Professional Documents
Culture Documents
August 9, 2007
Graeme Rankine
Commercial airline
Commercial banking (items fitted into the same categories as the non-financial firms)
Computer software
Integrated oil and gas
IT service provider
Liquor producer and distributor
Mobile phone service provider
Pharmaceutical preparations
Retail grocery stores
Semiconductor manufacturer
Assignment
Using the financial statement data provided in Exhibits 2, 3, and 4, match the companies with their
industry.
Copyright 2007 Thunderbird School of Global Management. All rights reserved. This case was prepared by Professor
Graeme Rankine for the purpose of classroom discussion only, and not to indicate either effective or ineffective management.
Exhibit 1
LIQUIDITY RATIOS:
Cash & Marketable Securities To Total Assets
Acid Test Ratio
Current ratio
1.
=
=
=
ASSET MANAGEMENT
Days Receivables
Days Inventory
Asset Turnover
=
=
=
FINANCIAL LEVERAGE
Long-term Debt to Total Assets
Coverage Ratio
=
=
=
=
=
=
=
PROFITABILITY
Gross Margin Ratio
Return on Sales
Return on Assets (1)
Return on Assets (2)
Return on Equity
DUPONT ANALYSIS
Return on Equity
TB0069
TB0069
1
100.00
79.32
20.68
0.00
19.38
1.30
0.00
0.64
1.67
0.27
(0.09)
0.04
0.00
0.10
0.41
0.35
0.76
2
100.00
11.11
88.89
0.00
20.17
68.72
1.18
(19.23)
18.33
29.98
9.98
0.00
0.00
0.00
20.00
0.00
20.00
3
100.00
36.62
63.38
0.00
39.91
23.47
0.00
1.98
0.99
24.47
7.72
0.00
0.00
0.00
16.75
(1.85)
14.90
4
100.00
49.78
50.22
0.32
25.13
24.77
3.11
(5.09)
0.18
16.39
6.53
0.00
0.00
0.00
9.86
0.00
9.86
5
100.00
52.77
47.23
0.00
14.54
32.69
4.50
1.84
0.00
30.04
4.18
0.07
0.21
(0.21)
25.78
0.21
25.99
NET SALES
COST OF GOODS
GROSS PROFIT
R & D EXPENDITURES
SELL GEN & ADMIN EXP
INC BEF DEP & AMORT
DEPRECIATION & AMORT
NON-OPERATING INC
INTEREST EXPENSE
INCOME BEFORE TAX
PROV FOR INC TAXES
MINORITY INT (INC)
INVEST GAINS/LOSSES
OTHER INCOME
NET INC BEF EX ITEMS
EX ITEMS & DISC OPS
NET INCOME
Exhibit 2
6
100.00
43.81
56.19
14.61
16.01
25.58
0.00
2.15
0.09
27.64
8.12
0.00
0.00
0.00
19.51
0.00
19.51
7
100.00
23.20
76.80
20.01
35.77
21.03
0.00
0.37
0.87
20.52
5.96
0.00
0.00
0.00
14.57
(0.05)
14.52
8
100.00
17.03
82.97
17.18
33.02
32.77
0.00
5.94
0.00
38.71
11.57
0.00
0.00
0.00
27.14
0.00
27.14
9
100.00
68.43
31.57
0.00
15.56
16.01
4.26
(1.61)
0.90
9.24
3.40
0.00
0.00
0.00
5.84
0.00
5.84
10
100.00
58.46
41.54
0.00
57.69
(16.14)
16.72
22.45
2.37
(12.78)
8.17
0.99
0.00
0.00
(21.94)
(3.83)
(25.78)
TB0069
2.88
15.26
4.57
0.38
6.70
0.01
5.34
35.15
0.18
1.33
1.31
25.09
6.93
6.83
76.82
0.31
2.28
1.81
63.20
(44.84)
0.00
0.42
22.87
100.00
NOTES PAYABLE
ACCOUNTS PAYABLE
CUR LONG TERM DEBT
CUR PORT CAP LEASES
ACCRUED EXPENSES
INCOME TAXES
OTHER CURRENT LIAB
TOTAL CURRENT LIAB
MORTGAGES
DEFERRED CHARGES/INC
CONVERTIBLE DEBT
LONG TERM DEBT
NON-CUR CAP LEASES
OTHER LONG TERM LIAB
TOTAL LIABILITIES
MINORITY INT (LIAB)
PREFERRED STOCK
COMMON STOCK NET
CAPITAL SURPLUS
RETAINED EARNINGS
TREASURY STOCK
OTHER EQUITIES
SHAREHOLDER EQUITY
TOT LIAB & NET WORTH
1
6.01
0.00
10.16
11.78
(0.24)
0.00
12.02
0.00
12.50
40.44
37.33
0.00
37.33
5.29
0.29
3.13
12.98
0.54
100.00
23.36
50.78
0.68
0.00
3.03
0.00
0.00
77.86
0.00
0.00
0.00
8.17
0.00
5.26
91.28
0.00
0.08
3.81
0.00
5.31
0.00
(0.48)
8.72
100.00
2
2.66
20.51
45.93
16.49
0.00
0.00
0.00
0.00
0.00
85.59
0.64
0.00
0.64
0.08
0.00
0.00
4.66
9.03
100.00
3.45
3.38
3.51
0.00
7.32
1.79
0.70
20.16
0.00
5.18
0.00
17.54
0.00
6.17
49.06
0.00
0.00
0.74
1.37
54.55
5.60
(0.11)
50.94
100.00
3
10.47
1.96
12.61
20.12
11.13
3.88
5.10
0.00
6.25
51.41
33.72
15.99
17.73
0.63
0.00
1.66
20.87
7.70
100.00
0.85
11.68
0.26
0.00
2.51
4.04
2.85
22.18
0.00
11.86
0.00
2.74
0.13
8.79
45.69
1.82
0.00
2.51
0.00
78.79
28.07
(0.74)
52.49
100.00
4
14.27
0.00
13.13
4.74
0.73
0.00
4.01
0.00
1.43
33.57
119.29
66.32
52.97
9.45
0.00
0.74
0.00
3.27
100.00
0.00
0.09
0.00
0.00
8.86
5.44
12.55
26.94
0.00
0.00
0.00
0.00
0.00
0.00
26.94
0.24
1.07
1.38
12.93
57.19
0.00
0.25
72.82
100.00
5
35.47
0.00
19.77
0.00
0.00
0.00
0.00
0.00
6.81
62.05
21.80
0.00
21.80
14.83
0.00
0.71
0.61
0.00
100.00
0.44
4.45
0.04
0.00
8.19
3.40
1.26
17.78
0.00
1.26
4.37
(1.16)
0.00
0.74
23.00
0.00
0.00
0.01
13.94
62.90
0.00
0.15
77.00
100.00
6
15.42
12.17
6.64
6.94
0.97
3.54
2.44
0.00
2.69
43.88
90.48
55.62
34.85
8.50
0.00
0.23
9.41
3.13
100.00
2.25
3.13
1.79
0.00
2.30
4.46
11.73
25.65
0.00
1.87
0.00
19.14
0.00
7.39
54.06
0.00
0.00
2.98
14.11
43.22
0.43
(13.94)
45.94
100.00
7
15.99
6.75
11.26
9.07
0.59
5.90
2.58
0.00
3.50
46.56
55.18
21.95
33.23
4.03
0.00
3.02
0.53
12.62
100.00
CASH
MRKTABLE SECURITIES
RECEIVABLES
INVENTORIES
RAW MATERIALS
WORK IN PROGRESS
FINISHED GOODS
NOTES RECEIVABLE
OTHER CURRENT ASSETS
TOTAL CURRENT ASSETS
PROP, PLANT & EQUIP
ACCUMULATED DEP
NET PROP & EQUIP
INVEST & ADV TO SUBS
OTHER NON-CUR ASSETS
DEFERRED CHARGES
INTANGIBLES
DEPOSITS & OTH ASSET
TOTAL ASSETS
Exhibit 3
0.00
2.98
0.00
0.00
3.46
2.93
14.61
23.98
0.00
2.22
0.00
0.00
0.00
5.52
31.71
0.00
0.00
76.62
0.00
(9.99)
0.00
1.66
68.29
100.00
8
3.10
52.44
9.92
1.09
0.31
0.00
0.78
0.00
4.80
71.34
8.75
5.37
3.38
13.91
0.00
3.05
5.20
3.11
100.00
0.00
4.06
2.07
0.07
9.24
1.98
5.06
22.47
2.83
15.45
0.00
8.82
0.50
2.07
52.14
0.00
0.00
6.20
4.70
33.37
1.17
4.76
47.86
100.00
9
11.87
3.17
1.93
1.20
1.20
0.00
0.00
0.00
3.14
21.31
99.65
26.90
72.75
1.56
0.00
0.00
0.16
4.21
100.00
0.02
1.93
1.79
0.01
6.11
0.00
0.93
10.79
0.00
3.41
0.00
9.66
0.08
1.42
25.36
0.62
0.43
3.04
86.45
(36.41)
3.56
24.08
74.02
100.00
10
2.90
0.00
3.60
0.28
0.00
0.00
0.28
0.00
0.31
7.09
11.64
0.00
11.64
16.70
0.05
0.30
61.39
2.83
100.00
TB0069
0.21
0.01
0.02
0.05
0.07
0.07
0.01
2.24
4.43
PROFITABILITY
Gross Margin Ratio
Return on Sales
Return on Assets (1)
Return on Assets (2)
Return on Equity
DUPONT ANALYSIS
Return on Equity =
Return on Sales
* Asset Turnover
* Leverage
1.01
4.05
1.71
0.76
0.15
0.20
0.07
11.53
0.89
0.20
0.01
0.03
0.15
0.09
2,540.75
#DIV/0!
0.07
0.38
16.66
24.18
2.24
0.23
0.89
1.10
FINANCIAL LEVERAGE
Long-term Debt to Total Assets
Long-term Debt to Stockholders'
Equity
Coverage Ratio
ASSET MANAGEMENT
Day's Receivable
Day's Inventory
Asset Turnover
0.06
0.47
1.15
0.22
0.15
0.78
1.98
0.63
0.15
0.11
0.12
0.22
0.43
23.92
0.21
59.22
260.56
0.78
0.12
1.25
2.61
LIQUIDITY RATIOS
Cash & Market Sec to Total Assets
Acid Test Ratio
Current Ratio
Exhibit 4
0.31
0.10
1.63
1.91
0.50
0.10
0.16
0.16
0.31
0.06
134.15
0.03
29.54
21.55
1.63
0.14
1.24
1.51
0.36
0.26
1.01
1.38
0.47
0.26
0.26
0.26
0.36
0.00
#DIV/0!
0.00
71.39
#DIV/0!
1.01
0.35
2.13
2.40
0.19
0.20
0.75
1.30
0.56
0.20
0.15
0.15
0.19
0.04
358.14
0.03
32.25
76.73
0.75
0.28
1.94
2.48
0.20
0.15
0.62
2.18
0.77
0.15
0.09
0.10
0.20
0.46
35.70
0.21
66.25
230.14
0.62
0.23
1.33
1.83
0.23
0.27
0.53
1.49
0.83
0.27
0.15
0.15
0.23
0.00
#DIV/0!
0.00
67.01
40.77
0.53
0.56
3.01
3.26
0.07
0.06
0.59
2.09
0.32
0.06
0.03
0.04
0.07
0.24
18.15
0.11
11.99
10.79
0.59
0.15
0.76
0.95
(0.09)
(0.26)
0.21
1.36
0.42
(0.26)
(0.06)
(0.06)
(0.09)
0.16
(6.49)
0.12
62.12
8.37
0.21
0.03
0.61
0.67
10