Financial Analysis: Financial Figures and Concepts

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Oevggnal_Pebjr

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Applied Managerial Finance

Colorado Technical University

Description

Course Scenario Attached & 2 other companies already selected.

Must have 2 References in APA format.

Assignment:

Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.

In anticipation of Mary’s request for comparative analysis, it will be useful at this time to do some research. You know that you can obtain the financials of companies within the same sector or Standard Industry Code as Apix Printing (e.g., commercial printing), and that the North American Industry Classification System (NAICS) Standard Industry 2012 code for Apix Printing is presently 323111 (Apix Financials Attached)..

Multi-Color Corporation (LABL)

ACCO Brands Corp. (ACCO)

When you get to work the next day, you see the following e-mail from Mary:

Here is the list of financial ratios you asked for. I need you to explain the computation of each and compute these for Apix’s results for the financial statements you are using for the PowerPoint presentation. Also, compare Apix’s 2-year trend results to that of two other firms in the sector. Indicate how each of Apix’s ratios differ, and indicate whether the two other companies’ ratios or Apix’s ratios are indicative of better performance.

Explain the computation for each of the following, and compute each for Apix and two other companies in the same industry as Apix Printing:

  • Current ratio
  • (Long-term) debt to equity ratio
  • Gross margin percentage
  • Net profit margin percentage
  • Return on equity percentage
Instructions:

This Assignment is to be a Word table. You will be doing 30 calculations of ratios: Apix plus two competitors, times five ratios, for each of two years. So long as the competitors years are the same, you can presume Apix's years as the same - information on competitor financials will probably be the latest two years of reporting (2016-2017).

Present your findings of the above data in a table. Add a paragraph that summarizes your results, indicating whether investors would find the financial analysis results of Apix competitive as compared to rivals in the sector. Be sure to include both positive and negative trends in your analysis.

Unformatted Attachment Preview

Apex Printing Balance Sheets As of December 31, 2013 and 2012 Assets Cash Accounts Receivable Inventory Total Current Assets Land Building & Equipment Less: Accumulated Depreciation - Building & Equipment Total Long Term Assets Total Assets 000$ 000$ 2013 6,000 2,350 12,100 20,450 2012 5,700 2,300 6,500 14,500 25,000 20,000 300,000 300,000 (187,850) (160,000) 137,150 160,000 157,600 174,500 Liabilities and Stockholders' Equity Accounts Payable Salaries Payable Interest Payable Short Term Notes Payable Taxes Payable Total Current Liabilities 4,600 0 1,500 12,000 0 18,100 3,500 2,100 0 0 5,600 11,200 Mortgate Payable Total Long Term Liabilities 54,950 54,950 100,000 100,000 60,000 24,550 84,550 157,600 60,000 3,300 63,300 174,500 Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Apex Printing Income Statements For the Periods Ended December 31, 2013 and 2012 Revenue: Less: Cost of Goods Sold Less: Depreciation Expense Gross Margin Selling, General & Administrative Expenses Income Before Interest & Taxes Interest Expense Income Before Taxes Income Taxes Net Income 000$ 000$ 2013 2012 450,000 475,000 (324,300) (374,500) (27,850) (26,000) 97,850 74,500 (29,100) (32,000) 68,750 42,500 (7,500) (6,000) 61,250 36,500 (35,000) (30,000) 26,250 6,500 Apex Printing Statement of Cash Flows For the Period Ended December 31, 2013 000$ Cash Flows from Operating Activities: Net Income Adjustments to reconcile net income to net cash provided by operating activities Depreciation Expense Increase in accounts receivable Increase in inventory Decrease in salaries payable Increase in interest payable Decrease in taxes payable Increase in Short Term notes Payable Increase in accounts payable Net Cash Flow from Operating Activities Cash Flows from Investing Activities: Cash paid to purchase land Net Cash Flow from Investing Activities 26,250 27,850 (50) (5,600) (2,100) 1,500 (5,600) 12,000 1,100 55,350 (5,000) (5,000) Cash Flows From Financing Activities: Cash paid for mortgage Cash paid for dividends Net Cash Flow from Financing Activities Net Increase in Cash Plus: Cash Balance at December 31, 2012 Cash Balance at December 31, 2013 (45,050) (5,000) (50,050) 300 5,700 6,000 Apix Printing, Inc. Apix Printing, Inc. is a private, domestic United States printer of periodicals, newspaper inserts, and advertising materials that accompany distributions of Sunday and weekday circulations of large metropolitan newspapers. The company, headed by chief executive officer (CEO) John Matthews, generates $450 million in revenues from three product lines (periodicals, inserts, and advertising) and has long-term contracts with several large U.S. retailers to produce weekly sales flyer inserts as well as metropolitan newspapers to produce Sunday magazine inserts and coupons. Its printing presses are characterized by offset print technology and are capable of high-capacity output; in addition, the company recently migrated to water-soluble inks, which considerably reduces manufacturing emissions. The company's executive team, employees, and above all, its vice president (VP) of Production, Luke Stewart, are committed to environmentally-sustainable manufacturing practices. Presently, the only substrate Apix uses is paper, specifically newsprint of various weights. Trim and waste are recycled in accordance with the company's sustainability commitment. Manufacturing divisions are geographically aligned with customers' locations to minimize logistics costs and response time to customer requirements; however, a centralized corporate entity administers functions such as human resources, information technology, and financial reporting. The VP of sales and administration, James Simeon, oversees administration and quality compliance among the various divisions. There are presently five manufacturing divisions: Northwest, Southwest, Northeast, Southeast, and Midwest. Currently, Apix is only marginally profitable, and as such, the chief financial officer (CFO), Mary Francis, has indicated that external financing will be required to support a company expansion into a new segment of the printing sector: food packaging. This endeavor will require new investments in equipment as well as substrate inventory, promotional costs will also increase. In addition, Timothy Russell, the new Audit Committee Chair, has pointed out that the company's compliance with the requirements of the Sarbanes-Oxley Act (SOX) will also cause administrative costs to increase. Following the requirements is paramount to successfully file a registration statement and to issue equity to shareholders in an initial public offering (IPO). As the newly hired VP of finance, you report to the CFO. In this capacity, your responsibilities include preparation of financial statements, comparative analysis and benchmarking to sector performance, and the assessment of new business investment opportunities to grow Apix's expansion endeavors in a challenging market.
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Explanation & Answer

hello check the attached paper and let me know if you require any adjustments made on the same.

Running Head; Apix Financial Comparative Analysis

Apix Financial Comparative Analysis
Student name
Course code and name
Instructor
Date

1

Apix Financial Comparative Analysis

2

Apix Financial Comparative Analysis
Company overview
Apex printing Inc. is an American based company that specializes in the printing of
different materials. According to Mary Francis, the company requires external financing to
support its expansion into new business segments. It is thereby essential to undertake a
comparative analysis on the financial statements and to benchmark to the industry performance,
and to determine whether the new business segment will be useful in growing the company’s
expansion plan in a competitive market.
Comparative analysis
The comparative analysis for the company will be completed using a ratio analysis to
evaluate the financial performance trend with respect to the previous years and the sector. The
ratio analysis is intended at giving an overview of the overall financial performance of the firm.
To compare the performance to the industry, Multi-color Corporation and ACCO Brand
Corporation have been selected. The financial statements for Multi-color Corp and ACCO Brand
have been obtained from https://finance.yahoo.com/quote/LABL/financials?p=LABL and
https://finance.yahoo.com/quote/ACCO/financials?p=ACCO respectively.
Ratio Analysis
Current ratio
The current ratio measures the ability of a business to pay off its short term liabilities
with its current assets. It is a ratio of the current assets to the current liabilities.
Current ratio = current assets / current liabilities

Apix Financial Comparative Analysis

3

Year 1

Year 2

APIX

1.29

1.13

Multi-Color Corp

1.80

1.76...


Anonymous
I was struggling with this subject, and this helped me a ton!

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