Supply Chain Vector [Electronic resources] : Methods for Linking the Execution of Global Business Models With Financial Performance نسخه متنی

اینجــــا یک کتابخانه دیجیتالی است

با بیش از 100000 منبع الکترونیکی رایگان به زبان فارسی ، عربی و انگلیسی

Supply Chain Vector [Electronic resources] : Methods for Linking the Execution of Global Business Models With Financial Performance - نسخه متنی

Daniel L. Gardner

نمايش فراداده ، افزودن یک نقد و بررسی
افزودن به کتابخانه شخصی
ارسال به دوستان
جستجو در متن کتاب
بیشتر
تنظیمات قلم

فونت

اندازه قلم

+ - پیش فرض

حالت نمایش

روز نیمروز شب
جستجو در لغت نامه
بیشتر
افزودن یادداشت
افزودن یادداشت جدید












NikoTech's Financial Statements

The income statement, balance sheet and cash flow statement in Tables 11.1, 11.2 and 11.3, respectively, are a reflection of the most recent two-year (Y1 and Y2) performance of the organization. To aid the analysis, 17 different ratios and calculations that will assist in evaluating NikoTech's financial health are listed in Table 11.4. Table 11.5 provides the Y1 and Y2 results of those ratios. All figures from the balance sheet, income statement and cash flow statement have been consolidated and simplified for ease of calculation. Based on a calendar year, the most recent year's balance sheet figures are interpreted as being indicative of the average figures for the preceding four quarters. To facilitate the study, it is recommended that the reader make a copy of each report, the formulas and the ratio results prior to beginning the analysis.



Table 11.1: NikoTech Year-to-Year Income Statements


























































Comparative Income Statement ($ in Millions)


Y2

$


Y2

Margin


Y2

% of Sales


Y1

$


Y1

Margin


Y1

% of Sales


$ Delta

Y1–Y2


% Delta

Y1–Y2


Sales


1,845


1,500


345


23.0%


Sales Returns and Allowances


147


8.0%


60


4.0%


87


145.0%


Net Sales


1,698


1,440


258


17.9%


Cost of Goods Sold


1,239



73.0%


990


68.8%


249


25.2%


Gross Profit


459


27.0%


450


31.3%


9


2.0%


Operating Expenses




General, Sales and Administrative




378


360


18


5.0%


EBITDA


81


4.8%


90


6.3%


-9


-10.0%


Nonoperating Income


3


6


-3


-50.0%


Depreciation


36


36


0


0.0%


Interest Expense [*]


27


18


9


50.0%


Income Before Taxes


21


1.2%


42


2.9%


-21


-50.0%


Income Taxes (40%)


8.4


16.8


-8.4


-50.0%


Net Income


12.6


0.7%


25.2


1.7%


-12.6


-50.0%


[*]Y1 interest expense of $18 million based on 3.75% of $480 million total. Y2 interest expense of $27 million based on 5% of $540 million total.




Table 11.2: NikoTech Year-to-Year Balance Sheets



















































































Notes: Depreciation is 15-year period, $36 million per year. The investment in plant and equipment was $60 million, funded by an additional $60 million in long-term debt. Retained earnings in Y0 were $37.8 million, in Y1 were $63 million ($37.8 million + $25.2 million) and in Y2 were $75.6 million ($63 million + $12.6 million).





Comparative Balance Sheet (in Millions)


Y2


Y1


$ Delta


Assets


Current Assets




Cash




87


264


-177.0




Marketable Securities




15


30


-15.0




Accounts Receivable




450


285


165.0




Inventory




660


480


180.0


Total Current Assets


1,212


1,059


153.0


Fixed Assets




Plant and Equipment




564


540


24.0


Total Assets


1,776


1,599


177.0


Liabilities


Current Liabilities




Accounts Payable




360


285


75.0




Other Current Liabilities




47.4


18


29.4


Total Current Liabilities


407.4


303


104.4


Long-Term Debt


540


480


60.0


Total Liabilities


947.4


783


164.4


Stockholders' Equity


Common Stock




$10 Par Value, 75,300,000 Shares




753


753


Retained Earnings


75.6


63


Total Stockholders' Equity


828.6


816


Total Liability and Stockholders' Equity


$1,776.0


$1,599




Table 11.3: NikoTech Cash Flow Statement


























































Y2 (in Millions)


Operating Activities


Net Income


$12.6


Depreciation


$36


Increase in Accounts Receivable


($165)


Increase in Accounts Payable


$75


Increase in Other Payables


$29.4


Increase in Inventories


($180)


Cash from Operating Activities


($192)


Investing Activities


Purchase of Fixed Assets


($60)


Sale of Marketable Securities


$15


Cash from Investing Activities


($45)


Financing Activities


Issuance of Long-Term Notes


$60


Cash from Financing Activities


$60


Net Decrease in Cash


($177)




Table 11.4: Ratios and Formulas for NikoTech Financial Analysis





























































Formula


Days of Inventory


Average Inventory/(Cost of Goods Sold/365)


Days of Receivables


Average Receivables/(Net Sales/365)


Operating Cycle


Days of Inventory + Days Receivable Outstanding


Days of Payables


Average Payables/(Cost of Goods Sold/365)


Cash-to-Cash Cycle


(Days of Inventory + Days of Receivables) - Days Payable Outstanding


Inventory Turnover


Cost of Goods Sold/Average Inventory


Receivables Turnover


Net Sales/Average Receivables


Payables Turnover


Cost of Goods Sold/Average Payables


Working Capital


Current Assets - Current Liabilities


Current Ratio


Current Assets/Current Liabilities


Acid Test


Current Assets (Less Inventory) - Current Liabilities


Inventory to Sales


Inventory/Net Sales


Receivables to Sales


Receivables/Net Sales


Working Capital to Sales


Working Capital/Net Sales


Operating Cash Flow to Net Income


Cash from Operating Activities/Net Income


Total Asset Turnover


Net Sales/Total Assets


Return on Investment


Net Income/Total Assets




Table 11.5: NikoTech Calculations for Y1 and Y2 Financial Ratios
































































$ in Millions


Y2


Y1


Delta


Days of Inventory


$660/($1,239/365) = 194 days


$480/($990/365) = 177 days


17 days


Days of Receivables


$450/($1,698/365) = 97 days


$285/($1,440/365) = 72 days


25 days


Operating Cycle


194 + 97 = 291 days


177 + 72 = 249 days


42 days


Days of Payables


$360/($1,239/365) = 106 days


$285/($990/365) = 105 days


1 day


Cash-to-Cash Cycle


(194 + 97) - 106 = 185 days


(177 + 72) - 105 = 144 days


41 days


Inventory Turnover


$1,239/$660 = 1.9 times


$990/$480 = 2.06 times


(0.15) times


Receivables Turnover


$1,698/$450 = 3.8 times


$1,440/$285 = 5.05 times


(1.25) times


Payables Turnover


$1,239/$360 = 3.44 times


$990/$285 = 3.47 times


(0.03) times


Working Capital


$1,212 - $407.4 = $804.6


$1,059 - $303 = $756


$48.60


Current Ratio


$1,212/$407.4 = 2.97 times


$1,059/$303 = 3.5 times


(0.53) times


Acid Test


$552/$407.4 = $1.35


$579/$303 = $1.91


($0.56)


Inventory to Sales


$660/$1,698 = $0.39


$480/$1,440 = $0.33


$0.06


Receivables to Sales


$450/$1,698 = $0.26


$285/$1,440 = $0.20


$0.06


Working Capital to Sales


$804.6/$1,698 = $0.47


$756/$1,440 = $0.52


($0.05)


Operating Cash Flow to Net Income


($192)/$12.6 = -$15.23


Total Asset Turnover


$1,698/$1,776 = $0.95


$1,440/$1,599 = $0.90


$0.05


Return on Investment


$12.6/$1,776 = 0.7%


$25.2/$1,599 = 1.6%


0.9%


/ 158