Ratio Analysis of Three Different Industries

LETTER OF TRANSMITTAL
9th September 2013 Mr. Abdullah Al Mamun North South University Subject: Submission of report Dear Sir, Here is the report on the Ratio Analysis of three different industries that you have asked us to prepare as a part of the requirement for our Fin 340 course. In presenting this report, we have tried our level best to include all the relevant information and explanations to make this report informative and comprehensive. It was very enriching and exciting experience for us to prepare this report. Our report writing skills and ratio calculating skills have improved a lot during the course of writing this report. If you have any kind of questions or comments regarding the interpretation of this report, please do contact us. We look forward to working under your guidance again in the near future. Thank You for believing in us and giving us this wonderful opportunity. Sincerely, Imtiaz Tariq Rahman Numayer Ahmed Chaudhuri Abdullah Al Rafi Nazifa Antara Prome
Acknowledgement:
This final report on Ratio Analysis of three different industries? is an outcome of the learning of the course FIN-340. We could have never completed this paper without the kind help of Mr. Abdullah Al Mamun Sir. Thus, we take this opportunity to thank our respected faculty from the core of our heart for being so helpful, co-operative and friendly for helping us out throughout the semester and help us to enhance our knowledge in Working Capital Management.
Contents
Ratios Used ..................................................................................................................................... 1 Consumer Goods Industry .............................................................................................................. 5 Monster Beverage Corporation ................................................................................................... 5 Pepsi .......................................................................................................................................... 11 Coca Cola Company: ................................................................................................................ 17 Technology ................................................................................................................................... 23 Apple ......................................................................................................................................... 23 Dell ............................................................................................................................................ 28 IBM ........................................................................................................................................... 34 Health Care Industry ..................................................................................................................... 41 Abiomed Inc .............................................................................................................................. 41 Alere Inc .................................................................................................................................... 50 Alpha pro Inc ............................................................................................................................. 59 Property & Casualty Insurance Industry ....................................................................................... 69 Everest Re Group ...................................................................................................................... 69 American Financial Group ........................................................................................................ 78 ASPIEN ..................................................................................................................................... 88 Appendix ....................................................................................................................................... 97 Financial Statements ................................................................................................................. 97
Ratios Used
Working Capital Requirement (WCR): The working capital requirement is the minimum amount of resources that a company requires to effectively cover the usual costs and expenses necessary to operate the business. Working capital requirement is the difference between current operating assets (such as receivables, inventory, prepaid and other current assets) and current operating liabilities (such as accounts payable, operating accruals and other current liabilities). These accounts represent spontaneous uses and sources of funds over the firms operating cycle. The amount of working capital a company determines it must maintain in order to continue to meet its costs and expenses. The working capital requirement will be different for each company, depending upon many factors such as how frequently the company receives earnings and how high their expenses are. It is calculated as:
Working capital requirement (WCR) = Accounts receivables + Inventory + Prepaid & others CA Notes Payable Accruals & other CL
Net Liquid Balance (NLB): NLB is the difference between current financial assets such as cash and marketable securities and current discretionary or non spontaneous financial liabilities such as notes payable and current maturities or long term debt. It is a measure of liquidity rather than solvency. It examines a company's net liquid financial assets. The net liquid assets show how much of a company's liquid assets would be left if all current liabilities were paid off. The more positive the net liquid balance, the greater the amount of liquid resources the firm has to finance its working capital requirements. If the increase in WCR is seasonal, then drawing down the net liquid balance is appropriate. And if the increase in the WCR is permanent because of a new higher level of operations, then the
FIN 340 Group Project | Ratios Used 1
increase in should be financed with a permanent source of funds in order to maintain the firms level of liquidity. NLB is calculated as: Net liquid balance (NLB) = Cash + marketable securities notes payable current maturities of long term debt. Working Capital Requirement / Sales (WCR/S): It indicates the firms ability to finance additional sales without incurring additional debts. To find the approximate amount of working capital a company should have, you should look at working capital per dollar of sales. It determines the changes in the overall usage of cash over time. The working capital requirements has been standardized by dividing it by sales, developing a working capital requirements to sales ratio, WCR/S. it is statistically different across industry categories, indicating that industries have significantly different working capital needs. All the other factors being constant, the greater this ratio, the greater the reliance a company will have on external funds given a change in sales. Thus, the larger the WCR/S ratio, the less financial flexibility and less liquidity the firm will have, because its operating cycle will require significant investments of funds. When WCR is negative, the firms cash cycle becomes a permanent source of financing and the positive impact on liquidity will be significant. An alternative usage for this ratio is for budgeting purposes, since budgeted working capital levels can be compared to the historical amount of this ratio to see if the budgeted working capital level is sufficient.
Days Inventory Held: DIH Days inventory held is the number of days from the time inventory was purchased to the time it is sold after processing. This is because the delay in DIH will increase the operating cycle duration. This may result into delay in cash conversion period if the DPO remained constant. A low DIH will mean a better inventory management system, because if DIH is higher than
FIN 340 Group Project | Ratios Used
industry average or other standard, the inventory is kept idle. Money is stuck in inventory if DIH is high. DIH is calculated by dividing the ending inventory balance or average inventory by daily cost of goods sold. (daily COGS is COGS/365). DIH = Inventory COGS 365
Days Sales Outstanding: DSO This part of the operating cycle reflects the credit and collection efficiency of the company. In simple words, days sales outstanding represents the day when inventory is sold to the customer on credit to the day the revenue was collected from the customer. DSO represents the average number of days a customer takes to pay for the merchandise. The objective of any company will be to decrease the days in DSO as much as possible. DSO is calculated by dividing end-of-period receivables by average daily sales. DSO = Receivables sales 365
Days Payable Outstanding: DPO DPO shows the account payable management efficiency of the company. DPO is the time duration measured in days from the time inventory is in stock to the moment inventory expense is paid to the supplier. In other words, DPO shows the average days taken by the company to pay for the inventory it bought on credit. Common perspective is that the lower the DPO, the more efficient the company accounts payable management. A company can have higher Operating Cycle (OC), but if DPO is less it can be said that the high OC has got little or no harmful effect on the company. DPO is calculated by dividing the ending Accounts Payable Balance by Average Daily COGS. DPO = Payables COGS 365
Cash conversion period: The cash conversion period (CCP) refers to the period of time in which a company is able to convert its resources into cash. Resources can include such factors as labor, raw materials, and utilities. This metric is used as part of working capital analysis. The cycle can, perhaps, be best defined as the time it takes to collect the cash from sales after paying for the resources purchased by the company. The cash conversion period is important for both retailers and manufacturers as it measures how quickly a company can convert sales into hard cash. Companies should aim to have the shortest possible cycle as it means capital is tied up for less time, making the bottom line stronger. Formula: CCP = DIH + DSO DPO
Operating Cycle (OC) Operating cycle (OC) is the summation of the days sales outstanding (DSO) and days inventory held (DIH). Formula: OC = DIH + DSO
Consumer Goods Industry

Monster Beverage Corporation
Monster Beverage Corporation manufactures energy drinks, natural soft drinks, and fruit drinks including Monster Energy, Hansen's Natural Soda, Hansen's Energy, Hansen's Junior Juice, Peace Tea, and Blue Sky. The company became Hansen's Juices, and later The Fresh Juice Company of California. The plant that was opened in Los Angeles in 1946 was used until operations were moved to a new plant in Azusa, California in 1993. The company filed for bankruptcy in 1988, and was acquired by the California Co Packers Corporation and renamed Hansen Beverage Company. In 1998, the company moved from Anaheim, California to Corona, California. On January 5, 2012, shareholders agreed to change the name of the company from Hansen's Natural to Monster Beverage Corporation, under the new ticker MNST. Shareholders also approved an increase in the number of authorized shares of common stock to 240,000,000 shares from 120,000,000 shares.
FIN 340 Group Project | Consumer Goods Industry
Current Ratio: Current assets are the assets of a business expected to be converted to cash or used up in next 12 months or within the normal operating cycle of the business. Current liabilities on the other hand are the obligations of a business which are to be settled within next 12 months or within the normal operating cycle. Year Monster Beverage Corp Industry average Immediate Competitor (Coca Cola) 2010 1.50 1.40 1.28 2011 0.98 1.08 1.17 2012 0.92 0.98 1.05
2 1.5 1 0.5 0 2008 2009 2010 2011 Monster Beverage Corp Industry average
Monster Beverage Corporation we can see that it has a decreasing trend from 2008 and 2011. That means in the Company is facing a liquidity crisis and having a difficult time paying its payables. Quick Ratio: The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Quick ratio measures the liquidity of a business by matching its cash and near cash current assets with its total liabilities. It helps us to determine whether a business would be able to pay off all its debts by using its most liquid assets.
Year Monster Beverage Corp Industry average Immediate Competitor (Coca Cola)
2010 1.06 1.00 0.95
2011 0.70 0.79 0.85
2012 0.75 0.72 0.78
1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 Monster Beverage Corp Industry average
Monster Beverage Corporation has a decreasing quick ratio from 2009 to 2010 but its increases in 2011. The company is performing better than its competitor and industry average. So, the company has the ability to pay its debts within a specific period of time. Debt Ratio: Debt ratio is a ratio that indicates the proportion of a company's debt to its total assets. It shows how much the company relies on debt to finance assets. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. The higher the ratio, the greater the risk associated with the firm's operation. A low debt ratio indicates conservative financing with an opportunity to borrow in the future at no significant risk. Year Monster Beverage Corp Industry average Immediate Competitor (Coca Cola) 2010 0.64 0.56 0.48 2011 0.72 0.66 0.57 2012 0.76 0.69 0.60
0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 Monster Beverage Corp Industry average
Monster Beverage Corporation debt ratio has decrease in 2009 but increases in 2010 to 2011. In 2009 the company position was good but other than that the company position is not in a good position because the higher the ratio, the greater the risk associated with the firm's operation. Immediate Competitor and industry average is performing better than Monster Beverage Corporation. Time Interest Earned Ratio: Times interest earned ratio is favorable meaning greater ability of a business to repay its interest and debt. Lower values are unfavorable. A ratio of 1.00 means that income before interest and tax of the business is just enough to pay off its interest expense. That is why times interest earned ratio is of special importance to creditors. They can compare the debt repayment ability of similar companies using this ratio. Other things equal, a creditor should lend to a company with highest times interest earned ratio. It is also beneficial to create a trend of times interest earned ratio. Year Monster Beverage Corp Industry average Immediate Competitor (Coca Cola) 2010 4.47 2.46 23.19 2011 8.01 3.44 11.53 2012 8.98 7.36 24.35
10 8 6 4 2 0 -2 2008 2009 2010 2011 Monster Beverage Corp Industry average
Monster Beverage Corporation times interest earned ratio has increase from 2008 to 2011. So, we can say Monster Beverage Corporation is going good because lower values is unfavorable in times interest earned ratio. Return on Assets (ROA): Return on assets indicates the number of cents earned on each dollar of assets. Thus higher values of return on assets show that business is more profitable. This ratio should be only used to compare companies in the same industry. The reason for this is that companies in some industries are most asset-insensitive i.e. they need expensive plant and equipment to generate income compared to others. Their ROA will naturally be lower than the ROA of companies which are low asset-insensitive. An increasing trend of ROA indicates that the profitability of the company is improving. Conversely, a decreasing trend means that profitability is deteriorating. Year Monster Beverage Corp Industry average Immediate Competitor (Coca Cola) 2010 0.06 0.12 0.14 2011 0.06 0.11 0.16 2012 0.07 0.09 0.11
0.15 0.1 0.05 0 2008 -0.05 2009 2010 2011 Monster Beverage Corp Industry average
Monster Beverage Corporation is performing badly from both immediate competitor and industry average. The higher the return on assets the more profitable company will be. So, Monster Beverage return on assets ratio needs to higher to be more profitable.
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Pepsi
PepsiCo serves 200 countries and is a world leader in providing food and beverage products. Its brands consist of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. Some of PepsiCo's brands are over 100 years old, however the company was only founded in 1965 when Pepsi-Cola merged with Frito-Lay. PepsiCo then attained Tropicana and Gatorade when they merged with the Quaker Oats Company. The combined retail sales average about $92 billion. The company is focused on being the premier producer in supplying the world with convenient foods. They offer a wide variety a food options as well, including healthy options.
PepsiCo stands out as a company because of its sustainable advantage. It includes widely known brands, innovative products, and powerful market skills. The company also tries to benefit the community. To make themselves a sustainable company, they have put a focus on the environment and benefiting society with their business. Recently, PepsiCo released information of their plan to drive sustainable water practices and improve rural water in Africa, China, India, and Brazil.
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Current Ratio: Current assets are the assets of a business expected to be converted to cash or used up in next 12 months or within the normal operating cycle of the business. Current liabilities on the other hand are the obligations of a business which are to be settled within next 12 months or within the normal operating cycle. Year Pepsi Industry average Immediate Competitor (Coca Cola) 2010 1.44 1.40 1.28 2011 1.11 1.08 1.17 2012 0.96 0.98 1.05
2 1.5 1 0.5 0 2008 2009 2010 2011 Pepsi Industry average
Pepsi has current ratio better than industry average and immediate competitor. So, Pepsi has greater ability to pay of its debts in a specific period. It also shows that Pepsi not liquidly crisis. Quick Ratio: The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Quick ratio measures the liquidity of a business by matching its cash and near cash current assets with its total liabilities. It helps us to determine whether a business would be able to pay off all its debts by using its most liquid assets.
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Year Pepsi Industry average Immediate Competitor (Coca Cola)

1.2 1 0.8 0.6 0.4 0.2 0 2008
2010 1.00 1.00 0.95
2011 0.80 0.79 0.85
2012 0.62 0.72 0.78
2009
2010
2011
In 2009, Monster Beverage Corporation has a quick ratio of 1 which means that the most liquid assets of a business are equal to its total debts and the business will just manage to repay all its debts by using its cash, marketable securities and accounts receivable. A quick ratio of more than one indicates that the most liquid assets of a business exceed its total debts. In 2008, 2010 and 2011 Monster Beverage Corporation has a quick ratio less than 1 indicates that a business would not be able to repay all its debts by using its most liquid assets. Debt Ratio: Debt ratio is a ratio that indicates the proportion of a company's debt to its total assets. It shows how much the company relies on debt to finance assets. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. The higher the ratio, the greater the risk associated with the firm's operation. A low debt ratio indicates conservative financing with an opportunity to borrow in the future at no significant risk.
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2010 0.56 0.56 0.48
2011 0.68 0.66 0.57
2012 0.71 0.69 0.60
0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 Pepsi Industry average
Pepsi debt ratio is not in a good position compared to industry average. Low debt ratio indicates conservative financing with an opportunity to borrow in the future at no significant risk. Time Interest Earned Ratio: Times interest earned ratio is favorable meaning greater ability of a business to repay its interest and debt. Lower values are unfavorable. A ratio of 1.00 means that income before interest and tax of the business is just enough to pay off its interest expense. That is why times interest earned ratio is of special importance to creditors. They can compare the debt repayment ability of similar companies using this ratio. Other things equal, a creditor should lend to a company with highest times interest earned ratio. It is also beneficial to create a trend of times interest earned ratio.
2010 -20.26 2.46 23.19
2011 -9.23 3.44 11.53
2012 -11.25 7.36 24.35
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10 5 0 -5 -10 -15 -20 -25 2008 2009 2010 2011 Pepsi Industry average
Pepsi times interest ratio is not good because it is very less. Lower values are unfavorable. A ratio of 1.00 means that income before interest and tax of the business is just enough to pay off its interest expense. Return on Assets (ROA): Return on assets indicates the number of cents earned on each dollar of assets. Thus higher values of return on assets show that business is more profitable. This ratio should be only used to compare companies in the same industry. The reason for this is that companies in some industries are most asset-insensitive i.e. they need expensive plant and equipment to generate income compared to others. Their ROA will naturally be lower than the ROA of companies which are low asset-insensitive. An increasing trend of ROA indicates that the profitability of the company is improving. Conversely, a decreasing trend means that profitability is deteriorating. Year Pepsi Industry average Immediate Competitor (Coca Cola) 2010 0.15 0.12 0.14 2011 0.09 0.11 0.16 2012 0.09 0.09 0.11
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0.2 0.15 0.1 0.05 0 2008 2009 2010 2011 Pepsi Industry average
Pepsi has better return on assets compare to its immediate competitor and industry average. Thus higher values of return on assets show that business is more profitable. From 2009 to 2011 the company ROA has a decreasing which means company profitability is decreasing.
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Coca Cola Company:
The Coca-Cola Company, incorporated on September 5, 1919, is a beverage company. The Company owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic sparkling beverage brands, which includes Coca-Cola, Diet Coke, Fanta and Sprite. The Companys segments include Eurasia and Africa, Europe, Latin America, North America, Pacific, Bottling Investments and Corporate. On December 30, 2011, the Company acquired Great Plains Coca-Cola Bottling Company (Great Plains) in the United States. During the year ended December 31, 2011, the Company acquired the remaining interest in Great Plains and Honest Tea, Inc. (Honest Tea). In December 2011, the Company acquired an additional minority interest in Coca-Cola Central Japan Company (Central Japan). In September 2012, it acquired approximately 50% equity in Aujan Industries beverage business. In January 2013, Sacramento Coca-Cola Bottling Company announced that it had been acquired by the Company. Effective February 22, 2013, Coca-Cola Co acquired interest in Fresh Trading Ltd. The Companys core sparkling beverages include Coca-Cola, Sprite, Fanta, Diet Coke / CocaCola Light, Coca-Cola Zero, Schweppes, Thums Up, Fresca, Inca Kola, Lift and Barq's. Its energy drinks include Burn, Nos and Real Gold. Its juices and juice drinks include Minute Maid, Minute Maid Pulpy, Del Valle, Simply, Hi-C, Dobriy and Cappy. The Companys other still beverages include glaceau vitamin water and Fuze. The Companys coffees and teas include Nestea teas, Georgia coffees, Leao / Matte Leao teas, Sokenbicha teas, Dogadan teas and Ayataka teas. Its sports drinks include PowerAde and Aquarius. The Companys waters include Ciel, Dasani, Ice Dew, Bonaqua / Bonaqa and Kinley.
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Current Ratio: Current assets are the assets of a business expected to be converted to cash or used up in next 12 months or within the normal operating cycle of the business. Current liabilities on the other hand are the obligations of a business which are to be settled within next 12 months or within the normal operating cycle. Year Coca Cola Industry average Immediate Competitor (Pepsi) 2009 1.28 1.40 1.44 2010 1.17 1.08 1.11 2011 1.05 0.98 1.96
1.5 1 Coca Cola 0.5 0 2008 2009 2010 2011 Industry average
Coca Cola current ratio is lower than both industry average and immediate competitor. The company might be having difficulty paying off its debts. Quick Ratio: The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Quick ratio measures the liquidity of a business by matching its cash and near cash current assets with its total liabilities. It helps us to determine whether a business would be able to pay off all its debts by using its most liquid assets.
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Year Coca Cola Industry average Immediate Competitor (Pepsi)
2009 0.95 1.00 1.00
2010 0.85 0.79 0.80
2011 0.78 0.72 0.62
1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 Coca Cola Industry average
Coca Cola has a quick ratio of less than one indicates that a business would not be able to repay all its debts by using its most liquid assets. A quick ratio of 1.00 means that the most liquid assets of a business are equal to its total debts and the business will just manage to repay all its debts by using its cash, marketable securities and accounts receivable. Debt Ratio: Debt ratio is a ratio that indicates the proportion of a company's debt to its total assets. It shows how much the company relies on debt to finance assets. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. The higher the ratio, the greater the risk associated with the firm's operation. A low debt ratio indicates conservative financing with an opportunity to borrow in the future at no significant risk. Year Coca Cola Industry average Immediate Competitor (Pepsi)
FIN 340 Group Project | Consumer Goods Industry 19
2009 0.48 0.56 0.56
2010 0.57 0.66 0.68
2011 0.60 0.69 0.71
Chart Title
0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 Coca Cola Industry average
Coca Cola has lower debt ratio than both industry average and immediate competitor. Coca Cola debt ratio is in good position because lower value is preferable. Higher value indicates that higher portion of company's assets are claimed by it creditors which means higher risk in operation since the business would find it difficult to obtain loans for new projects.
Time Interest Earned Ratio: Times interest earned ratio is favorable meaning greater ability of a business to repay its interest and debt. Lower values are unfavorable. A ratio of 1.00 means that income before interest and tax of the business is just enough to pay off its interest expense. That is why times interest earned ratio is of special importance to creditors. They can compare the debt repayment ability of similar companies using this ratio. Other things equal, a creditor should lend to a company with highest times interest earned ratio. It is also beneficial to create a trend of times interest earned ratio. Year Coca Cola Industry average Immediate Competitor (Pepsi) 2009 23.19 2.46 -20.26 2010 11.53 3.44 -9.23 2011 24.35 7.36 -11.25
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30 25 20 15 10 5 0 -5
Coca Cola Industry average
2008
2009
2010
2011
Coca Cola has times interest ratio more than industry average and immediate competitor. Coco Cola has a higher time interest ratio which is favorable. That income before interest and tax of the business is just enough to pay off its interest expense. Return on Assets (ROA): Return on assets indicates the number of cents earned on each dollar of assets. Thus higher values of return on assets show that business is more profitable. This ratio should be only used to compare companies in the same industry. The reason for this is that companies in some industries are most asset-insensitive i.e. they need expensive plant and equipment to generate income compared to others. Their ROA will naturally be lower than the ROA of companies which are low asset-insensitive. An increasing trend of ROA indicates that the profitability of the company is improving. Conversely, a decreasing trend means that profitability is deteriorating.
Year Coca Cola Industry average Immediate Competitor (Pepsi)
2009 0.14 0.12 0.15
2010 0.16 0.11 0.09
2011 0.11 0.09 0.09
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0.2 0.15 0.1 0.05 0 2008 2009 2010 2011 Coca Cola Industry average
Coca Cola has a higher return on assets from both industry average and immediate competitor. Coca Cola has increasing trend return on assets which indicates that the profitability of the company is improving.
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Technology
Apple
Company Overview Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod music player, the iPhone smartphone, and the iPad tablet computer. Its consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites. The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977. The word "Computer" was removed from its name on January 9, 2007, the same day Steve Jobs introduced the iPhone, reflecting its shifted focus towards consumer electronics. Apple is the world's second-largest information technology company by revenue after Samsung Electronics and the world's third-largest mobile phone maker after Samsung and Nokia. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. However, the company has received criticism for its contractors' labor practices, and for Apple's own environmental and business practices. As of May 2013, Apple maintains 408 retail stores in fourteen countries as well as the online Apple Store and iTunes Store, the latter of which is the world's largest music retailer. Apple is the largest publicly traded corporation in the world by market capitalization, with an estimated value of US$415 billion as of March 2013. As of Sept 29 2012, the company had 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide. Its worldwide annual revenue in 2012 totalled $156 billion.[4] In May 2013, Apple entered the top ten of the Fortune 500 list of companies for the first time, rising 11 places above its 2012 ranking to take the sixth position.
FIN 340 Group Project | Technology
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Interpretations for Apple Inc. Company financials Net Liquid Balance: 2010 Cash and Cash $9,815,000 Equivalents +Market securities -Notes Payable Short-Term Debt / Current Portion Long-Term Debt NLB $6,948,000 $10,410,00 $4,600,00 of $2,867,000 $851,000 $663,000 2011 $11,261,000 2012 $5,263,000
2010 NLB $6,948,000
2011 $10,410,00
2012 $4,600,00
NLB
8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 2009 2010 2011 2012 NLB
Net liquid balance for Apple Inc. is increasing in the recent years 2010 and 2009. In year 2010 company had a sound liquidity and it fall in the following years from the middle of 2011
FIN 340 Group Project | Technology 24
company got the highest NLB of$6,948,000. Holding too much idle balance is bad as company lose investment opportunity. Thus the company invested in short term loan in the following years. In recent years, company holding some handsome amounts of NLB. So the NLB position is good in recent years. Working Capital Requirements 2012 Accounts receivables + Inventory Prepaid others CA Payable Accruals & $5,953,000 other CL WCR $22,571,000 $14,945,000 $13,074,00 $4,091,000 $2,984,000 Notes _ _ _ $791,000 & $6,458,000 $776,000 $4,529,000 $1,051,000 $3,447,000 $21,275,000 2011 $13,731,000 2010 $11,560,000
2012 WCR $22,571,000
2011 $14,945,000
2010 $13,074,00
WCR
$25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2012 2011 2010 2009
WCR
WCR for Apple Inc. shows a decreasing trend over the years 2012 to 2010. This is happening because sales for Apple Inc. are decreasing during those years. Net sales reflect the change in
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WCR. As we see from year 2010 to 2012 sales falls as a result WCR also falls. Again in the middle of year 2010 sales increased and thus the WCR also increased. Working Capital Requirements/Sales (WCR/S):
2012 WCR Sales /revenue WCR/S $22,571,000 $156,508,000 0.144
2011 $14,945,000 $108,249,000 0.138
2010 $13,074,00 $65,225,000 0.200
WCR/S
0.25 0.2 0.15 0.1 0.05 0 2012 2011 2010 2009 WCR/S
WCR/S is more or less same in the recent years 2012and 2011. Then we see an increase in 2010 and backwards till 2009, again a slight fall in 2010 and falls continues till 2009. This ratio shows companys dependency on external funds and also talks about firms liquidity. Thus we can see in the year2012and 2011 this ratio is higher, as a result WCR is high in those year indicating companys OC needs a higher fund. In those year where wcr/s is less indicates firm is generating cash from its cash cycle thus we see impact on NLB on those years where NLB is negative.
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DIH, DSO, DPO, OC, CCP: 2012 DIH DSO DPO OC CCP 3.286 49.616 135.407 52.902 -82.505 2011 4.396 46.299 135.273 50.695 -84.578 2010 9.701 64.689 163.738 74.39 -89.348 2009 6.466 52.676 134.344 59.142 -75.02
500 400 300 200 100 0 -100 -200 -300 DIH DSO DPO OC CCP 2010 2011 2012
In the year 2012, on an average, it was that the inventory remains idle. It measures the number of days between the receipt of an item until it is actually sold to the customer or the average number of days inventory sits idle. Overall, we can say that its DSO has been decreased from the year 2009 to 2012. The decreased DSO indicates that they are taking less time to take the payment from their creditors. In the year 20112, on an average, it took to make the payment to the creditors. The greater this number, the slower the payables turnover and the larger the firm is taking to pay its suppliers. Its important for the financial managers to control the payables so that appropriate cash discounts are not lost and that full term payables are paid by the desired time. The rapidly increasing DPO indicates that payments for outstanding payables are being paid slowly. From the year 2009 to 2012, it has been decreased.
Dell
Dell Inc. (formerly Dell Computer) is an American multinational computer technology corporation based in Round Rock, Texas, United States, that develops, sells, repairs and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 103,300 people worldwide. Dell is listed at number 51 in the Fortune 500 list. In 2012 it was the third largest PC vendor in the world after HP and Lenovo. Dell sells personal computers, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, MP3 players and also electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales model and its "build-to-order" or "configure to order" approach to manufacturingdelivering individual PCs configured to customer specifications. Until a few years ago Dell was mainly a pure hardware vendor, but with the acquisition of Perot Systems Dell entered the market for IT services and additional acquisitions in storage and networking systems allow the company to offer complete solutions for enterprise customers compare to their original portfolio of computers only. Dell is the sixth largest company in Texas by total revenue, according to Fortune magazine. It is the second largest non-oil company in Texas behind AT&T and the largest company in the Greater Austin area. On February 5, 2013 Dell announced a leveraged buyout by founder Michael Dell and Silver Lake Partners, with additional funding from Microsoft. The deal is pending shareholder approval as of March 2013.
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Interpretations for DELL Company financials Net Liquid Balance: 2013 Cash and Cash Equivalents +Market securities -Notes Payable Short-Term Debt / Current Portion Long-Term Debt NLB $8726000 $10,985,000 $13,062,000 $9,972,000 of $3,843,000 $2,867,000 $851,000 $663,000 $12,569,000 2012 $13,852,000 2011 $13,913,000 2010 $10,635,000
NLB
$14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2013 2012 2011 2010 NLB
As it can be seen that, net liquid balance over the year has got an increasing pattern, in 2011, NLB of Dell was around$13,062,000 which started to decrease from 2011 and onwards 2013.. This indicates that the company do not maintained much liquid balance letting go of investment opportunities.
Working capital requirement (WCR) 2012 Accounts receivables + Inventory Prepaid others CA Notes Payable Accruals & other CL WCR $10,892,000 2012 WCR $10,892,000 $11,498,000 2011 $11,498,000 $10,197,000 2010 $10,197,000 $3,738,000 $3,158,000 $3,040,000 & $1,404,000 $3,423,000 $1,301,000 $3,219,000 $1,051,000 $3,643,000 $9,803,000 2011 $10,136,000 2010 $8,543,000
WCR
$12,000,000 $11,500,000 $11,000,000 $10,500,000 $10,000,000 $9,500,000 2013 2012 2011 2010 WCR
The working capital requirement of a company has direct relationship with the sales of the company. But in this case the relationship is not that strong, a high sale hardly reflects high WCR. This will be clearer in the next graph. In DELL, the WCR is fluctuating over years. But
even in this fluctuation, the WCR is getting stable in recent year 2013. As the graph reflects, WCR was lowest in 2010 and highest in 2011. In the latest year (2013) WCR was around $10,818,000.
Working Capital Requirements/Sales (WCR/S): 2012 WCR sales (WCR/S) $10,892,000 $62,071,000 0.175 2011 $11,498,000 $61,494,000 0.187 2010 $10,197,000 $52,902,000 0.193
0.195 0.19 0.185 0.18 0.175 0.17 0.165 2013 2012
(WCR/S)
(WCR/S)
2011
2010
As mentioned before, the WCR relationship with sales is not that strong. If it would have been the case, the graph would have been somewhat constant. In the figure above, we see fluctuations. In year 2010 the WCR/S ratio was 0.193, which means that the requirement rate was 19.3% of the sales. Over the years, this rate fluctuated from 19.3% to 18.9%.the highest requirement was in 2013 and the lowest was in 2012 being only 17.5%. This low rate in 2012 can also be related with the high NLB in 2012.
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DIH, DSO, DPO, OC AND CCP:
2012 DIH DSO DPO OC CCP 10.619 57.645 116.443 68.286 -48.179
2011 9.479 60.162 112.739 69.641 -43.098
2010 8.749 58.943 127.605 67.692 -59.913
400
300
200 2010 100 2011 2012 0 DIH -100 DSO DPO OC CCP
-200
We know summation of DIH and DSO is OC, the fluctuation in both DIH and DSO will show the fluctuation in OC. The above figure shows that DIH is fluctuating over the years but DSO is less fluctuating. These movements of DHI and DSO are in the same direction kept OC less
fluctuating. In 2010, DIH of Dell is lowest, which is good for the company. The figure shows that CCP was lowest in 2003 this is because the companys DPO was highest in 2003. So far there is no trend in the variables, but its good that companys DPO and DIH was high in recent years. It will be better for Dell if it maintained a specific trend or standard in its cash conversion period. Right now it is very unpredictable.
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IBM
The International Business Machines Corporation (commonly referred as IBM) is an American multinational technology and consulting corporation, with headquarters in Armonk, New York, United States. IBM manufactures and markets computer hardware and software, and offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology. The company was founded in 1911 as the Computing Tabulating Recording Company (CTR) through a merger of three companies: the Tabulating Machine Company, the International Time Recording Company, and the Computing Scale Company. CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR's subsidiary in Canada and later South America. Securities analysts nicknamed IBM Big Blue in recognition of IBM's common use of blue in products, packaging, and logo. In 2012, Fortune ranked IBM the No. 2 largest U.S. firm in terms of number of employees (433,362), the No. 4 largest in terms of market capitalization,[8] the No. 9 most profitable, and the No. 19 largest firm in terms of revenue. Globally, the company was ranked the No. 31 largest in terms of revenue by Forbes for 2011.Other rankings for 2011/2012 include No. 1 company for leaders (Fortune), No. 1 green company worldwide (Newsweek), No. 2 best global brand (Interbrand), No. 2 most respected company (Barron's), No. 5 most admired company (Fortune), and No. 18 most innovative company (Fast Company). Interpretations for IBM Inc. Company financials
Net Liquid Balance: 2012 Cash and Cash $10,412,000 2011 $11,922,000 2010 $10,661,000
Equivalents +Market securities -
-Notes Payable Short-Term Debt / Current Portion of Long-Term Debt NLB
$9,181,000
$8,463,000
$6,778,000
$1,231,000
$3,459,000
$3,883,000
NLB
$9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2012 2011 2010 2009 NLB
As it can be seen that, net liquid balance over the year has got an fluctuations pattern from 2009 to 2012, NLB of Dell was around$1,231,000which started to decrease from 2009 and onwards 2010.However it was stable throughout 2010 to 2011,again it started to decrease.. The increases are because the firms N/P and CMLTD relatively decrease compared to the respective years
cash and equivalents. This indicates that the company do not maintained much liquid balance letting go of investment opportunities. Working capital requirement (WCR) 2012 Accounts receivables + Inventory Prepaid & others CA Notes Payable Accruals & $11,952,000 $12,197,000 $11,580,000 $2,287,000 $4,024,000 $2,595,000 $5,249,000 $2,450,000 $4,226,000 $31,993,000 2011 $31,162,000 2010 $29,789,000
other CL WCR $26,352,000 $24,473,00 24,885,000
WCR
$30,000,000 $25,000,000 $20,000,000 $15,000,000 WCR $10,000,000 $5,000,000 $0 2012 2011 2010 2009
The working capital requirement of a company has direct relationship with the sales of the company. There is a fluctuations in wcr ,as it was stable through 2009 and 2010,But after 2010 there is a decline and it dropped rapidly in 2011 which was$24,473,00 ,in the following year 2012 it started to increase As the graph reflects, WCR was lowest in 2011 and highest in 2012. In the latest year (2012) WCR was$26,352,000
Working Capital Requirements/Sales (WCR/S): 2012 WCR sales WCR/S $26,352,000 $104,507,000 0.252 2011 $24,473,00 $106,916,000 0.229 2010 $24,885,000 $99,870,000 0.249
WCR/S
0.255 0.25 0.245 0.24 0.235 0.23 0.225 0.22 0.215 2012 2011 2010 2009 WCR/S
From 2009-2012 there were ups and down but it was stable and consistent, from 2010 a decrease, from 2011-2013 a small increase, from 2011-2012 an increase.. Overall, the WCR/S ratio was consistent at 0.252.. The ratio was stable because there were no great changes in the in sales of the four-year period.
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The higher the WCR/S ratio, the less financial flexibility and less liquidity the company will have as its operating cycle will require more investments of funds. 2012 DIH DSO DPO OC CCP 19.034 111.738 151.44 130.772 -20.668 2011 16.682 106.38 137.983 123.062 -14.921 2010 16.6041 108.871 150.481 125.475 -25.006
500 400 300 2010 200 100 0 DIH -100 DSO DPO OC CCP 2011 2012
Here we can see that there was fluctuations in both DIH and DSO and this will show the fluctuation in OC. The above figure shows that DIH is fluctuating over the years but DSO is less fluctuating. These movements of DHI and DSO are in the same direction kept OC less fluctuating. In 2012, DIH of IBM is lowest, which is good for the company. The figure shows that CCP was lowest in 2009 this is because the companys DPO was highest in 2009. So far there is no trend in the variables, but its good that companys DPO and DIH was lower in recent years.. Right now it is very unpredictable.
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Industry Comparison Net Liquid Balance 2012 NLB for $1,231,000 IBM 2011 $3,459,000 2010 $3,883,000
2012 NLB for DELL $10,985,000 2010 NLB for Apple $6,948,000
2011 $13,062,000 2011 $10,410,00 2012
2010 $9,972,000
$4,600,00
2012 WCR Apple WCR DELL WCR IBM

$60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 WCR for Apple
2011 $14,945,000 $13,074,00
for $22,571,000
for $10,892,000
$11,498,000
$10,197,000
for
$26,352,000 $24,473,00
$24,885,000
2009 2010 2011 WCR for DELL WCR for IBM
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2012 WCR/S for IBM (WCR/S) for Dell WCR/S 0.252 0.1899 0.144
2011 0.229 0.175 0.138
2010 0.249 0.187 0.20
7000 6000 5000 4000 3000 2000 1000 0 WCR/S for IBM (WCR/S) for Dell WCR/S
In comparing the industry as a whole we have graphed NLB, WCR, WCR/S, OC, and CCP. From here it is viewed that more or less all the companies are maintaining similar NLB, WCR, WCR/S, OC, and CCP in the norm.
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Health Care Industry

Abiomed Inc
ABIOMED, Inc. develops, manufactures, and markets cardiovascular products. The Company's BVS-5000 is a cardiac assistance device for patients with reversible heart failure. ABIOMED is also developing its AbioCor implantable replacement heart, which is intended to extend the lives of patients with irreversible end- stage heart failure. Abiomed (NASDAQ: ABMD) is a pioneer and global leader in healthcare technology and innovation, with a mission of RECOVERING HEARTS AND SAVING LIVES. Abiomed CEO, Chairman, and President, Michael R. Minogue, has focused the companys efforts on developing ground-breaking technologies designed to assist or replace the life-sustaining pumping function of the failing heart. The Companys portfolio of products and services offer healthcare professionals an array of choices across a broad clinical spectrum. From the worlds first total replacement heart to the Worlds Smallest Heart Pump, 1/100th the size of the heart with rapid and simple insertion, Abiomed is dedicated to finding ways to bring the most advanced and beneficial technology to patients and physicians.
FIN 340 Group Project | Health Care Industry
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Measures of liquidity
Liquidity ratio measures the companys ability to generate cash to meet its immediate need. One of the most universally known ratios, which reflect the Working Capital situation, indicates the ability of a company to pay its short-term creditors from the realization of its current assets and without having to resort to selling its fixed assets to do so. Year Current Ratio 2012 3.95 2011 3.79 2010 3.23
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2010 2011 2012
ABIOMED, Inc. current ratio in 2012 is 3.95 and 2011 is 3.79. This means current asset of the company is 3.95 times more than its current liabilities, and this amount of current asset is good for the company, its shows that company has enough asset for meet the short term liabilities and its also use its asset perfectly.
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Quick Ratio: Year Quick Ratio 2012 3.68 2011 3.46 2010 3.02
3.5
2.5
1.5
0.5
0 2010 2011 2012
Quick Ratio of ABIOMED, Inc. shows that in 2012 the company has 3.68 times ability to meet its current liabilities. In 2011 company has 3.46 times current liabilities, Its improve than 2011. In 2011 the company needs to increase it and the company and now the company is good position.
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Working capital to net sales ratio Working capital per dollar of sales is a financial ratio that tells you how much money a company needs to keep on hand supporting its operations. Typically, the lower the figure, the better
Year Working capital to sales
2012 0.713
2011 .616
2010 0.541
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2010 2011 2012
ABIOMED, Inc. working capital net sales in 2012 was 0.713 this means company needs money 0.713 times than it sales, in 201 it was 0.616 . Debt to Asset Ratio: The debt to asset Ratio is the percentage of total debt financing the firm uses as compared to the presentence of the firms total assets.
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Year Debt to Asset

0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2010
2012 0.63
2011 0.56
2010 0.37
2011
2012
This companys debt to asset ratio is 0.63 this means the company 63% is debt financing in 2011 it was 56% so the debt financing is increase for the company. Debt to Equity Ratio: The Debt to Equity Ratio measures of relationship between the capital contributed by the creditor and the capital contributed by the stockholder. 2012 Debt to Equity 1.07 2011 0.74 2010 0.51
1.2 1 0.8 0.6 0.4 0.2 0 2010 2011 2012
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Companys debt to equity ratio in 2012 was 1.07 this means the companys equity is 1.07 times than its debt. In 2011 it was 0.74 times, so it increases in 2012 which is good for the company. Inventory turnover Inventory Turnover Ratio is one of the efficiency ratios and measures the number of times, on average, the inventory is sold and replaced during the fiscal year. Its measures company's efficiency in turning its inventory into sales. Its purpose is to measure the liquidity of the inventory.
Year Inventory Turnover
2012 8.15
2011 7.51
2010 6.92
8.4 8.2 8 7.8 7.6 7.4 7.2 7 6.8 2010 2011 2012
This measure is one part of the cash conversion cycle, which represents the process of turning raw materials into cash. The days sales of inventory are the first stage in that process. The other two stages are days sales outstanding and days payable outstanding. The first measures how long it takes a company to receive payment on accounts receivable, while the second measures how long it takes a company to pay off its accounts payable.
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Year Daily Inventory held
2012 110
2011 124.71
2010 140.87
ABIOMED, Inc. has daily inventory held in 2011 was 124.71means, its inventory takes average 124.71days to turn into cash and in 2010 it takes 140.87 days. So it increase in 2011 is a good signal for the company. Day sales Outstanding Days Sales Outstanding (DSO) is the number of days it takes to collect your receivables in a given amount of time. It is an important financial indicator as it shows both the age of a companys accounts receivable and the average time it takes to turn those receivables into cash. DSO reveals how many days worth of sales are outstanding and unpaid within a specific period.
Year Days sales outstanding
2012 48.49
2011 55.52
2010 63.57
160 140 120 100 80 60 40 20 0 2010 2011 2012
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ABIOMED, Inc. day sales outstanding in 2012 are 48.49 it shows its takes average 48.49days to collect its receivables. In 2011 it was 55.52 days so the amount of days decrease and its a good sign for the company.
Days payable outstanding The average amount of time it takes a company to pay its account payable. A companies accounts payable are short term liabilities resulting from purchases the company has made on credit.
Year Days payable outstanding
2012 102.09
2011 104.25
2010 106.45
107 106.5 106 105.5 105 104.5 104 103.5 103 102.5 102 101.5 2010 2011 2012
ABIOMED, Inc. Days payable outstanding in 2011 is 104.25means it takes 104 days to pay its payable. In 2010 it takes 106 days, company takes less time to pay its payables and less time to collect its receivables and its a good sign for the company. Operating cycle: The average time between purchasing inventory and receiving cash proceeds from its sales.
FIN 340 Group Project | Health Care Industry 48
Year Operating Cycle
2012 54.6
2011 70.4
2010 201
ABIOMED, Inc. Operating Cycle in 2011 is 70.4means it takes average 70 days to purchase inventory and take cash from sales the inventory. In 2010 it takes average 201 days and now it takes 70 days so its good for the company.
250 200 150 100 50 0 2010 2011 2012
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Alere Inc
Alere, Inc. offers patient diagnosis, monitoring and health management services. The Company produces consumer and professional medical diagnostic products, and remotely monitors patients for pre-eclampsia, and patients who are prescribed Warfarin for atrial fibrillation. We are connected health. We give people the tools to confidently manage their own health, no matter where they are, and reinforce the connection to their doctor. If they are sick, they are improving; if they are healthy, they stay well. We are healthcare reform in practice. Values & Beliefs Empowering individuals to take charge of their own health at home. Our primary areas of focus are cardiology, infectious disease, womens health, oncology and toxicology. Quality Standards With professional and consumer offerings in over 100 disease categories, Alere delivers the widest range of services and solutions. Corporate Responsibility Our senior leaders and Board of Directors believe that managing the company in a transparent, ethical manner enhances our ability to generate sustainable, long-term growth and create value for our shareholders.
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Measures of liquidity Liquidity ratio measures the companys ability to generate cash to meet its immediate need. One of the most universally known ratios, which reflect the Working Capital situation, indicates the ability of a company to pay its short-term creditorsss from the realisation of its current assets and without having to resort to selling its fixed assets to do so. Year Current Ratio 2012 2.81 2011 2.071 2010 1.525
3 2.5 2 1.5 1 0.5 0 2010 2011 2012
Alere, Inc. current ratio in 2011 is 2.071,and 2010 is1.525 this means current asset of the company is 2.071times more than its current liabilities, and this amount of current asset is good for the company, its shows that company has enough asset for meet the short term liabilities and its also use its asset perfectly.
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Quick Ratio: Year Quick Ratio 2012 2 2011 1.55 2010 1.196
2.5 2 1.5 1 0.5 0 2010 2011 2012
Quick Ratio of Alere Inc. shows that in 2012 the company has 2.81 times ability to meet its current liabilities. In 2011 company has 2.071 times current liabilities, its improve than 2011. In 2011 the company needs to increase it and the company and now the company is good position. Working capital to net sales ratio Working capital per dollar of sales is a financial ratio that tells you how much money a company needs to keep on hand supporting its operations. Typically, the lower the figure, the better Year Working capital to sales 2011 0.410 2011 0.280 2010 0.191
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0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 2010 2011 2012
Alere, Inc. working capital net sales in 2012 was .0.410 this means company needs money 0.410times than it sales, in 2010 it was 0.191.this both are good. Debt to Asset Ratio: The debt to asset Ratio is the percentage of total debt financing the firm uses as compared to the presentence of the firms total assets.
Year Debt to Asset
2012 0.97
2011 0.443
2010 0.203
1.2 1 0.8 0.6 0.4 0.2 0 2010 2011 2012
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This companys debt to asset ratio is .97 this means the company 97% is debt financing. In 2010 it was 20% so the debt financing is increase for the company.
Debt to Equity Ratio: The Debt to Equity Ratio measures of relationship between the capital contributed by the creditor and the capital contributed by the stockholder. Year Debt to Equity 2012 3.69 2011 1.258 2010 0.428
4 3.5 3 2.5 2 1.5 1 0.5 0 2009 2010 2011 2012
Companys debt to equity ratio in 2012 was 3.69 this means the companys equity is 3.69 times than its debt. In 2011 it was 1.258 times, so it increases in 2011 which is good for the company.
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Inventory turnover Inventory Turnover Ratio is one of the efficiency ratios and measures the number of times, on average, the inventory is sold and replaced during the fiscal year. Its measures company's efficiency in turning its inventory into sales. Its purpose is to measure the liquidity of the inventory.
2012 2.91
2011 3.5625
2010 4.357
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2010 2011 2012
Alere Inc. has inventory turnover ratio in 2012 is 2.91 it shows, the inventory is 2.91 times sold and replaced. In 2011 it was 3.5625. It increased in 2012 so its good for the company. Daily inventory Held: This measure is one part of the cash conversion cycle, which represents the process of turning raw materials into cash. The days sales of inventory are the first stage in that process. The other two stages are days sales outstanding and days payable outstanding. The first measures how long it takes a company to receive payment on accounts receivable, while the second measures how long it takes a company to pay off its accounts payable. Year Daily Inventory held 2012 125.30 2011 102.45 2010 83.75
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140 120 100 80 60 40 20 0 2010 2011 2012
Alere, Inc. has daily inventory held in 2011 was 102.45means, its inventory takes average 102.45days to turn into cash and in 2010 it takes 84 days. So it increase in 2012 is a good signal for the company. Day sales Outstanding Days Sales Outstanding (DSO) is the number of days it takes to collect your receivables in a given amount of time. It is an important financial indicator as it shows both the age of a companys accounts receivable and the average time it takes to turn those receivables into cash. DSO reveals how many days worth of sales are outstanding and unpaid within a specific period.
2012 0.215
2011 0.199
2010 0.184
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0.22 0.215 0.21 0.205 0.2 0.195 0.19 0.185 0.18 2010 2011 2012
Alere, Inc. day sales outstanding in 2012 are 0.215 it shows its takes average 0.215 days to collect its receivables. In 2011 it was 0.199 days so the amount of days decrease and its a good sign for the company.
Days payable outstanding The average amount of time it takes a company to pay its account payable. A companies accounts payable are short term liabilities resulting from purchases the company has made on credit.
Year Days payable outstanding
2012 59.98
2011 49.627
2010 41.062
Alere, Inc. Days payable outstanding in 2011 is 49.627means it takes 50 days to pay its payable. In 2010 it takes 41 days, company takes less time to pay its payables and less time to collect its receivables and its a good sign for the company.
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70 60 50 40 30 20 10 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Operating cycle: The average time between purchasing inventory and receiving cash proceeds from its sales. Year Operating Cycle 2012 127.40 2011 103.43 2010 83.97
140 120 100 80 60 40 20 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Alere, Inc.Operating Cycle in 2011 is 103.43 means it takes average 103 days to purchase inventory and take cash from sales the inventory. In 2010 it takes average 83 days and now it takes 103 days
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Alpha pro Inc
Alpha Pro Tech, Ltd. develops, manufactures, and markets disposable protective apparel and consumer products. The Company sells its products primarily under the Alpha Pro Tech name to the medical, dental, industrial, clean room, consumer, food service, and pet markets. Alpha ProTech Alpha Pro Tech is in the business of protecting people, products and environments. We accomplish this by developing, manufacturing and marketing a line of high-value protective apparel, infection control products and a line of construction weatherization building products for the housing market. Our products are sold both under the "Alpha Pro Tech" brand name as well as under private labels. History Established in 1989, the company proceeded through various acquisitions which added protective apparel, automated shoe covers and lamination capabilities. The companys name was changed to Alpha Pro Tech in 1994. Currently, the company maintains four vertically integrated production centers producing innovative and high quality products. Products Our products are classified into three business segments. Protective Apparel featuring a complete head to toe protective apparel line, consisting of shoe covers, coveralls, bouffant caps, gowns, frocks and lab coats; Infection Control consisting of a full line of face masks and eye shields, and Building Products consisting of house wrap and synthetic roof underlayment. Markets Target markets are those in the manufacturing of pharmaceuticals, bio-pharmaceutical manufacturing and medical device manufacturing, lab animal research, high technology electronics manufacturing which includes the semi-conductor market, medical, dental and construction supply and roofing distributors.
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Measures of liquidity Liquidity ratio measures the companys ability to generate cash to meet its immediate need. One of the most universally known ratios, which reflect the Working Capital situation, indicates the ability of a company to pay its short-term creditors from the realization of its current assets and without having to resort to selling its fixed assets to do so. Year Current Ratio 2012 31.53 2011 35.17 2010 39.23
45 40 35 30 25 20 15 10 5 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Alpha Pro Tech, Ltd. current ratio in 2011 is 35.17,and 2010 is 39.23 this means current asset of the company is 35.17times more than its current liabilities, and this amount of current asset is good for the company, its shows that company has enough asset for meet the short term liabilities and its also use its asset perfectly.
Quick Ratio: Year Quick Ratio 2012 17.52 2011 17.27 2010 17.024
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17.6 17.5 17.4 17.3 17.2 17.1 17 16.9 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Quick Ratio of Alpha Pro Tech, Ltd. shows that in 2012 the company has 17.52 times ability to meet its current liabilities. In 2011 company has 17.27 times current liabilities, its improve than 2011. In 2011 the company need to increase it and the company and now the company is good position. Working capital to net sales ratio Working capital per dollar of sales is a financial ratio that tells you how much money a company needs to keep on hand supporting its operations. Typically, the lower the figure, the better
Year Working capital to sales
2012 0.830
2011 0.772
2010 0.712
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0.84 0.82 0.8 0.78 0.76 0.74 0.72 0.7 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Alpha Pro Tech, Ltd. working capital net sales in 2012 was 0.830 this means company needs money 0.830 times than it sales, in 2011 it was 0.772. This both are good. Debt to Asset Ratio: The debt to asset Ratio is the percentage of total debt financing the firm uses as compared to the presentence of the firms total assets. Year Debt to Asset 2012 0.65 2011 0.491 2010 0.37
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
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This companys debt to asset ratio is .65 this means the company 65% is debt financing in 2010 it was 37% so the debt financing is increase for the company. Debt to Equity Ratio: The Debt to Equity Ratio measures of relationship between the capital contributed by the creditor and the capital contributed by the stockholder. Year Debt to Equity 2012 2.33 2011 1.468 2010 0.923
2.5 2 1.5 1 0.5 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Companys debt to equity ratio in 2011 was 1.468this means the companys equity is 1.468times than its debt. In 2010 it was 0.923 times, so it increases in 2011 which is good for the company. Inventory turnover
Inventory Turnover Ratio is one of the efficiency ratios and measures the number of times, on average, the inventory is sold and replaced during the fiscal year. Its measures company's efficiency in turning its inventory into sales. Its purpose is to measure the liquidity of the inventory.
FIN 340 Group Project | Health Care Industry 63
2012 1.67
2011 1.57
2010 1.47
1.7 1.65 1.6 1.55 1.5 1.45 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
This measure is one part of the cash conversion cycle, which represents the process of turning raw materials into cash. The days sales of inventory are the first stage in that process. The other two stages are days sales outstanding and days payable outstanding. The first measures how long it takes a company to receive payment on accounts receivable, while the second measures how long it takes a company to pay off its accounts payable.
Year Daily Inventory held
2012 218.5
2011 232.9
2010 248.2
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250 245 240 235 230 225 220 215 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Alpha Pro Tech, Ltd. has daily inventory held in 2011 was 232.9means, its inventory takes average 232.9days to turn into cash and in 2010 it takes 248.2 days. So it increase in 2011 is a good signal for the company. Day sales Outstanding Days Sales Outstanding (DSO) is the number of days it takes to collect your receivables in a given amount of time. It is an important financial indicator as it shows both the age of a companys accounts receivable and the average time it takes to turn those receivables into cash. DSO reveals how many days worth of sales are outstanding and unpaid within a specific period.
2012 43.25
2011 44.74
2010 46.28
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46.5 46 45.5 45 44.5 44 43.5 43 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Alpha Pro Tech, Ltd. day sales outstanding in 2011 are 44.74it shows its takes average 44.74days to collect its receivables. In 2010 it was 46.28days so the amount of days decrease and its a good sign for the company. Days payable outstanding The average amount of time it takes a company to pay its account payable. A companies accounts payable are short term liabilities resulting from purchases the company has made on credit. Year Days payable outstanding 2012 15.52 2011 10.44 2010 7.021
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18 16 14 12 10 8 6 4 2 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Alpha Pro Tech, Ltd. Days payable outstanding in 2011 is 10.44means it takes 10.44 days to pay its payable. In 2010 it takes 7.021 days, company takes less time to pay its payables and less time to collect its receivables and its a good sign for the company. Operating cycle: The average time between purchasing inventory and receiving cash proceeds from its sales. Year Operating Cycle 2012 258 2011 277 2010 297
300 295 290 285 280 275 270 265 260 255 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
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Alpha Pro Tech, Ltd. Operating Cycle in 2011 is 277means it takes average 277 days to purchase inventory and take cash from sales the inventory. In 2010 it takes average 297days and now it takes 61 days so its good for the company.
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Property & Casualty Insurance Industry

Everest Re Group
Everest Re Group, Ltd., through its subsidiaries, is principally engaged in the underwriting of reinsurance and insurance in the United States, Bermuda and international markets. The Company underwrites reinsurance both through brokers and directly with ceding companies. It operates in four segments: U.S. Reinsurance, Insurance, International and Bermuda. On January 2, 2011, the Company acquired the business and operations of Heartland Crop Insurance, Inc. of Topeka, Kansas. On January 28, 2011, the Company acquired the entire business and operations of Premiere Insurance Underwriting Services (Premiere) of Toronto, Canada. On January 31, 2011, the Company acquired operations of the financial lines business of Executive Risk Insurance Services, Ltd. (Executive Risk) of Toronto, Canada.
FIN 340 Group Project | Property & Casualty Insurance Industry
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Ratios 1. Current Ratio = Current Assets/Current Liabilities 2012 2,918,902,000/56,354,000 2011 2,830,459,000/1,02,312,00 0 = 51.80 Immediate Competitor 0.36 = 27.67 Market Leader 12.92 = 44.34 Industry Average 18.48 2010 2,788,883,000/62,899,000
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50
40 30 20 10 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Current Ratio Companies used to maintain higher current ratio which would indicate their increased ability to cover payables. This is usually good when the industry is risky and the positive current ratio will enable the firms to recover from any type of disasters in the unseen future. However, a new trend is recently booming where the current ratio is going down and firms want to their current ratio to be 0 which is considered as the optimum value. But in this case we can see that the current ratio for Everest Re Group has not been consistent and is too high related to the standard. So the company is not well managed as the company is overloaded with assets which are not used properly.
70
Quick Ratio = (Current Assets-Inventory)/Current Liabilities 2012 (2,918,902,000- 0) /56,354,000 = 51.80 Immediate Competitor 0.36 2011 (2,830,459,0000)/1,02,312,000 = 27.67 Market Leader 12.92 2010 (2,788,883,0000)/62,899,000 = 44.34 Industry Average 18.48
Quick Ratio This is a measure of the firms ability to pay current liabilities with its most liquid assets. Again we can see that theoretically the high quick ratio indicates towards its capacity to pay current liabilities. But the high amount proves the inefficiency of the company. The ratio has been fluctuating over the years.
60 50 40 30 20 10 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Net Working Capital = Current Assets-Current Liabilities 2012 2,918,902,000-56,354,000 2011 2,830,459,0001,02,312,000 = 2,862,548,000 Immediate Competitor -3,721,738 =2,728,147,000 Market Leader 5,660,000 = 2,725,984,000 Industry Average 1,874,427.5 2010 2,788,883,000-62,899,000
71
2,880,000,000 2,860,000,000 2,840,000,000 2,820,000,000 2,800,000,000 2,780,000,000 2,760,000,000 2,740,000,000 2,720,000,000 2,700,000,000 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Net Working Capital A positive level of net working capital indicates that current liabilities are not been used for financing the net fixed asset which is relatively risky. The net working capital of the company Everest Re Group Ltd. has been seen at an inclining trend over the years. This is good news for the company.
Total Liabilities to Total Assets = Total Liabilities/Total Assets 2012 18,893,555,000/12,822,180,0 00 = 1.47 Immediate Competitor 0.66 2011 18,384,198,000/12,100,681,0 00 = 1.51 Market Leader 0.87 2010 18,001,312,000/11,899,590,0 00 = 1.51 Industry Average 0.72
Total Liabilities To Total Assets A higher value is risky because it shows proportionately greater use of borrowed money that must be paid back with interest. Everest Re Group Ltd. has reduced their Total Liabilities to Total Assets from 1.51 to 1.47 in the period 2009 -2011.
Long-Term Debt to Capital = Long-Term Debt/(Long Term Debt + Equity) 2012 2011 2010
542,304,000/(542,304,000 + 684,895,000/(684,895,000 + 832,994,000/(832,994,000 + 6,071,375,000) = 0.082 6,283,517,000) = 0.098 6,101,722,000) = 0.12

72
Immediate Competitor 0.59
Market Leader 0.24
Industry Average 0.27
0.14 0.12 0.1 0.08 0.06 0.04 0.02
0
2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Long-Term Debt To Capital -The lower the value, the better it is for the company. It is because the ratio measures the percent of long-term financing that is borrowed. More debt reduces the financial flexibility and increases risks to creditors. Everest Re Group Ltd. has been successful in lowering the value each of the last three years.
Net Profit Margin = Net Income/Revenue 2012 (80,486,000)/4,693,961,000 = - 0.017 Immediate Competitor 0.108 2011 610,754,000/4,705,807,000 = 0.13 Market Leader 0.07 2010 806,989,000/4,498,578,000 = 0.18 Industry Average 0.027
73
0.2 0.15 0.1 0.05 0 2009.5 -0.05 2010 2010.5 2011 2011.5 2012 2012.5
Return on Total Assets = Net Income/Total Assets 2012 (80,486,000)/ 12,822,180,000 = - 0.0062 Immediate Competitor 0.027 = 0.05 Market Leader 0.01 = 0.067 Industry Average 0.00425 2011 610,754,000/12,100,681,000 2010 806,989,000/11,899,590,000
0.08 0.07 0.06 0.05
0.04
0.03 0.02 0.01 0 2009.5 -0.01 2010 2010.5 2011 2011.5 2012 2012.5
Cash Flow to Debt = (Net Income + Depreciation)/(Short Term Debt + Long Term Debt)
74
2012
2011
2010 (806,989,000+32,364,000)/ 832,994,000 = 1.007 Industry Average 0.1925
( -80,486,000 +47,921,000)/ (610,754,000+46,171,000)/ 542,304,000 = - 0.06 Immediate Competitor 0.57 734,895,000 = 0.89 Market Leader 0.38
1.2 1 0.8 0.6 0.4 0.2 0 2009.5 -0.2 2010 2010.5 2011 2011.5 2012 2012.5
Cash Flow to Debt Ratio - Provides an indication of a company's ability to cover total debt with its yearly cash flow from operations. The higher the ratio, the better is the company's ability to carry its total debt. Everest Re Group Ltd. had a ratio of 1.007 in 2009 and - 0.06 in 2011. This means that the company was not performing good considering clearing its debts.
Days Sales Outstanding (DSO) = Accounts Receivable/( Sales/365) 2012 1,784,919,000/(4,693,961,00 0/ 365) = 138.80 Immediate Competitor 268.26 2011 1,786,772,000/(4,705,807,00 0/ 365) = 138.60 Market Leader 369.69 2010 1,868,154,000/(4,498,578,00 0/ 365) = 151.58 Industry Average 260.0225
75
154 152 150 148 146 144 142 140 138 136 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Days Sales Outstanding Shows the no. of days it takes for the company to collect back receivables for goods and services sold on credit. The no. of days is somewhat consistent for Everest Re Group Ltd. over the past two years. It changed its condition from 151 days to 138 days, which is good for the company.
Days Payable Outstanding (DPO) = Accounts Payable/( Cost Of Sales/365) 2012 56,345,000 /(4,859,128,000/365) = 4.23 Immediate Competitor 142.67 2011 52,312,000/(4,043,825,000/3 65) = 4.72 Market Leader 50.14 2010 62,899,000/(3,469,569,000/3 65) = 6.61 Industry Average 65.735
76
7 6 5 4 3 2 1 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Days Payable Outstanding Shows the no. of days it takes for the company to pay back its creditors. The number of days payable outstanding has been pretty much constant for the company.
77
American Financial Group
American Financial Group, Inc. (AFG), is a holding company, which through subsidiaries, is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed and indexed annuities and a range of supplemental insurance products, such as Medicare supplement. AFG manages its business as three segments: property and casualty insurance, annuity and supplemental insurance, and other, which includes holding company assets and costs and the assets and operations of the managed investment entities. In August 2012, Cigna Corporation acquired Great American Supplemental Benefits from the Company. Effective August 24, 2012, the Company increased its interest in Market form Group Limited from 72% to 100%.
78
Ratios 1. Current Ratio = Current Assets/Current Liabilities 2012 6,135,000/475,000 = 12.91579 Immediate Competitor 8.85 2011 5,694,000/320,000 = 17.79375 Market Leader 12.92 2010 6,108,000/462,000 = 13.22078 Industry Average
20 18 16 14 12 10 8 6 4 2 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Current Ratio when the industry condition is risky, companies prefer a higher amount of current ratio to be able to cover its payables. But the recent trend of the companies is to maintain the optimum value which is 0. Here for the American Financial Group the current ratio has decreased compared to its previous year. This is not a good sign for the company which indicates that the company might find it difficult to cover up its payables through its current assets. The value has fallen to 12.91 from 17.73.
79
Quick Ratio = (Current Assets-Inventory)/Current Liabilities 2012 (6,135,000- 0) /475,000 =12.91579 Immediate Competitor 8.85 2011 (5,694,000-0)/ 320,000 = 17.79375 Market Leader 12.92 2010 (6,108,000-0)/ 462,000 = 13.22078 Industry Average 18.48
Quick Ratio This measures the firms ability to pay current liabilities with its most liquid assets. As a result we subtract the inventory (i.e. the least liquid asset) from current asset and once again a downward trend is found from 12.91 to 17.73.
20 18 16 14 12 10 8 6 4 2 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Net Working Capital = Current Assets-Current Liabilities 2012 6,135,000-475,000 = 5,660,000 Immediate Competitor 2,696,900 2011 5,694,000-320,000 =5,374,000 Market Leader 5,660,000 2012 6,108,000-462,000 = 5,646,000 Industry Average 1874427.5
80
5,700,000 5,650,000 5,600,000 5,550,000 5,500,000 5,450,000 5,400,000 5,350,000 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Net Working Capital A positive level of net working capital is good for a company. It indicates that portion of current liabilities is financing the net fixed asset which is relatively risky. For American Financial Group their NWC is largely becoming positive year by year. This is a healthy indication.
Total Liabilities to Total Assets = Total Liabilities/Total Assets 2012 31,497,000/36,042,000 = 0.873897 Immediate Competitor 0.67 2011 27,984,000/32,454,000 = 0.862267 Market Leader 0.87 2010 23,902,000/27,683,000 = 0.863418 Industry Average 0.72
81
0.876 0.874 0.872 0.87 0.868 0.866 0.864 0.862 0.86 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Total Liabilities To Total Assets A higher value is risky because it shows proportionately greater use of borrowed money that must be paid back with interest. The ratio has increased at a very low amount for the American Financial Group. The ratio has been almost constant throughout the three years.
Long-Term Debt to Capital = Long-Term Debt/(Long Term Debt + Equity) 2012 1,409,000/(1,409,000 +4,545,000) = 0.236648 Immediate Competitor 0.17 2011 1,272,000/(1,272,000+ 4,470,000) = 0.221526 Market Leader 0.24 2010 1,290,000/(1,290,000 +3,781,000) = 0.254388 Industry Average 0.27
Long-Term Debt To Capital - Lower value is better because it the measures the percent of longterm financing that is borrowed. More debt reduces the financial flexibility and increases risks to creditors. American Financial Group had managed to reduce the risk from 2009 to 2010. However they could not carry it in the year of 2011. The long term debt to capital ratio has increased over the recent period.
82
0.26 0.255 0.25 0.245 0.24 0.235 0.23 0.225 0.22 0.215 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Net Profit Margin = Net Income/Revenue 2012 343,000/4,750,000 = 0.072211 Immediate Competitor -0.05 2011 479,000/4,497,000 = 0.106515 Market Leader 0.07 2010 519,000/4,320,000 = 0.120139 Industry Average 0.027
0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
83
Net Profit Margin The Higher the value the better it is as it measures the ability to generate profit from each $1 of sales declining profit margin is a serious threat to the company. The net profit margin ratio has declined over the years for the American Financial Group from 0.12 to 0.072.
Return on Total Assets = Net Income/Total Assets 2012 343,000/36,042,000 = 0.009517 Immediate Competitor -0.01 2011 479,000/32,454,000 = 0.014759 Market Leader 0.009 2010 519,000/27,683,000 = 0.018748 Industry Average 0.00425
0.02 0.018 0.016 0.014 0.012 0.01 0.008 0.006 0.004
0.002
0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Return On Total Asset Higher is better as it measures the ability to generate profit from each $1 of assets. American Financial Group has decreased this value from 0.018 in 2009 to 0.009 in 2011. Cash Flow to Debt Ratio - Provides an indication of a company's ability to cover total debt with its yearly cash flow from operations. The higher the ratio, the better is the company's ability to carry its total debt. American Financial Group had a ratio of 0.54 in 2010 and 0.37 in 2011.
84
Cash Flow to Debt = (Net Income + Depreciation)/(Short Term Debt + Long Term Debt) 2012 (343,000+192,000)/1,409,0 00 = 0.379702 Immediate Competitor -0.12 2011 (479,000+214,000)/1,272,0 00 = 0.544811 Market Leader 0.38 2010 (519,000+198,000)/1,290,0 00 = 0.555814 Industry Average 0.1925
0.6 0.5 0.4 0.3 0.2 0.1 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Days Sales Outstanding (DSO) = Accounts Receivable/( Sales/365) 2012 4,811,000/(4,750,000/365) = 369.6874 Immediate Competitor 263.35 2011 4,595,000/(4,497,000/365) = 372.9542 Market Leader 369.69 2010 4,988,000/(4,320,000/365) = 421.4398 Industry Average 260.02
Days Sales Outstanding Shows the no. of days it takes for the company to collect back receivables for goods and services sold on credit. American Financial Group has been successful to complete its manufacturing till sale of products within a short time compared to the former years. The company used to take 421 days in 2009 and took 369 days in 2011.
FIN 340 Group Project | Property & Casualty Insurance Industry 85
Days Payable Outstanding Shows the no. of days it takes for the company to pay back its creditors. American Financial Group has increased the day of paying the creditor to 50 days from 38 days.
430 420 410 400
390
380 370 360 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Days Payable Outstanding (DPO) = Accounts Payable/( Cost Of Sales/365) 2012 475,000/(3,458,000/365) = 50.13736 Immediate Competitor 65.9 2011 320,000/(3,066,000/365) = 38.09524 Market Leader 50.14 2010 320,000/(2,791,000/365) = 41.8488 Industry Average 65.73
86
60
50
40 30 20 10 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
87
ASPIEN
Aspen Insurance Holdings Limited (Aspen Holdings) is a holding company. The Company conducts insurance and reinsurance business through its subsidiaries in three jurisdictions: Aspen Insurance UK Limited (Aspen U.K.) and Aspen Underwriting Limited (AUL), corporate member of Syndicate 4711 at Lloyd's of London (United Kingdom), Aspen Bermuda Limited (Aspen Bermuda) and Aspen Specialty Insurance Company (Aspen Specialty) and Aspen American Insurance Company (AAIC). Aspen U.K. also has branches in Paris (France), Zurich (Switzerland), Dublin (Ireland), Cologne (Germany), Singapore, Australia and Canada. It operates in the global markets for property and casualty insurance and reinsurance. Its insurance segment is consisted of property, casualty, marine, energy and transportation insurance and financial and professional lines insurance. Its reinsurance segment is consisted of property reinsurance (catastrophe and other), casualty reinsurance and specialty reinsurance.
88
Ratios 1. Current Ratio = Current Assets/Current Liabilities 2012 3,040,500/343,600 = 8.84895227 Immediate Competitor 12.92 2011 2,700,900/362,800 = 7.444597574 Market Leader 12.92 2010 2,329,700/370,400 = 6.289686825 Industry Average 18.48
10 8 6 4 2
0
2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Current Ratio when the industry condition is risky, companies prefer a higher amount of current ratio to be able to cover its payables. But the recent trend of the companies is to maintain the optimum value which is 0. Here for Aspen PLC the current ratio has increased gradually compared to its previous year. This is good for the company because the company is improving its condition to cover up its payables through its current assets. The value has risen to 8.84 from 6.28.
Quick Ratio = (Current Assets-Inventory)/Current Liabilities 2012 (3,040,500-0)/343,600 = 8.84895227 Immediate Competitor 12.92 2011 (2,700,900-0)/362,800 = 7.444597574 Market Leader 12.92 2010 (2,329,700-0)/370,400 = 6.289686825 Industry Average 18.48
89
10 8 6 4 2
0
2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Quick Ratio Quick ratio is the measure of the firms ability to pay current liabilities with its most liquid assets. As a result we subtract the inventory (i.e. the least liquid asset) from current asset and once again an upward trend from 7.44 to 8.84 over the years.
Net Working Capital = Current Assets-Current Liabilities 2012 3,040,500-343,600 = 2,696,900 Immediate Competitor 5,660,000 2011 2,700,900-362,800 = 2,338,100 Market Leader 5,660,000 2010 2,329,700-370,400 = 1,959,300 Industry Average 1874427.5
3,000,000
2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
2009.5
2010
2010.5
2011
2011.5
2012
2012.5
90
Net Working Capital A positive level of net working capital is good for a company. It indicates that portion of current liabilities is financing the net fixed asset which is relatively risky. For Aspen PLC their NWC is largely becoming positive year by year. This is a healthy indication.
Total Liabilities to Total Assets = Total Liabilities/Total Assets 2012 6,304,900/9,476,500 = 0.665319474 Immediate Competitor 0.87 2011 5,590,700/8,832,100 = 0.632997815 Market Leader 0.87 2010 4,951,800/8,257,200 = 0.599694812 Industry Average 0.72
Total Liabilities To Total Assets A higher value is risky because it shows proportionately greater use of borrowed money that must be paid back with interest. The ratio has increased at a significant rate throughout the period of three years.
0.67 0.66 0.65 0.64 0.63
0.62
0.61 0.6 0.59 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Long-Term Debt to Capital = Long-Term Debt/(Long Term Debt + Equity) 2012 654,800/(654,800+3,171,60 2011 612,500/(612,500 2010 360,400/(360,400+3,305,40
91
0) = 0.171126908 Immediate Competitor 0.24
+3,241,400) =0.158929915 Market Leader 0.24
0) = 0.098314147 Industry Average 0.27
0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Long-Term Debt To Capital - Lower value is better because it the measures the percent of longterm financing that is borrowed. More debt reduces the financial flexibility and increases risks to creditors. Aspen PLC could not manage to control their long term debt to capital ratio. The long term debt to capital ratio has increased gradually over the periods.
Net Profit Margin = Net Income/Revenue 2012 -105,800/2,077,700 =-0.05092169 Immediate Competitor 0.07 2011 312,700/2,190,400 = 0.142759313 Market Leader 0.07 2010 473,900/2,082,900 = 0.227519324 Industry Average 0.027
92
0.25 0.2 0.15 0.1 0.05 0 2009.5 -0.05 -0.1 2010 2010.5 2011 2011.5 2012 2012.5
Net Profit Margin The higher the value the better it is for the company. This ratio measures the ability to generate profit from each $1 of sales. Aspen PLC was not doing well in terms of the net profit. The value is negative seen to be falling in the year 2012 compared to the value from 2011 and 2010.
Return on Total Assets = Net Income/Total Assets 2012 -105,800/9,476,500 = -0.01116446 Immediate Competitor 0.01 2011 312,700/8,832,100 = 0.035404943 Market Leader 0.01 2010 473,900/8,257,200 = 0.057392336 Industry Average 0.00425
Return On Total Asset High return on asset is always beneficial for the company. The Higher the better as it measures the ability to generate profit from each $1 of assets. Aspen PLC has not been successful to generate profit from their assets. The return on asset value is on negative in the year 2011 where as the previous two years show a positive sign. The return has been noticed to decrease over the years from .077 to .35 and even negative in 2011.
93
0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 2009.5 -0.01 -0.02 2010 2010.5 2011 2011.5 2012 2012.5
Cash Flow to Debt = (Net Income + Depreciation)/(Short Term Debt + Long Term Debt) 2012 (-105,800+28,100)/ 654,800 = -0.11866219 Immediate Competitor 0.38 = 0.545469388 Market Leader 0.38 = 1.344062153 Industry Average 0.1925 2011 (312,700+21,400)/ 612,500 2010 (473,900+10,500)/ 360,400
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2009.5 -0.2 2010 2010.5 2011 2011.5 2012 2012.5
94
Cash Flow to Debt Ratio - Provides an indication of a company's ability to cover total debt with its yearly cash flow from operations. The higher the ratio, the better is the company's ability to carry its total debt. Aspen PLC had a ratio of 1.344 in 2009 and - 0.11 in 2011. This means that the company was not performing good considering clearing its debts.
Days Sales Outstanding (DSO) = Accounts Receivable/( Sales/365) 2012 1,499,100/(2,077,700/365) = 263.3544304 Immediate Competitor 369.69
300 250 200 150 100
2011 1,232,100/(2,190,400/365) = 205.3125 Market Leader 369.69
2010 1,209,600/(2,082,900/365) = 211.9660089 Industry Average 260.02
50
0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
Days Sales Outstanding Shows the no. of days it takes for the company to collect back receivables for goods and services sold on credit. The no. of days for Aspen PLC to collect receivables and manufacture was 205 days in 2010. After a year, it took them 263 days which is not good for the company.
95
Days Payable Outstanding (DPO) = Accounts Payable/( Cost Of Sales/365) 2012 343,600/(1,903,000/365) = 65.90331056 Immediate Competitor 50.14
120 100 80 60 40 20 0 2009.5 2010 2010.5 2011 2011.5 2012 2012.5
2011 362,800/(1,577,200/365) = 83.9601826 Market Leader 50.14
2010 370,400/(1,282,200/365) = 105.4406489 Industry Average 65.735
Days Payable Outstanding Shows the no. of days it takes for the company to pay back its creditors. The number of days payable outstanding has decreased over the years.
96
Appendix
Financial Statements
FIN 340 Group Project | Appendix
97
98
99
100
In Millions of USD (except for per share items) Cash & Equivalents Short Term Investments Cash and Short Term Investments Accounts Receivable - Trade, Net Receivables - Other Total Receivables, Net Total Inventory Prepaid Expenses Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Total - Gross Accumulated Depreciation, Total Goodwill, Net Intangibles, Net Long Term Investments Other Long Term Assets, Total Total Assets Accounts Payable Accrued Expenses Notes Payable/Short Term Debt Current Port. of LT Debt/Capital Leases Other Current liabilities, Total Total Current Liabilities Long Term Debt Capital Lease Obligations Total Long Term Debt Total Debt Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Redeemable Preferred Stock, Total Preferred Stock - Non Redeemable, Net Common Stock, Total Additional Paid-In Capital Retained Earnings (Accumulated Deficit)
As of 2012-12-29 6,297.00 322.00 6,619.00 6,058.00 7,041.00 3,581.00 1,479.00 18,720.00 36,162.00 -17,026.00 16,971.00 16,525.00 2,351.00 799.00 74,638.00 4,451.00 3,892.00 4,815.00 3,931.00 17,089.00 23,544.00 23,544.00 28,359.00 5,063.00 105.00 6,543.00 52,344.00 -123.00 26.00 4,178.00 43,158.00
101
Treasury Stock - Common Other Equity, Total Total Equity Total Liabilities & Shareholders' Equity Shares Outs - Common Stock Primary Issue Total Common Shares Outstanding
-19,458.00 -5,487.00 22,294.00 74,638.00 1,544.00
102
In Millions of USD (except for per share items) Cash & Equivalents Short Term Investments Cash and Short Term Investments Accounts Receivable - Trade, Net Receivables - Other Total Receivables, Net Total Inventory Prepaid Expenses Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Total - Gross Accumulated Depreciation, Total Goodwill, Net Intangibles, Net Long Term Investments Other Long Term Assets, Total Total Assets Accounts Payable Accrued Expenses Notes Payable/Short Term Debt Current Port. of LT Debt/Capital Leases Other Current liabilities, Total Total Current Liabilities Long Term Debt Capital Lease Obligations Total Long Term Debt Total Debt Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Redeemable Preferred Stock, Total Preferred Stock - Non Redeemable, Net Common Stock, Total
As of 2011-12-31 4,067.00 358.00 4,425.00 5,879.00
6,912.00 3,827.00 2,277.00
17,441.00 35,140.00 -15,442.00 16,800.00 16,445.00 1,566.00 773.00
72,882.00 4,083.00 3,876.00 6,205.00
3,990.00
18,154.00 20,568.00
20,568.00
26,773.00 4,995.00 311.00 8,266.00
52,294.00
-116.00 26.00
103
In Millions of USD (except for per share items) Retained Earnings (Accumulated Deficit) Treasury Stock - Common Other Equity, Total Total Equity Total Liabilities & Shareholders' Equity Shares Outs - Common Stock Primary Issue Total Common Shares Outstanding
As of 2011-12-31
40,316.00 -17,870.00 -6,229.00
20,588.00
72,882.00
1,565.00
104
In Millions of USD (except for per share items) Revenue Other Revenue, Total Total Revenue Cost of Revenue, Total Gross Profit Selling/General/Admin. Expenses, Total Research & Development Depreciation/Amortization Interest Expense(Income) - Net Operating Unusual Expense (Income) Other Operating Expenses, Total Total Operating Expense Operating Income Interest Income(Expense), Net Non-Operating Gain (Loss) on Sale of Assets Other, Net Income Before Tax Income After Tax Minority Interest Equity In Affiliates Net Income Before Extra. Items Accounting Change Discontinued Operations Extraordinary Item Net Income
2012-12-29 65,492.00 65,492.00 31,291.00 34,201.00 24,675.00 119.00 295.00 56,380.00 9,112.00 8,304.00 6,214.00 -36.00 6,178.00 6,178.00
2011-12-31 66,504.00 66,504.00 31,593.00 34,911.00 24,433.00 133.00 712.00 56,871.00 9,633.00 8,834.00 6,462.00 -19.00 6,443.00 -
2010-12-30 57,838.00 57,838.00 26,575.00 31,263.00 21,770.00 117.00 1,044.00 49,506.00 8,332.00 8,232.00 6,338.00 -18.00 6,320.00 -
105
Monster Beverage
In Millions of USD (except for per share items) Revenue Other Revenue, Total Total Revenue Cost of Revenue, Total Gross Profit Selling/General/Admin. Expenses, Total Research & Development Depreciation/Amortization Interest Expense(Income) - Net Operating Unusual Expense (Income) Other Operating Expenses, Total Total Operating Expense Operating Income Interest Income(Expense), Net Non-Operating Gain (Loss) on Sale of Assets Other, Net Income Before Tax Income After Tax Minority Interest Equity In Affiliates Net Income Before Extra. Items Accounting Change Discontinued Operations Extraordinary Item Net Income 2012-12-31 2,060.70 2,060.70 995.05 1,065.66 -0.80 515.03 1,509.28 551.42 549.15 340.02 340.02 340.02 2011-12-31 1,703.23 1,703.23 808.92 894.31 437.89 1,246.81 456.42 457.27 286.22 286.22 286.22 2010-12-30 1,143.30 1,143.30 530.98 612.32 275.01 805.99 337.31 335.69 208.72 208.72 -
212
106
In Millions of USD (except for per share items) Cash & Equivalents Short Term Investments Cash and Short Term Investments Accounts Receivable - Trade, Net Receivables - Other Total Receivables, Net Total Inventory Prepaid Expenses Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Total - Gross Accumulated Depreciation, Total Goodwill, Net Intangibles, Net Long Term Investments Other Long Term Assets, Total Total Assets Accounts Payable Accrued Expenses Notes Payable/Short Term Debt Current Port. of LT Debt/Capital Leases Other Current liabilities, Total Total Current Liabilities Long Term Debt Capital Lease Obligations Total Long Term Debt Total Debt Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Redeemable Preferred Stock, Total Preferred Stock - Non Redeemable, Net Common Stock, Total Additional Paid-In Capital
As of 2012-12-31 222.51 97.04 319.56 236.04 236.71 203.11 58.69 17.00 835.07 116.35 -47.21 54.65 21.39 63.08 1,043.33 127.33 143.05 0.00 18.16 288.55 0.00 0.00 110.38 398.93 1.02 287.95
As of 2011-12-31 359.33 411.28 770.61 218.07 218.74 155.61 21.28 16.43 1,182.68 82.11 -36.96 48.40 23.19 62.98 1,362.40 113.45 130.06 0.00 22.58 266.09 0.00 0.00 117.15 383.24 0.99 229.30
107
Retained Earnings (Accumulated Deficit) Treasury Stock - Common Other Equity, Total Total Equity Total Liabilities & Shareholders' Equity Shares Outs - Common Stock Primary Issue Total Common Shares Outstanding
1,508.66 -1,155.31 0.55 644.40 1,043.33 165.78
1,168.64 -418.23 -1.55 979.16 1,362.40 174.28
108
Everest Re. Financial Report
109
110
Abiomed.inc
Income Statement
All Values in Millions USD (except Per Share)
FY 2011
Period End Date Revenue - Cost of Revenue Gross Profit - Operating Expenses Operating Income - Interest Expense - Foreign Exchange Losses (Gains) - Net Non-Operating Losses (Gains) Pretax Income - Income Tax Expense Income Before XO Items - Extraordinary Loss Net of Tax - Minority Interests Net Income - Total Cash Preferred Dividends - Other Adjustments Net Inc Avail to Common Shareholders Abnormal Losses (Gains) Tax Effect on Abnormal Items Normalized Income Basic EPS Before Abnormal Items Basic EPS Before XO Items Basic EPS Basic Weighted Avg Shares Diluted EPS Before Abnormal Items
FIN 340 Group Project | Appendix 111
3/31/2011 101.15 21.98 79.17 90.36 -11.19 0.00 0.00 -0.32 -10.86 0.89 -11.76 0.00 0.00 -11.76 0.00 0.00 -11.76 0.34 -0.12 -11.54 -0.31 -0.32 -0.32 37.17 -0.31
Diluted EPS Before XO Items Diluted EPS Diluted Weighted Avg Shares
-0.32 -0.32 37.17
112
Balance sheet
Period End Date Assets + Cash & Near Cash Items + Short-Term Investments + Accounts & Notes Receivable + Inventories + Other Current Assets Total Current Assets + LT Investments & LT Receivables + Net Fixed Assets + Other Long-Term Assets Total Long-Term Assets Total Assets Liabilities & Shareholders' Equity + Accounts Payable + Short-Term Borrowings + Other Short-Term Liabilities Total Current Liabilities
3/31/2011
5.83 54.48 15.38 7.51 1.54 84.74 0.00 6.27 40.58 46.85 131.59
6.28 0.00 16.06 22.34
113
+ Long-Term Borrowings + Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities + Total Preferred Equity + Minority Interest + Share Capital & APIC + Retained Earnings & Other Equity Total Equity Total Liabilities & Equity
0.00 4.50 4.50 26.85 0.00 0.00 379.60 -274.85 104.74 131.59
114
ALERE.Inc
Income Statement
All Values in Millions USD (except Per Share)
FY 2011
FY 2010
Period End Date Revenue - Cost of Revenue Gross Profit - Operating Expenses Operating Income - Interest Expense - Foreign Exchange Losses (Gains) - Net Non-Operating Losses (Gains) Pretax Income - Income Tax Expense Income Before XO Items - Extraordinary Loss Net of Tax - Minority Interests Net Income - Total Cash Preferred Dividends - Other Adjustments
12/31/2011 2,386.53 1,140.69 1,245.84 1,115.08 130.76 203.97 0.00 84.31 -157.52 -24.21 -133.31 0.00 0.23 -133.54 22.05 23.94 FIN 340 Group Project | Appendix 115
12/31/2010 2,155.35 1,020.76 1,134.59 1,079.32 55.27 139.44 0.00 973.05 -1,057.22 -29.93 -1,027.29 -11.40 1.42 -1,017.31 24.24 0.00
Net Inc Avail to Common Shareholders Abnormal Losses (Gains) Tax Effect on Abnormal Items Normalized Income Basic EPS Before Abnormal Items Basic EPS Before XO Items Basic EPS Basic Weighted Avg Shares Diluted EPS Before Abnormal Items Diluted EPS Before XO Items Diluted EPS Diluted Weighted Avg Shares
-179.53 156.81 -54.88 -77.60 -0.35 -1.58 -1.58 83.13 -0.35 -1.58 -1.58 83.13
-1,041.55 1,021.40 -357.49 -389.03 -4.61 -12.47 -12.33 84.45 -4.61 -12.47 -12.33 84.45
116
Balance Sheet
Period End Date Assets + Cash & Near Cash Items + Short-Term Investments + Accounts & Notes Receivable + Inventories + Other Current Assets Total Current Assets + LT Investments & LT Receivables + Net Fixed Assets + Other Long-Term Assets Total Long-Term Assets Total Assets Liabilities & Shareholders' Equity + Accounts Payable + Short-Term Borrowings + Other Short-Term Liabilities Total Current Liabilities
12/31/2011
12/31/2010
299.17 1.09 475.82 320.27 197.38 1,293.73 2.25 491.21 4,885.52 5,378.97 6,672.70
401.31 2.09 397.15 257.72 135.99 1,194.26 9.40 390.51 4,736.20 5,136.12 6,330.37
155.46 73.42 395.57 624.45
126.84 19.02 637.00 782.86
117
+ Long-Term Borrowings + Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities + Total Preferred Equity + Minority Interest + Share Capital & APIC + Retained Earnings & Other Equity Total Equity Total Liabilities & Equity
3,280.08 534.10 3,814.18 4,438.63 709.76 4.84 3,221.50 -1,702.03 2,234.07 6,672.70
2,379.97 589.82 2,969.79 3,752.65 718.55 2.69 3,232.98 -1,376.49 2,577.73 6,330.37
118
A.H Belo Corporation
Income Statement
Period End Date Revenue - Cost of Revenue Gross Profit - Operating Expenses Operating Income - Interest Expense - Foreign Exchange Losses (Gains) - Net Non-Operating Losses (Gains) Pretax Income - Income Tax Expense Income Before XO Items - Extraordinary Loss Net of Tax - Minority Interests Net Income - Total Cash Preferred Dividends
12/31/2011 461.50 174.94 286.56 285.47 1.09 0.67 0.00 6.34 -5.92 5.01 -10.93 0.00 0.00 -10.93 0.00
12/31/2010 487.31 183.02 304.29 438.96 -134.67 0.81 0.00 -3.66 -131.81 -7.58 -124.24 0.00 0.00 -124.24 0.00
119
- Other Adjustments Net Inc Avail to Common Shareholders Abnormal Losses (Gains) Tax Effect on Abnormal Items Normalized Income Basic EPS Before Abnormal Items Basic EPS Before XO Items Basic EPS Basic Weighted Avg Shares Diluted EPS Before Abnormal Items Diluted EPS Before XO Items Diluted EPS Diluted Weighted Avg Shares
0.00 -10.93 10.50 -3.68 -4.11 -0.19 -0.51 -0.51 21.50 -0.19 -0.51 -0.51 21.50
0.00 -124.24 132.35 -46.32 -38.21 -1.82 -5.92 -5.92 20.99 -1.82 -5.92 -5.92 20.99
Balance sheet
Period End Date Assets + Cash & Near Cash Items + Short-Term Investments
12/31/2011
12/31/2010
57.44 0.00
86.29 0.00
120
+ Accounts & Notes Receivable + Inventories + Other Current Assets Total Current Assets + LT Investments & LT Receivables + Net Fixed Assets + Other Long-Term Assets Total Long-Term Assets Total Assets Liabilities & Shareholders' Equity + Accounts Payable + Short-Term Borrowings + Other Short-Term Liabilities Total Current Liabilities + Long-Term Borrowings + Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities + Total Preferred Equity + Minority Interest
50.53 9.92 10.31 128.20 6.11 163.42 47.36 216.89 345.09
56.79 12.65 17.23 172.96 16.66 176.68 53.75 247.09 420.05
18.06 0.00 52.66 70.72 0.00 152.89 152.89 223.61 0.00 0.00
29.16 0.00 105.34 134.50 0.00 85.68 85.68 220.18 0.00 0.00
121
+ Share Capital & APIC + Retained Earnings & Other Equity Total Equity Total Liabilities & Equity
493.99 -372.51 121.48 345.09
491.75 -291.88 199.87 420.05
Cash Flow
Period End Date Cash From Operating Activities + Net Income + Depreciation & Amortization + Other Non-Cash Adjustments + Changes in Non-Cash Capital Cash From Operations Cash From Investing Activities + Disposal of Fixed Assets + Capital Expenditures + Increase in Investments + Decrease in Investments + Other Investing Activities Cash From Investing Activities
12/31/2011
12/31/2010
-10.93 35.67 17.89 -57.78 -15.16
-124.24 38.14 134.06 13.25 61.22
1.10 -8.66 -2.96 0.00 0.79 -9.73 FIN 340 Group Project | Appendix 122
9.77 -10.60 0.00 0.00 0.03 -0.80
Cash from Financing Activities + Dividends Paid + Change in Short-Term Borrowings + Increase in Long-Term Borrowings + Decrease in Long-term Borrowings + Increase in Capital Stocks + Decrease in Capital Stocks + Other Financing Activities Cash from Financing Activities Net Changes in Cash -4.06 0.00 0.00 0.00 0.10 0.00 0.00 -3.96 -28.85 0.00 0.00 0.00 0.00 1.37 0.00 0.00 1.37 61.79
123
Aspen
124
125
126
American Financial Group
127
128
Alpha Pro Tech
129
130
131
Apple
132
133
134
IBM
135
136
Dell
137
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Ratio Analysis of Three Different Industries

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Ratio Analysis of Three Different Industries

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LETTER OF TRANSMITTAL

FIN 340 Group Project | Ratios Used

FIN 340 Group Project | Ratios Used

FIN 340 Group Project | Ratios Used

Consumer Goods Industry

FIN 340 Group Project | Consumer Goods Industry

FIN 340 Group Project | Consumer Goods Industry

2010 1.06 1.00 0.95

2011 0.70 0.79 0.85

2012 0.75 0.72 0.78

FIN 340 Group Project | Consumer Goods Industry

FIN 340 Group Project | Consumer Goods Industry

10 8 6 4 2 0 -2 2008 2009 2010 2011 Monster Beverage Corp Industry average

FIN 340 Group Project | Consumer Goods Industry

FIN 340 Group Project | Consumer Goods Industry

FIN 340 Group Project | Consumer Goods Industry

2 1.5 1 0.5 0 2008 2009 2010 2011 Pepsi Industry average

FIN 340 Group Project | Consumer Goods Industry

Year Pepsi Industry average Immediate Competitor (Coca Cola)

2010 1.00 1.00 0.95

2011 0.80 0.79 0.85

2012 0.62 0.72 0.78

FIN 340 Group Project | Consumer Goods Industry

Year Pepsi Industry average Immediate Competitor (Coca Cola)

2010 0.56 0.56 0.48

2011 0.68 0.66 0.57

2012 0.71 0.69 0.60

Year Pepsi Industry average Immediate Competitor (Coca Cola)

2010 -20.26 2.46 23.19

2011 -9.23 3.44 11.53

2012 -11.25 7.36 24.35

FIN 340 Group Project | Consumer Goods Industry

FIN 340 Group Project | Consumer Goods Industry

FIN 340 Group Project | Consumer Goods Industry

Coca Cola Company:

FIN 340 Group Project | Consumer Goods Industry

FIN 340 Group Project | Consumer Goods Industry

Year Coca Cola Industry average Immediate Competitor (Pepsi)

2009 0.95 1.00 1.00

2010 0.85 0.79 0.80

2011 0.78 0.72 0.62

2009 0.48 0.56 0.56

2010 0.57 0.66 0.68

2011 0.60 0.69 0.71

FIN 340 Group Project | Consumer Goods Industry

Coca Cola Industry average

Year Coca Cola Industry average Immediate Competitor (Pepsi)

2009 0.14 0.12 0.15

2010 0.16 0.11 0.09

2011 0.11 0.09 0.09

FIN 340 Group Project | Consumer Goods Industry

FIN 340 Group Project | Consumer Goods Industry

FIN 340 Group Project | Technology

2010 NLB $6,948,000

2012 WCR $22,571,000

FIN 340 Group Project | Technology

2012 WCR Sales /revenue WCR/S $22,571,000 $156,508,000 0.144

2011 $14,945,000 $108,249,000 0.138

2010 $13,074,00 $65,225,000 0.200

FIN 340 Group Project | Technology

FIN 340 Group Project | Technology

0.195 0.19 0.185 0.18 0.175 0.17 0.165 2013 2012

FIN 340 Group Project | Technology