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Performance Ratios
Market Value Added (MVA):
MVA=(Company’s market value) minus(Invested capital)
Market to book=Market value of shares/Book value of shares
Data on market value are not available.
Hence the above performance ratios cannot be calculated
Profitability Ratios
Return on capital(ROC)=(Net Income –Dividend)/(Debt+Equity)
Dividend information is not available
Return on capital(ROC)=(Net Income)/Average (Debt+Equity)
Return on asset(ROA)=Net Income/(Average total asset)
Return on Equity(ROE)=Net Income/(Average Equity)
A
B
(A+B)/2
Dec 31 2015
Dec 31 2014
2015Average
C
Net income
5139
D
Debt
9246
8432
8839
E
Equity
11747
13142
12444.5
F
Debt+Equity
20993
21574
21283.5
G
Total asset
25707
25509
25608
H=C/F
Return on capital(ROC)
0.241454648
I=C/G
Return on asset(ROA)
0.200679475
J=C/E
Return on Equity(ROE)
0.412953514
Return on capital(ROC)
24.15%
Return on asset(ROA)
20.07%
Return on Equity(ROE)
41.30%
Efficiency Ratios
Profit margin=Net Profit/Sales
Operating Profit margin=Operating Profit/Sales
Asset turnover=Sales/Average Total Assets
Inventory turnover(cogs)=Cost of goods sold/Average total inventory
Days in inventory=365/inventory turnover(cogs)
Inventory turnover is also calculated from sales:
Inventory turnover (Sales)=Sales/average total inventory
Days sales in inventory=365/inventory turnover (sales)
A
B
(A+B)/2
Dec 31 2015
Dec 31 2014
2015Average
C
Net income
5139
D
Operating Income
6946
E
Sales
30274
F
Total assets
25707
25509
25608
G
Cost of goods sold
15383
H
Total inventory
3518
3706
3612
I=C/E
Profit margin
0.16974962
J=D/E
Operating Profit margin
0.229437801
K=E/F
Asset turnover
1.182208685
L=G/H
Inventory turnover(cogs)
4.258859358
M=365/L
Days in inventory
85.70369889
N=E/H
Inventory turnover (Sales)
8.381506091
P=365/N
Days sales in inventory
43.54825923
Profit margin
16.97%
Operating Profit margin
22.94%
Asset turnover
1.18220868
Inventory turnover(cogs)
4.25885936
Days in inventory
85.7036989
Days
Inventory turnover (Sales)
8.38150609
Days sales in inventory
43.5482592
Days
A
B
(A+B)/2
Dec 31 2015
Dec 31 2014
2015Average
C
Net income
5139
D
Debt
9246
8432
8839
E
Equity
11747
13142
12444.5
F
Debt+Equity
20993
21574
21283.5
G
Total asset
25707
25509
25608
H=C/F
Return on capital(ROC)
0.241454648
I=C/G
Return on asset(ROA)
0.200679475
J=C/E
Return on Equity(ROE)
0.412953514
Solution
Performance Ratios
Market Value Added (MVA):
MVA=(Company’s market value) minus(Invested capital)
Market to book=Market value of shares/Book value of shares
Data on market value are not available.
Hence the above performance ratios cannot be calculated
Profitability Ratios
Return on capital(ROC)=(Net Income –Dividend)/(Debt+Equity)
Dividend information is not available
Return on capital(ROC)=(Net Income)/Average (Debt+Equity)
Return on asset(ROA)=Net Income/(Average total asset)
Return on Equity(ROE)=Net Income/(Average Equity)
A
B
(A+B)/2
Dec 31 2015
Dec 31 2014
2015Average
C
Net income
5139
D
Debt
9246
8432
8839
E
Equity
11747
13142
12444.5
F
Debt+Equity
20993
21574
21283.5
G
Total asset
25707
25509
25608
H=C/F
Return on capital(ROC)
0.241454648
I=C/G
Return on asset(ROA)
0.200679475
J=C/E
Return on Equity(ROE)
0.412953514
Return on capital(ROC)
24.15%
Return on asset(ROA)
20.07%
Return on Equity(ROE)
41.30%
Efficiency Ratios
Profit margin=Net Profit/Sales
Operating Profit margin=Operating Profit/Sales
Asset turnover=Sales/Average Total Assets
Inventory turnover(cogs)=Cost of goods sold/Average total inventory
Days in inventory=365/inventory turnover(cogs)
Inventory turnover is also calculated from sales:
Inventory turnover (Sales)=Sales/average total inventory
Days sales in inventory=365/inventory turnover (sales)
A
B
(A+B)/2
Dec 31 2015
Dec 31 2014
2015Average
C
Net income
5139
D
Operating Income
6946
E
Sales
30274
F
Total assets
25707
25509
25608
G
Cost of goods sold
15383
H
Total inventory
3518
3706
3612
I=C/E
Profit margin
0.16974962
J=D/E
Operating Profit margin
0.229437801
K=E/F
Asset turnover
1.182208685
L=G/H
Inventory turnover(cogs)
4.258859358
M=365/L
Days in inventory
85.70369889
N=E/H
Inventory turnover (Sales)
8.381506091
P=365/N
Days sales in inventory
43.54825923
Profit margin
16.97%
Operating Profit margin
22.94%
Asset turnover
1.18220868
Inventory turnover(cogs)
4.25885936
Days in inventory
85.7036989
Days
Inventory turnover (Sales)
8.38150609
Days sales in inventory
43.5482592
Days
A
B
(A+B)/2
Dec 31 2015
Dec 31 2014
2015Average
C
Net income
5139
D
Debt
9246
8432
8839
E
Equity
11747
13142
12444.5
F
Debt+Equity
20993
21574
21283.5
G
Total asset
25707
25509
25608
H=C/F
Return on capital(ROC)
0.241454648
I=C/G
Return on asset(ROA)
0.200679475
J=C/E
Return on Equity(ROE)
0.412953514

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Performance RatiosMarket Value Added (MVA)MVA=(Company’s market.pdf

  • 1. Performance Ratios Market Value Added (MVA): MVA=(Company’s market value) minus(Invested capital) Market to book=Market value of shares/Book value of shares Data on market value are not available. Hence the above performance ratios cannot be calculated Profitability Ratios Return on capital(ROC)=(Net Income –Dividend)/(Debt+Equity) Dividend information is not available Return on capital(ROC)=(Net Income)/Average (Debt+Equity) Return on asset(ROA)=Net Income/(Average total asset) Return on Equity(ROE)=Net Income/(Average Equity) A B (A+B)/2 Dec 31 2015 Dec 31 2014 2015Average C Net income 5139 D Debt 9246 8432 8839 E Equity 11747 13142 12444.5 F Debt+Equity 20993 21574
  • 2. 21283.5 G Total asset 25707 25509 25608 H=C/F Return on capital(ROC) 0.241454648 I=C/G Return on asset(ROA) 0.200679475 J=C/E Return on Equity(ROE) 0.412953514 Return on capital(ROC) 24.15% Return on asset(ROA) 20.07% Return on Equity(ROE) 41.30% Efficiency Ratios Profit margin=Net Profit/Sales Operating Profit margin=Operating Profit/Sales Asset turnover=Sales/Average Total Assets Inventory turnover(cogs)=Cost of goods sold/Average total inventory Days in inventory=365/inventory turnover(cogs) Inventory turnover is also calculated from sales: Inventory turnover (Sales)=Sales/average total inventory Days sales in inventory=365/inventory turnover (sales) A B (A+B)/2 Dec 31 2015 Dec 31 2014 2015Average
  • 3. C Net income 5139 D Operating Income 6946 E Sales 30274 F Total assets 25707 25509 25608 G Cost of goods sold 15383 H Total inventory 3518 3706 3612 I=C/E Profit margin 0.16974962 J=D/E Operating Profit margin 0.229437801 K=E/F Asset turnover 1.182208685 L=G/H Inventory turnover(cogs) 4.258859358 M=365/L Days in inventory
  • 4. 85.70369889 N=E/H Inventory turnover (Sales) 8.381506091 P=365/N Days sales in inventory 43.54825923 Profit margin 16.97% Operating Profit margin 22.94% Asset turnover 1.18220868 Inventory turnover(cogs) 4.25885936 Days in inventory 85.7036989 Days Inventory turnover (Sales) 8.38150609 Days sales in inventory 43.5482592 Days A B (A+B)/2 Dec 31 2015 Dec 31 2014 2015Average C Net income 5139 D Debt 9246 8432
  • 5. 8839 E Equity 11747 13142 12444.5 F Debt+Equity 20993 21574 21283.5 G Total asset 25707 25509 25608 H=C/F Return on capital(ROC) 0.241454648 I=C/G Return on asset(ROA) 0.200679475 J=C/E Return on Equity(ROE) 0.412953514 Solution Performance Ratios Market Value Added (MVA): MVA=(Company’s market value) minus(Invested capital) Market to book=Market value of shares/Book value of shares Data on market value are not available. Hence the above performance ratios cannot be calculated Profitability Ratios Return on capital(ROC)=(Net Income –Dividend)/(Debt+Equity)
  • 6. Dividend information is not available Return on capital(ROC)=(Net Income)/Average (Debt+Equity) Return on asset(ROA)=Net Income/(Average total asset) Return on Equity(ROE)=Net Income/(Average Equity) A B (A+B)/2 Dec 31 2015 Dec 31 2014 2015Average C Net income 5139 D Debt 9246 8432 8839 E Equity 11747 13142 12444.5 F Debt+Equity 20993 21574 21283.5 G Total asset 25707 25509 25608 H=C/F Return on capital(ROC) 0.241454648
  • 7. I=C/G Return on asset(ROA) 0.200679475 J=C/E Return on Equity(ROE) 0.412953514 Return on capital(ROC) 24.15% Return on asset(ROA) 20.07% Return on Equity(ROE) 41.30% Efficiency Ratios Profit margin=Net Profit/Sales Operating Profit margin=Operating Profit/Sales Asset turnover=Sales/Average Total Assets Inventory turnover(cogs)=Cost of goods sold/Average total inventory Days in inventory=365/inventory turnover(cogs) Inventory turnover is also calculated from sales: Inventory turnover (Sales)=Sales/average total inventory Days sales in inventory=365/inventory turnover (sales) A B (A+B)/2 Dec 31 2015 Dec 31 2014 2015Average C Net income 5139 D Operating Income 6946 E Sales 30274
  • 8. F Total assets 25707 25509 25608 G Cost of goods sold 15383 H Total inventory 3518 3706 3612 I=C/E Profit margin 0.16974962 J=D/E Operating Profit margin 0.229437801 K=E/F Asset turnover 1.182208685 L=G/H Inventory turnover(cogs) 4.258859358 M=365/L Days in inventory 85.70369889 N=E/H Inventory turnover (Sales) 8.381506091 P=365/N Days sales in inventory 43.54825923 Profit margin 16.97%
  • 9. Operating Profit margin 22.94% Asset turnover 1.18220868 Inventory turnover(cogs) 4.25885936 Days in inventory 85.7036989 Days Inventory turnover (Sales) 8.38150609 Days sales in inventory 43.5482592 Days A B (A+B)/2 Dec 31 2015 Dec 31 2014 2015Average C Net income 5139 D Debt 9246 8432 8839 E Equity 11747 13142 12444.5 F Debt+Equity 20993
  • 10. 21574 21283.5 G Total asset 25707 25509 25608 H=C/F Return on capital(ROC) 0.241454648 I=C/G Return on asset(ROA) 0.200679475 J=C/E Return on Equity(ROE) 0.412953514