Actual 2006
=72000/69000

1.04

=(500+1000+25000)/69000

0.38

=106,000/45500

2.33

=360/(160000/25000)

56.25

=69000/150000

46%

=17000/6100

2.79

=54000/160000

34%

=6540/160000

4.1%

=6540/150000

4.4%

=(6540-0)/(22950+31500+26550)

8.1%

=25/((22950+31500+26550-0)/3000)

0.93

Summarize the firm's overall financial p

in part b.

firm's current financial position from both cross-sectional and a

viewpoint. Break your analysis in to evaluations of the firm's (a)
) activity, (c) debt, (d) profitability and (e) market.

the firm's overall financial position on the basis of your findings