A B C D E F G H I J

1 FINANCIAL ANALYSIS MODEL

2 Note: Enter data in Blue-coded cells; Black cells are computer generated
3 ANALYST'S NAME Dr. Glenn L. Stevens
4 NAME OF COMPANY Sample Firm
5
FIRST CALENDAR YEAR OF
6
DATA 1996
7
8 NUMBER OF YEARS OF DATA 3
9
10
11
12 INCOME STATEMENT 1996 1997 1998
13 Sales Revenue $1,500 $1,550 $1,700 $0 $0
14 Less: Cost of Goods Sold $1,000 $1,030 $1,040 $0 $0
15 Gross Profits $500 $520 $660 =IF($B$8>4,F13-F14," ")
16 Less: Operating Expenses:
17 Selling Expense $140 $150 $155 $0 $0
18 General / Admin. Exp. $260 $270 $275 $0 $0
19 Lease Expense $5 $0 $2 $0 $0
20 Depreciation Expense $10 $11 $12 $0 $0
21 Total Operating Expenses $415 $431 $444 =IF($B$8>4,SUM(F17:F20)," ")
22 Operating Profits $85 $89 $216 =IF($B$8>4,F15-F21," ")
23 Less: Interest Expense $23 $29 $30 $0 $0
24 Net Profits Before Taxes $62 $60 $186 =IF($B$8>4,F22-F23," ")
25 Less: Taxes $10 $12 $15 $0 $0
26 Net Profit After Taxes $52 $48 $171 =IF($B$8>4,F24-F25," ")
27 Less: Pref. Stock Divds. $1 $0 $0 $0 $0
Earnings Available for Common
28
Stockholders $51 $48 $171 IF($B$8>4,F26-F27," ")
29
30
31 BALANCE SHEET
32 Current Assets:
33 Cash $31 $12 $18 $0 $0
34 Marketable Securities $82 $66 $68 $0 $0
35 Accounts Receivable $104 $152 $160 $0 $0
36 Inventories $145 $191 $200 $0 $0
37 Total Current Assets $362 $421 $446 =IF($B$8>4,SUM(F33:F36)," ")
38 Gross Fixed Assets (at cost):
39 Land & Buildings $180 $195 $200 $0 $0
40 Machinery and Equipment $0 $0 $0 $0 $0
41 Furniture & Fixtures $0 $0 $0 $0 $0
42 Vehicles $0 $0 $0 $0 $0
43 Other (Inc. Fin. Leases) $0 $0 $0 $0 $0
44 Total Gross Fixed Assets $180 $195 $200 =IF($B$8>4,SUM(F39:F43)," ")
45 Less: Accumulated Depreciation $52 $63 $65 $0 $0
46 Net Fixed Assets $128 $132 $135 =IF($B$8>4,F44-F45," ")
47 Other Assets $0 $0 $0 $0 $0
48 Total Assets $490 $553 $581 =IF($B$8>4,F37+F46," ")
49
50 Current Liabilities: 1996 1997 1998 =IF($B$8>4,F37+F46," ")
51 Accounts Payable $126 $136 $150 $0 $0
52 Notes Payable $190 $200 $140 $0 $0
53 Accruals $25 $27 $28 $0 $0
54 Taxes Payable $0 $0 $0 $0 $0
55 Other Current Liabilities $0 $0 $0 $0 $0
56 Total Current Liabilities $341 $363 $318 =IF($B$8>4,SUM(F51:F55)," ")
57 L / T Debt (Inc. Financial Leases) $40 $38 $13 $0 $0
58 Total Liabilities $381 $401 $331 =IF($B$8>4,F56+F57," ")
 A B C D E F G H I J
59 Preferred Stock $0 $0 $0 $0 $0
60 Common Stock $20 $20 $20 $0 $0
61 Paid-In Capital In Excess of Par $30 $30 $30 $0 $0
62 Retained Earnings $59 $102 $200 $0 $0
63 Total Stockholders' Equity $109 $152 $250 =IF($B$8>4,SUM(F59:F62)," ")
64 Total Liabs. & Stockhldrs' Equity $490 $553 $581 =IF($B$8>4,F58+F63," ")
65 Reconciliation TA & TL/SE $0 $0 $0 =IF($B$8>4,F64-F48," ")
66 Number of Common Shares 500 500 500 0 0
67 End-of-Year Stock Price $3.00 $5.00 $5.50 $0.00 $0.00
68
69 RATIO ANALYSIS
70 Current Ratio 1.06 1.16 1.40 =IF($B$8>4,F37/F56," ")
71 Quick Ratio 0.64 0.63 0.77 =IF($B$8>4,(F37-F36)/F56," ")
72
73 Inventory Turnover 6.90 5.39 5.20 =IF($B$8>4,F14/F36," ")
74 Average Collection Period 24.96 35.30 33.88 =IF($B$8>4,F35/(F13/360)," ")
75 Fixed Asset Turnover 11.72 11.74 12.59 =IF($B$8>4,F13/F46," ")
76 Total Asset Turnover 3.06 2.80 2.93 =IF($B$8>4,F13/F48," ")
77
78 Debt Ratio 0.78 0.73 0.57 =IF($B$8>4,F58/F48," ")
79 Debt-to-Equity 0.37 0.25 0.05 =IF($B$8>4,F57/F63," ")
80 Times Interest Earned 3.70 3.07 7.20 =IF($B$8>4,F22/F23," ")
81
82 Gross Profit Margin 33.33% 33.55% 38.82% =IF($B$8>4,F15/F13," ")
83 Operating Profit Margin 5.67% 5.74% 12.71% =IF($B$8>4,F22/F13," ")
84 Net Profit Margin 3.47% 3.10% 10.06% =IF($B$8>4,F26/F13," ")
85
86 Return on Total Assets (ROA) 10.61% 8.68% 29.43% =IF($B$8>4,F26/F48," ")
87 Return on Equity (ROE) 47.71% 31.58% 68.40% =IF($B$8>4,F26/F63," ")
88
89 Earnings Per Share $0.10 $0.10 $0.34 =IF($B$8>4,F28/F66," ")
90
91 Price/Earnings Ratio 29.41 52.08 16.08 =IF(AND(F67>0,F89>0),F67/F89," ")
92
93 DUPONT ANALYSIS
94 Net Profit AT/Sales 3.47% 3.10% 10.06% =IF($B$8>4,F26/F13," ")
95 Sales/Total Assets 306.12% 280.29% 292.60% =IF($B$8>4,F13/F48," ")
96 ROA 10.61% 8.68% 29.43% =IF($B$8>4,F94*F95," ")
97 Net Profit AT/Total Assets 10.61% 8.68% 29.43% =IF($B$8>4,F26/F48," ")
98 Total Assets/Stockhldrs. Equity 449.54% 363.82% 232.40% =IF($B$8>4,F48/F63," ")
99 ROE 47.71% 31.58% 68.40% =IF($B$8>4,F97*F98," ")
100
101
102
103
104 STATEMENT OF CASH FLOWS
CASH FLOW FROM
105
OPERATING ACTIVITIES 1996 1997 1998
106 Net Profit After Taxes $48 $171
107 Depreciation $11 $12
108 Decrease in Accts. Receiv. ($48) ($8)
109 Decrease in Inventories ($46) ($9)
110 Decrease in Other Assets $0 $0
111 Increase in Accounts Pay. $10 $14
112 Increase in Accruals $2 $1
113 Increase in Taxes Payable $0 $0
114 Increase in Other Cur. Lia. $0 $0
115 Cash Flow from Oper. Act. ($23) $181
116
CASH FLOW FROM
117
INVESTMENT ACTIVITIES
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118 Increase in Gross Fixed Assets ($15) ($5)
119 Cash Flow from Investments ($15) ($5)
120
CASH FLOW FROM FINANCING
121
ACTIVITIES
122 Increase in Notes Payable $10 ($60)
123 Increase in Long-Term Debt ($2) ($25)
124 Changes in Stockholders' Equity $0 $0
125 Preferred Dividends Paid $0 $0
126 Common Dividends Paid (-) ($5)
Cash Flow from Financing
127
Activities $3 ($85)
128
129 Net Incr. in Cash / Mark. Securities ($35) $91