Big Rock Candy Mining Mountain Co.
Financial Ratios
For the Years 2015 and 2016
Ratio 2016 2015 Comparison
Liquidity Ratio
Curent Ratio 2.75x 2.86x Bad
Quick Ratio 1.51x 1.49x Good
Efficiency Ratio
Inventory Turnover Ratio 6.08x 5.81x Good
Accounts Receivable Turnover Ratio 9.73x 8.41x Good
Average Collection Period (Days sales outstanding) 36.98 days 42.81 days Good
Fixed Assets Turnover Ratio 1.03x 1.00x Good
Total Assets Turnover Ratio 0.96x 0.88x Good
Leverage Ratio
Total Debt Ratio 46.02% 48.17% Good
Long-term Debt Ratio 36.84% 39.37% Good
Long-term Debt to Total Capitalization 40.56% 43.17% Good
Debt to Equity Ratio 0.85x 0.93x Good
Long-term Debt to Equity Ratio 68.24% 75.96% Good
Coverage Ratio
Times Interest Earned Ratio (EBIT/ Interest Expense) 8.24x 3.06x Good
Cash Coverage Ratio (EBIT + Noncash Expenses)/ Interest Expense 11.73x 6.57x Good
Profitability Ratio
Gross Profit Margin 28.65% 20.40% Good
Operating Profit Margin 15.84% 6.48% Good
Net Profit Margin 9.05% 2.62% Good
Return on Assets 8.73% 2.30% Good
Return on Equity 16.17% 4.44% Good
Return on Common Equity 35.38% 10.61% Good
DuPont ROE 16.17% 4.44% Good
NOPAT 41,184 13,764
WACC 33,884 33,066
Net Operating Capital 376,485 367,400
Economic Profit (NOPAT - WACC) 7,300 (19,302)
Big Rock Candy Mining Mountain Co.
Income Statements
For the Years 2015 and 2016
2016 2015
Sales $400,000 $354,000
Cost of Goods 285,400 281,800
Gross Profit 114,600 72,200
Depreciation 26,820 26,360
Selling & Admin Expense 23,340 21,820
Other Operating Expense 1,080 1,080
Net Operating Income 63,360 22,940
Interest Expense 7,685 7,505
Earnings Before Taxes 55,675 15,435
Taxes 19,486 6,174
Net Income $36,189 $9,261
Notes:
Tax Rate 35.00% 40.00%
Shares 52,100 52,100
Earnings per Share $0.29 $0.18
Big Rock Candy Mining Mountain Co.
Balance Sheet
For the Years 2015 and 2016
2016 2015
Assets
Cash $14,714 $10,300
Marketable Securities $1,841 $550
Accounts Receivable $41,090 $42,100
Inventory $46,910 $48,490
Total Current Assets $104,555 $101,440
Gross Fixed Assets $388,000 $352,600
Accumulated Depreciation $78,020 $51,200
Net Plant & Equipment $309,980 $301,400
Total Assets $414,535 $402,840
Liabilities & Owner's Equity
Accounts Payable $35,200 $32,700
Accrued Expenses $2,850 $2,740
Total Current Liabilities $38,050 $35,440
Long-term Debt $152,700 $158,600
Total Liabilities $190,750 $194,040
Common Stock ($1.00 par) $52,100 $52,100
Additional Paid-in-Capital $121,500 $121,500
Retained Earnings $50,185 $35,200
Total Owner's Equity $223,785 $208,800
Total Liabilities & Owner's Equity $414,535 $402,840
Big Rock Candy Mining Mountain Co.
Cash Flow Statement
For the Years 2015 and 2016
2016
Net Income 36,189
Depreciation Expense 26,820
Change in Market Securities -1,291
Change in Accounts Receivable 1,010
Change in Inventory 1,580
Change in Accounts Payable 2,500
Total Cash Flows from Operating $66,808
Change in Plant & Equipment -8,580
Total Cash Flows from Investing -$8,580
Change in Accrued Expense 110
Change in Long-term Debt -5,900
Dividends Paid 21,204
Total Cash Flows from Financing $15,414
Total Cash Inflow $73,642
