DISCUSSION CASE STUDY

1.
3814−3051
- Sales growth rate2015= =25 %
3051
5340−3814
- Sales growth rate2016= 3814
=¿ 40,01%
7475−5340
- Sales growth rate2017= 5340
=¿ 39,98%
10446−7475
- Sales growth rate2018= 7475
=¿ 39,74%

2.
1150−766
- Net income growth2015= =50 %
766
1609−1150
- Net income growth2016= 1150
=39,91%

1943−1609
- Net income growth2017= =20,76 %
1609
2903−1943
- Net income growth2018= =49,4 %
1943

 Projected sales is matching with projected net income

in 2016. In 2017, projected sales is growing faster than
projected income but up to 2018, projected income is
faster than one.

3.
1720
- Current ratio Chem-Med= 593 =2,9׿ > Current ratio Pharmacia=2,8

> Current ratio Industry =2,4

3261
- Current ratio Chem-Med in 2018= 1647 =1,98 times
  The current ratio in 2018 is lower shows that the
company is having difficulty in paying debts compared to
2015.
4.
- TD/TA:
614
+ 2015: 4491
=0.137

857
+ 2016: 6343
=0.135

1212
+ 2017: 8641
=0.14

1664
+ 2018: 11995
=0.139

-the debt to total assets ratio is higher through 4 years period

-
+ TD/TA Median: 0.52%
+ TD/TA Pharmarcia: 0.55%
+ TD/TA Chem/med: 0,137%
 Chem/Med have less debt than orders

5.
3814
Receivables turnover 2015 = 564
=6,76
365
->Days’ sales in receivables 2015 = 6,76 =54
5340
Receivables turnover 2016= 907
=5,887
 365
->Days’ sales in receivables 2016 = 45,887 =62 Receivables
7475
turnover 2017= 1495
=5
365
->Days’ sales in receivables 2017 = 2,55 =73
10466
Receivables turnover 2018= 2351
=4,45
365
-> Days’ sales in receivables 2018 = 1,6 =82
 The period is getting longer
 Days' sales in receivables increase each year shows
the weakness in debt management of Chem-Med
6.

1150
Profit marginChem-Med=3814
=0,3
3814
Asset turnoverChem-Med= 4491 =0.85
TD/TAChem-Med=0,137

0,3∗0.85
ROEChem-Med= =0,295=29,5 %
1−0,137

ROEPharmacia= 29,56%
ROEIndustry = 12,29%
 ROEChem-Med