Company - ABC

Income Statement (Consolidated)

($ in Million Except Per Share Amounts) Dec-18 Dec-19 Dec-20 Dec-21

Net sales 15,195 15,454 15,544 15,693
Cost of sales 6,072 6,174 6,313 6,368
Gross profit 9,123 9,280 9,231 9,325

Selling, general and administrative expenses 5,143 5,400 5,389 5,575

Other (income) expense, net 25 173 148 196
EBIT 3,955 3,707 3,694 3,554
Non-service related postretirement costs 118 118 87 108
Interest expense, net 99 102 143 145

EBT 3,738 3,487 3,464 3,301

Provision for income taxes 1,152 1,313 906 774
Net income including noncontrolling interests 2,586 2,174 2,558 2,527
Less: Net income attributable to noncontrolling intere 145 150 158 160
Net income attributable to ABC Company 2,441 2,024 2,400 2,367
Earnings per common share, basic 2.74 2.30 2.76 2.76
Earnings per common share, diluted 2.72 2.28 2.75 2.75

Basic Weighted Average Shares 891.8 881.1 870.6 859.1

Diluted Weighted Average Shares 898.4 887.1 873.0 861.1

EBITDA

Vertical Analysis Dec-18 Dec-19 Dec-20 Dec-21

Net sales
Cost of sales
Gross profit Margin

Selling, general and administrative expenses

Other (income) expense, net
Operating profit Margin (EBIT Margin)
Non-service related postretirement costs
Interest expense, net

Income before income taxes (EBT Margin)

Provision for income taxes
Net income Margin including noncontrolling interests
Less: Net income attributable to noncontrolling interests (% of Net Income)
Net income Margin

Effective Tax Rates 30.8% 37.7% 26.2% 23.4%

Horizontal Analysis Dec-18 Dec-19 Dec-20 Dec-21
Net sales
Cost of sales
Gross profit

Selling, general and administrative expenses

Other (income) expense, net
Operating profit
Interest expense, net

Income before income taxes

Provision for income taxes
Net income including noncontrolling interests
Less: Net income attributable to noncontrolling interests
Net income attributable to ABC Company

Operating Profitability
Gross Profit Margin
Operating Profit Margin
Net Profit Margin

Business Risk Dec-18 Dec-19 Dec-20 Dec-21

Sales (% growth)
Operating Profit (EBIT) (% growth)
Net Income (% growth)

Total Leverage
Operating Leverage
Financial Leverage
Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-27
16,471
6,454
10,017

6,019
113
3,885
74
164

3,647
787
2,860
165
2,695
3.15
3.14

856.8
859.3

Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-27

21.6%
Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-27

Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-27

Company - ABC
Consolidated Balance Sheets

Dec-18 Dec-19 Dec-20 Dec-21

Assets
Current Assets
Cash and cash equivalents 1,315 1,535 726 883
Receivables 1,411 1,480 1,400 1,440
Inventories 1,171 1,221 1,250 1,400
Other current assets 441 403 417 456
Total current assets 4,338 4,639 3,793 4,179

Property, plant and equipment, net 5,840 6,072 5,881 5,750

Goodwill, net 2,107 2,218 2,530 3,508
Other intangible assets, net 1,313 1,341 1,637 2,667
Deferred income taxes 301 188 152 177
Other assets 224 218 168 753
Total assets 14,123 14,676 14,161 17,034

Liabilities and Shareholders' Equity

Current Liabilities
Notes and loans payable 13 11 12 260
Current portion of long-term debt 150 54
Accounts payable 1,124 1,212 1,222 1,237
Accrued income taxes 441 354 411 370
Other accruals 1,727 1,831 1,696 1,917
Total current liabilities 3,305 3,408 3,491 3,838

Revolver

Long-term debt 6,520 6,566 6,354 7,333

Deferred income taxes 246 204 235 507
Other liabilities 2,035 2,255 2,034 2,598
Total liabilities 12,106 12,433 12,114 14,276
Commitments and contingent liabilities - - - -
Shareholders' Equity
Common stock 1,466 1,466 1,466 1,466
Additional paid-in capital 1,691 1,984 2,204 2,488
Retained earnings 21,315 22,036 23,534 24,136
Accumulated other comprehensive income (5,677) (5,885) (6,363) (6,443)
Unearned compensation (7) (5) (3) (2)
Treasury stock, at cost (17,031) (17,656) (19,090) (19,328)
Total shareholders' equity 1,757 1,940 1,748 2,317
Noncontrolling interests 260 303 299 441
Total shareholders' equity 2,017 2,243 2,047 2,758
Total liabilities and shareholders'
equity 14,123 14,676 14,161 17,034
Check - - - -

Sales
COGS
Purchases

Solvency Ratios
Current ratio
Quick ratio
Cash ratio

Turnover Ratios
Receivables turnover
Inventory Turnover
Payables turnover

Days 365
Average receivables collection period
Average inventory processing period
Average Payable Days (payment period)
Cash Collection Cycle

Operating Efficiency
Total asset turnover (Sales / Average Assets)
Net fixed asset turnover
Equity turnover

Return on Total Assets

Return on Equity (Net Income / Total Equity)
Return on Owner's Equity
Return on Capital Employed

EBIT 3,694.0 3,554.0

Depreciation & Amortization 511.0 519.0
Interest Expense 143.0 145.0

Long Term Debt Maturities

Net Cash Interest
Lease 188.0 193.0

Financial Risk Ratios

Debt to equity ratio
Debt ratio
Interest coverage ratio
DSCR
Dividend Payout Ratios

Total Dividends Paid/ Declared - DPS

Net Income/ EPS
Dividend Payout Ratio #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Retention Ratio #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Sustainable Growth
 Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-27

888
1,264
1,673
513
4,338

5,716
3,824
2,894
291
857
17,920

258
9
1,393
403
2,341
4,404

7,334
426
2,655
14,819
-

1,466
2,969
25,390
(6,770)
(1)
(20,311)
2,743
358
3,101

17,920 -
 - - - - - -

3,885.0
539.0
164.0

link to Balance sheet

link to CF
167.0 need to Asssum
#DIV/0!
#DIV/0!
link to Balance sheet

need to Asssum
Company - ABC
Consolidated Cash Flows

Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-27
Operating Activities
Net income including noncontrolling interests $ 2,558 $ 2,527 $ 2,860
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation and amortization 511 519 539
Restructuring and termination benefits, net of cash -7 18 -71
Stock-based compensation expense 109 100 107
Loss on early extinguishment of debt 23
Charge for U.S. tax reform 80
Deferred income taxes 27 17 -120
Voluntary benefit plan contributions (67) (113)
Cash effects of changes in:
Receivables (79) 19 138
Inventories (58) (77) (251)
Accounts payable, accrued income tax & other accruals 18 36 520
Other non-current assets and liabilities (36) 87 (26)
Net cash provided by operations 0 3,056 3,133 3,719

Investing Activities
Capital expenditures (436) (335) (410)
Purchases of marketable securities and investments (169) (184) (143)
Proceeds from sale of marketable securities and investments 156 131 124
Payment for acquisitions, net of cash acquired (728) (1,711) (353)
Other 7 3
Net cash used in investing activities 0 (1,170) (2,099) (779)

Cash Flow for Financing Activities 0 1,886 1,034 2,940

Financing Activities
Revolver
Short-term borrowing/(repayment) less than 90 days - net 546 294 497
Principal payments on debt (725) (1,441) (1,061)
Proceeds from issuance of debt 2,595
Dividends paid (1,591) (1,614) (1,654)
Purchases of treasury shares (1,238) (1,202) (1,476)
Proceeds from exercise of stock options and excess tax benefits 329 498 874
Purchases of non-controlling interests in subsidiaries -99
Net cash used in financing activities 0 (2,679) (870) (2,919)

Effect of exchange rate changes on Cash and cash equivalents (16) (7) (16)
Net increase (decrease) in Cash and cash equival 0 (809) 157 5

Cash and cash equivalents at beginning of year 1,535 726 883

Cash and cash equivalents at end of year $ - $ 726 $ 883 $ 888

Supplemental Cash Flow Information

Income taxes paid $ 847 $ 803 $ 845

Interest paid 194 185 188