Queston: How did your view of the company's condition change once you had prepared and analyzed your statement of operating cash flows? How helpful is this analysis to understanding the company's stock price performance?
| |
|
1998 |
2000 |
2002 |
2004 |
2006 |
| 1 |
Net Profit margin |
3.75% |
3.37% |
3.45% |
2.30% |
0.59% |
| 2 |
Return on shareholder's equity |
16.39% |
13.71% |
14.38% |
10.64% |
3.70% |
| 3 |
Return on assets for each year |
7.75% |
5.98% |
5.91% |
3.61% |
0.91% |
| 4 |
Accounts receivable collection period |
75 |
102 |
111 |
108 |
107 |
| 5 |
Inventory turnover |
3.82 |
3.65 |
3.68 |
3.12 |
2.85 |
| 6 |
Total assets turnover ratio |
2.07 |
1.78 |
1.71 |
1.57 |
1.55 |
| 7 |
Current ratio |
2.61 |
2.06 |
1.71 |
1.75 |
1.58 |
| 8 |
Quick (acid test) ratio |
1.47 |
1.28 |
1.11 |
1.07 |
0.90 |
| 9 |
Total liabilities/owner's equity |
1.11 |
1.29 |
1.43 |
1.95 |
3.05 |
| 10 |
Long term debt/capitalization |
0.27 |
0.21 |
0.11 |
0.30 |
0.43 |
1. net profit margin = net income after taxes / revenue
2. return on shareholder’s equity = net income / shareholder’s equity
3. return on assets for each year = net income / total assets
4. accounts receivable collection period (days’ receivables) = accounts receivable/sales/365
5. inventory turnover = cost of goods sold / inventory
6. total assets turnover ratio = sales / total assets
7. current ratio = current assets / current liabilities
8. quick (acid-test) ratio = monetary current assets / current liabilities
9. total liabilities/owner’s equity
10 long-term debt/capitalization (capitalization is sum of long-term debt & owners’ equity)