THIS ASSIGNMENT IS BASED ON FORM 10-K WALGREENS BOOTS ALLIANCE,INC. FOR 2017.
https://www.sec.gov/Archives/edgar/data/1618921/000161892117000069/wba-2017831x10k.htm#sD544AA1057C23391F01B25BC6265E816
Compute Ratios See specific details below.
Based on formulas given, compute the following ratios in Excelfor two years.
1. Current ratio: current assets/current liabilities
2. Debt ratio: total debt/total assets
3. Gross profit margin
4. Times interest earned: (Earnings before Interest &Taxes)/Interest Expense
5. Accounts receivable (AR) turnover: Net Credit Sales/AverageAR Note: Av
6. Inventory turnover: Sales/Average Inventory Note: Averageinventory = (
7. Return on Sales: Net Income (before interest &taxes)/Sales
8. Asset Turnover: Sales/average total assets
9. Return on Assets: net profit/average total assets
B. Prepare a DuPont Analysis of ROE for two years, includingcomputations of
Return on Sales
Asset Turnover
Return on Assets
Financial Leverage
Return on Equity
C. Briefly evaluate the ratio trends. Indicate on your worksheetwhether each ratio is:
stronger / weaker
quicker /slower
more / less liquid
more / less risk
THIS ASSIGNMENT IS BASED ON FORM 10-K WALGREENS BOOTS ALLIANCE,INC. FOR 2017.
https://www.sec.gov/Archives/edgar/data/1618921/000161892117000069/wba-2017831x10k.htm#sD544AA1057C23391F01B25BC6265E816
Compute Ratios See specific details below.
Based on formulas given, compute the following ratios in Excelfor two years.
1. Current ratio: current assets/current liabilities
2. Debt ratio: total debt/total assets
3. Gross profit margin
4. Times interest earned: (Earnings before Interest &Taxes)/Interest Expense
5. Accounts receivable (AR) turnover: Net Credit Sales/AverageAR Note: Av
6. Inventory turnover: Sales/Average Inventory Note: Averageinventory = (
7. Return on Sales: Net Income (before interest &taxes)/Sales
8. Asset Turnover: Sales/average total assets
9. Return on Assets: net profit/average total assets
B. Prepare a DuPont Analysis of ROE for two years, includingcomputations of
Return on Sales
Asset Turnover
Return on Assets
Financial Leverage
Return on Equity
C. Briefly evaluate the ratio trends. Indicate on your worksheetwhether each ratio is:
stronger / weaker
quicker /slower
more / less liquid
more / less risk
Related questions
Happy Hamburger Company
Below are the balance sheet and income statement for HappyHamburger Company.
Happy Hamburger Company | |||
Balance Sheet as of December 31, 20XX | |||
Assets | Liabilities and Shareholder Equity | ||
Cash | 78,000 | Accounts payable | 136,000 |
Accounts Receivable | 336,500 | Current portion of debt | 82,500 |
Inventories | 225,000 | Other current liabilities | 114,000 |
Total current assets | 639,500 | Total current liabilities | 332,500 |
Net fixed assets | 310,000 | Long-term debt | 252,000 |
Total assets | 949,500 | Total Liabilities | 584,500 |
Common equity | 365,000 | ||
Total Liabilities & Equity | 949,500 | ||
Happy Hamburger Company | |
Income Statement for the year ending December 31,20XX | |
Sales | 1,704,560 |
Cost of goods sold | 1,489,000 |
Selling, general and administrative expenses | 152,000 |
Earnings before interest and taxes (EBIT) | 63,560 |
Interest expense | 26,200 |
Earnings before taxes (EBT) | 37,360 |
Federal and state income taxes (40%) | 14,944 |
Net Income | 22,416 |
Required:
Calculate the following ratios for the company.
Explain whether the company is doing better or worse than theindustry average for each ratio.
Note: Formula must be provided foreach ratio
Happy | Industry | |
Current ratio |
| 1.7 |
Days sales outstanding (based on 365 day year) |
| 36 days |
Inventory turnover |
| 7.3 |
Fixed asset turnover |
| 12.1 |
Total asset turnover |
| 3.00 |
Return on sales |
| 3.20% |
Return on assets |
| 3.60% |
Return on equity |
| 9.00% |
Debt ratio |
| 71% |
I would love some help with finding the below ratios for Nike in 2017 10-K Section 4 â Ratio calculations and analysis http://s1.q4cdn.com/806093406/files/doc_financials/2017/ar/docs/nike-2017-form-10K.pdf
| RATIO | FORMULA | CURRENT YEAR | PREVIOUS YEAR |
| Current Ratio | Current Assets Current Liabilities | ||
| Accounts Receivable Turnover | Net Total Sales Avg. Accounts Rec. | ||
| Inventory Turnover | Cost of Goods Sold Average Inventory | ||
| Gross Profit Margin | Gross Profit Net sales | ||
| Net Profit Margin | Net Income Net Sales | ||
| Return on Total Assets | Net Income Avg. Total Assets | ||
| Return on Stockholdersâ Equity | Net Income Avg. Stockholdersâ Eq. | ||
| Earnings Per Share | (given on annual report) | ||
| Market Price Per Share at Year End | (available at Yahoo.com and other websites) | ||
| Price/Earnings Ratio | Year End Market Price Earnings Per Share | ||
| Debt Ratio | Total Liabilities Total Assets | ||
| Equity Ratio | Total Stockholdersâ Eq. Total Assets | ||
| Times Interest Earned | Income before Int. + Tax Interest Expense |
