Interpreting Financial Results

| January 22, 2016

Review the assigned company’s financial statements from the past three years.

Calculate the financial ratios for the assigned company’s financial statements, and then interpret those results against company

historical data as well as industry benchmarks:

Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011).
Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.

Write a 500 word summary of your analysis.

You would be interested in the Median for years 2011 and 2012-Attached below

SIC: 01
Line of
Business: Agricultural Production – Crops
Asset
Range: All Asset Ranges within SIC Group
Industry
Quartiles 2010 2011 2012 2013 2014
Statement
Sampling Samples: 106 Samples: 113 Samples: 98 Samples: 90 Samples: 96
Solvency Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower
Quick Ratio 1.90 0.90 0.30 1.90 0.70 0.30 3.20 0.90 0.20 1.70 0.70 0.20 2.10 0.80 0.20
Current
Ratio 5.40 2.00 1.30 5.20 1.70 1.20 4.10 1.40 1.00 3.80 1.70 0.90 5.20 1.60 0.90
Current
Liabilities /
Net Worth
(%)
8.10 33.60 82.90 10.00 33.80 103.90 10.50 41.00 153.40 11.80 45.50 108.60 7.90 40.20 103.60
Current
Liabilities /
Inventory
(%)
63.50 142.70 471.00 67.50 151.20 478.20 58.00 183.80 739.70 68.80 194.90 844.20 99.00 189.50 560.60
Total
Liabilities /
Net Worth
(%)
18.20 56.70 176.50 18.00 66.80 142.30 23.00 74.80 244.90 19.40 88.90 171.40 18.10 68.50 160.90
Fixed Assets
/ Net Worth
(%)
44.40 70.10 108.90 42.20 62.10 106.30 38.00 56.70 104.30 34.60 60.80 105.80 35.20 57.80 112.80
Efficiency Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower
Collection
Period
(days)
18.30 29.90 44.90 14.80 29.20 48.00 11.90 29.90 49.50 11.00 25.90 34.00 16.40 28.50 45.60
Sales /
Inventory
(times)
29.70 11.10 4.20 30.40 9.40 3.50 44.30 13.80 5.40 35.70 14.20 4.30 37.00 14.40 4.50
Assets /
Sales (%) 37.80 72.10 137.50 42.30 64.20 114.50 32.80 59.70 111.70 31.00 63.10 116.50 32.20 66.80 135.90
Sales / Net
Working
Capital
(times)
12.60 5.80 2.70 12.60 5.70 3.20 15.70 5.50 4.20 21.50 6.30 3.70 15.90 7.00 3.20
Accounts
Payable /
Sales (%)
1.60 3.90 7.00 2.40 4.20 7.90 2.10 4.60 6.60 1.70 4.10 7.30 2.50 5.20 9.70
Profitability Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower
Return on
Sales (%) 8.50 4.10 0.90 10.00 3.70 0.60 6.40 2.70 0.20 10.00 3.20 0.40 8.40 2.30 0.00
Return on
Assets (%) 12.30 4.70 1.20 15.70 5.90 1.00 12.60 5.40 0.00 16.40 5.60 0.40 16.90 4.60 -0.10
Return on
Net Worth
(%)
21.00 7.80 2.60 32.00 13.30 3.00 33.30 10.30 1.40 36.10 14.60 4.50 33.20 13.70 1.50
Median Variance 2010 2011 2012 2013 2014
Solvency Median 2011 2012 2013 2014 Median 2010 2012 2013 2014 Median 2010 2011 2013 2014 Median 2010 2011 2012 2014 Median 2010 2011

2012 2013
Quick Ratio 0.90 22.2 0.0 100.0 100.0 0.70 -22.2 -28.6 100.0 100.0 0.90 0.0 28.6 100.0 100.0 – -100.0 -100.0 -100.0 0.0 – -100.0 -100.0

-100.0 0.0
Current Ratio 2.00 15.0 30.0 100.0 100.0 1.70 -15.0 17.6 100.0 100.0 1.40 -30.0 -17.6 100.0 100.0 – -100.0 -100.0 -100.0 0.0 – -100.0

-100.0 -100.0 0.0
Current
Liabilities / Net
Worth (%)
33.60 -0.2 -7.4 33.6 33.6 33.80 0.2 -7.2 33.8 33.8 41.00 7.4 7.2 41 41 – -33.6 -33.8 -41 – -33.6 -33.8 -41
Current
Liabilities /
Inventory (%)
142.70 -8.5 -41.1 142.7 142.7 151.20 8.5 -32.6 151.2 151.2 183.80 41.1 32.6 183.8 183.8 – -142.7 -151.2 -183.8 – -142.7 -151.2 -183.8
Total Liabilities /
Net Worth (%) 56.70 -10.1 -18.1 56.7 56.7 66.80 10.1 -8 66.8 66.8 74.80 18.1 8 74.8 74.8 – -56.7 -66.8 -74.8 – -56.7 -66.8 -74.8
Fixed Assets /
Net Worth (%) 70.10 8 13.4 70.1 70.1 62.10 -8 5.4 62.1 62.1 56.70 -13.4 -5.4 56.7 56.7 – -70.1 -62.1 -56.7 – -70.1 -62.1 -56.7
Efficiency Median 2011 2012 2013 2014 Median 2010 2012 2013 2014 Median 2010 2011 2013 2014 Median 2010 2011 2012 2014 Median 2010 2011

2012 2013
Collection Period
(days) 29.90 -2.3 0.0 -100.0 -100.0 29.20 2.3 2.4 -100.0 -100.0 29.90 0.0 -2.4 -100.0 -100.0 – 100.0 100.0 100.0 0.0 – 100.0 100.0

100.0 0.0
Sales / Inventory
(times) 11.10 15.3 -24.3 100.0 100.0 9.40 -15.3 -46.8 100.0 100.0 13.80 24.3 46.8 100.0 100.0 – -100.0 -100.0 -100.0 0.0 – -100.0 –

100.0 -100.0 0.0
1/2
Assets / Sales
(%) 72.10 7.9 12.4 72.1 72.1 64.20 -7.9 4.5 64.2 64.2 59.70 -12.4 -4.5 59.7 59.7 – -72.1 -64.2 -59.7 – -72.1 -64.2 -59.7
Sales / Net
Working Capital
(times)
5.80 1.7 5.2 100.0 100.0 5.70 -1.7 3.5 100.0 100.0 5.50 -5.2 -3.5 100.0 100.0 – -100.0 -100.0 -100.0 0.0 – -100.0 -100.0 -100.0 0.0
Accounts
Payable / Sales
(%)
3.90 -0.3 -0.7 3.9 3.9 4.20 0.3 -0.4 4.2 4.2 4.60 0.7 0.4 4.6 4.6 – -3.9 -4.2 -4.6 – -3.9 -4.2 -4.6
Profitability Median 2011 2012 2013 2014 Median 2010 2012 2013 2014 Median 2010 2011 2013 2014 Median 2010 2011 2012 2014 Median 2010

2011 2012 2013
Return on Sales
(%) 4.10 0.4 1.4 4.1 4.1 3.70 -0.4 1 3.7 3.7 2.70 -1.4 -1 2.7 2.7 – -4.1 -3.7 -2.7 – -4.1 -3.7 -2.7
Return on Assets
(%) 4.70 -1.2 -0.7 4.7 4.7 5.90 1.2 0.5 5.9 5.9 5.40 0.7 -0.5 5.4 5.4 – -4.7 -5.9 -5.4 – -4.7 -5.9 -5.4
Return on Net
Worth (%) 7.80 -5.5 -2.5 7.8 7.8 13.30 5.5 3 13.3 13.3 10.30 2.5 -3 10.3 10.3 – -7.8 -13.3 -10.3 – -7.8 -13.3 -10.3
Norms Data 2010 2011 2012 2013 2014
Cash 649873 11.00% 667312 10.00% 642434 10.00% 302960 7.00% 550508 9.90%
Accounts Receivable 756216 12.80% 807447 12.10% 835164 13.00% 588609 13.60% 722890 13.00%
Notes Receivable 106343 1.80% 46712 0.70% 89941 1.40% 51936 1.20% 61168 1.10%
Other Current 484450 8.20% 640619 9.60% 610310 9.50% 476080 11.00% 567190 10.20%
Total Current 2770822 46.90% 3156384 47.30% 3302108 51.40% 1982226 45.80% 2724738 49.00%
Fixed Assets 2599492 44.00% 2896133 43.40% 2698221 42.00% 1882682 43.50% 2352172 42.30%
Other Current Assets 537622 9.10% 620600 9.30% 424006 6.60% 463096 10.70% 483780 8.70%
Total Assets 5907936 100.00% 6673117 100.00% 6424335 100.00% 4328004 100.00% 5560690 100.00%
Accounts Payable 384016 6.50% 313636 4.70% 584614 9.10% 575625 13.30% 1384612 24.90%
Bank Loan 29540 0.50% 26692 0.40% 51395 0.80% 0.00% 33364 0.60%
Notes Payable 189054 3.20% 246905 3.70% 295519 4.60% 199088 4.60% 283595 5.10%
Other Current 974809 16.50% 1101066 16.50% 1355535 21.10% 1934618 44.70% 2563478 46.10%
Total Current 1577419 26.70% 1688299 25.30% 2287063 35.60% 2709331 62.60% 4265049 76.70%
Other Long Term 1205219 20.40% 1347969 20.20% 1207775 18.80% 839632 19.40% 1423537 25.60%
Deferred Credits 17724 0.30% 0.00% 19273 0.30% 0.00% 0.00%
Net Worth 3107574 52.60% 3636849 54.50% 2910224 45.30% 779041 18.00% -127896 -2.30%
Total Liabilities & Net Worth 5907936 100.00% 6673117 100.00% 6424335 100.00% 4328004 100.00% 5560690 100.00%
Net Sales 7845865 100.00% 9255363 100.00% 10006752 100.00% 7249588 100.00% 8812504 100.00%
Gross Profit 2596981 33.10% 3285654 35.50% 3552397 35.50% 2638850 36.40% 2837626 32.20%
Net Profit After Tax 407985 5.20% 416491 4.50% 490331 4.90% 289984 4.00% 484688 5.50%
Working Capital 1193403 0.00% 1468085 0.00% 1015045 0.00% -727105 0.00% -1540311 0.00%
2/2
Annual Finnancials
All amounts in millions of US Dollars except per share amounts.
Income Statement 12-Dec 11-Dec 10-Dec
Revenue 11,462.30 13,055.50 12,122.90
Cost of Goods Sold 8,562.30 10,037.90 9,117.00
Gross Profit 2,900.00 3,017.60 3,005.90
Gross Profit Margin 25.30% 23.10% 24.80%
SG&A Expense 2,467.60 2,572.60 2,534.20
Depreciation & Amortization 6.3 10.5 11.3
Operating Income 427.8 -1,801.60 399.7
Operating Margin 3.70% -13.80% 3.30%
Nonoperating Income 0.7 1.9 -0.2
Nonoperating Expenses -164.6 -253 -248.3
Income Before Taxes 263.9 -2,052.60 151.2
Income Taxes 146.5 -456.8 73.5
Net Income After Taxes 117.4 -1,595.80 77.7
Continuing Operations 117.4 -1,595.80 77.7
Discontinued Operations 43.6 3.6 5
Total Operations 158.6 -1,575.60 91.5
Total Net Income 158.6 -1,575.60 91.5
Net Profit Margin 1.40% -12.10% 0.80%
Diluted EPS from Total Net Income 0.85 -8.59 0.5
Balance Sheet 12-Dec 11-Dec 10-Dec
Assets
Current Assets
Cash 79 114.9 92
Net Receivables 881.4 971.1 962.4
Inventories 407.9 452.2 425.6
Other Current Assets 834.5 178.3 336.3
Total Current Assets 2,202.80 1,716.30 1,816.20
Net Fixed Assets 1,873.30 2,114.40 2,113.40
Other Noncurrent Assets 1,611.00 1,923.70 4,027.10
Total Assets 5,687.10 5,754.40 7,956.70
Liabilities and Shareholders’ Equity 12-Dec 11-Dec 10-Dec
Current Liabilities
Accounts Payable 667.8 768.9 782.2
Short-Term Debt 25.5 202.5 174.3
Other Current Liabilities 647.6 524.1 484.5
Total Current Liabilities 1,341.00 1,495.50 1,441.00
Long-Term Debt 3,077.30 3,563.40 3,893.30
Other Noncurrent Liabilities 911.7 798.8 1,122.90
Total Liabilities 5,329.90 5,857.80 6,457.10

Shareholder’s Equity
Preferred Stock Equity 0 0 0
Common Stock Equity 357.2 -103.4 1,499.50
Total Equity 357.2 -103.4 1,499.50
Shares Outstanding (thou.) 185,563.50 183,745.80 182,255.30
Cash Flow Statement 12-Dec 11-Dec 10-Dec
Net Operating Cash Flow 441 449 534
Net Investing Cash Flow -174.2 -128.3 -269.5
Net Financing Cash Flow -302.5 -293.6 -217.7
Net Change in Cash -36.7 22.8 46.8
Depreciation & Amortization 6.3 10.5 11.3
Capital Expenditures -228.1 -325.5 -302
Cash Dividends Paid 0 6.8 8

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