Showing Page:
1/8
FINANCIAL RATIOS FOR ALDER PROPERTIES
Liquidity ratios
Current Ratio = Current Assets ÷ Current Liabilities
Current Ratio (2020) = 20,364,009,000/ 6,360,384,000
= 3.20
Previous Ratio (2019) = 20,294,327,000/7,409,950,000
= 2.74
Quick (Acid-Test) Ratio = (Current Assets Current Liabilities) ÷ Current Liabilities
Quick (Acid-Test) Ratio (2019) = (20,294,327,000-7,409,950,000)/ 7,409,950,000= 1.74
Quick (Acid-Test) Ratio (2020) = (20,364,009,000/ 6,360,384,000= 2.20
Activity ratios
Average payment period
Average payment period=Accounts payable / (Annual purchases/365)
Average Accounts payable= (beginning accounts payable+ closing accounts payable)/2
= (1,184,000,000+845,000,000)/2
=1,014,500,000
Annual credit purchases= 634,000,000
Divided by 365 = 1,736,986.30
Therefore, the average payment period for 2020 = (1,014,500,000÷1,736,986.30)
= 584 days
For 2019;
Average payment period=Accounts payable / (Annual purchases/365)
Average Accounts payable= (beginning accounts payable+ closing accounts payable)/2
= (845,000,000+71,000,000)/2
=458,000,000
Annual credit purchases= 180,000,000
Showing Page:
2/8
Divided by 365 = 493,150.68
Therefore, the average payment period for 2019 = (458,000,000÷495,150.68)
= 925 days
Inventory turnover
Inventory Turnover = Cost of Goods Sold ÷ Inventory
For 2020; (2,382,000,000÷188,000,000)
=12.67
Average Age of Inventory = Inventory Turnover ÷ 365
Average inventory for 2020 = 0.03
Inventory turnover (2019) = (2,262,000,000÷1,075,000,000)
= 2.1
Average Age of Inventory = Inventory Turnover ÷ 365
= 0.01
Average Collection Period
Average Collection Period= Accounts Receivable ÷ (Annual Sales ÷ 365)
Average Collection Period (2020) = 614,000,000/ (2,382,000,000/365)
= 463.26
Average Collection Period (2019) = 1,003,000,000/ (2,262,000,000/365)
= 161.85
Total Asset Turnover
Total asset turnover= Sales ÷ Total Assets
Total asset turnover (2020) = 2,382,000,000/40.232,648,000 =0.06
Total asset turnover (2019) = 2,262,000,000/41,266,723,000 = 0.06
DEBT RATIOS
Debt Ratio = Total Liabilities ÷ Total Assets
Debt ratio (2020) = 14,530,963,000 / 40,232,648,000= 0.36
Showing Page:
3/8
Debt ratio (2019) = 16,315,473,000/ 41,266,723,000 = 0.40
Debt-to-Equity Ratio
Debt-to-Equity Ratio = Total Liabilities ÷ Common Stock Equity
Debt-to-Equity Ratio (2020) = 14,530,963,000/ 25,630,793,000 = 0.57
Debt-to-Equity Ratio (2019) = 16,315,473,000/24,837,506,000 = 0.66
Profitability Ratios
Gross Profit Margin = Gross Profits ÷ Sales
Gross Profit Margin (2020) = 2,983,032,000/ 2,382,000,000= 1.25
Gross Profit Margin (2019) = 2,769,644,000/ 2,262,000,000= 1.22
Operating Profit Margin
Operating Profit Margin = Operating Profit ÷ Sales
Operating Profit Margin (2020) = 1,932,228,000/ 2,382,000,000 = 0.81
Operating Profit Margin (2019) = 1,925,179,000/ 2,262,000,000 = 0.85
Earnings per Share (EPS)
Earnings per Share (EPS) = earnings available for standard shareholder/ number of shares of
common stock outstanding
Earnings per Share (EPS) for 2020 = 0.246
Earnings per Share (EPS) for 2019 = 0.252
Return on Total Assets (ROA)
Return on Total Assets (ROA) = earnings available for common shareholder/Total assets
Return on Total Assets (2020)= 1,932,228,000/40.232,648,000= 0.05
Return on Total Assets (2019)= 1,925,179,000/41,266,723,000= 0.05
Return on Equity ratio
Return on Equity =Earnings available for consumer stockholder/number of shares of common
stockholder
Return on Equity (2020) = 7.66
FINANCIAL RATIOS FOR RAK PROPERTIES
Liquidity ratios
Current Ratio = Current Assets ÷ Current Liabilities
Showing Page:
4/8
Current Ratio (2018) = 846372/ 804638
= 1.052
Current Ratio (2019) = 958544/ 781379
= 1.227
Quick (Acid-Test) Ratio = (Current Assets Current Liabilities) ÷ Current Liabilities
Quick (Acid-Test) Ratio (2018) = (846372-804638)/ 804638= 0.052
Quick (Acid-Test) Ratio (2019) = (958544-781379/ 781379=0.2267
Activity ratios
Average payment period
Average payment period=Accounts payable / (Annual purchases/365)
Average payment period (2018) = 17968 / (56017/365)
= 117.077
Average payment period (2019) = 31410 / (134424/365)
=85.2872
Inventory turnover
Inventory Turnover = Cost of Goods Sold ÷ Inventory
Showing Page:
5/8
Average Age of Inventory = Inventory Turnover ÷ 365
Average inventory for 2018= 609/365 = 1.668
Inventory turnover (2018) = 55570/1.668=33315.35
Average inventory for 2019= 758/365 = 2.077
Inventory turnover (2019) = 133815/2.077=64427.06
Average Collection Period
Average Collection Period= Accounts Receivable ÷ (Annual Sales ÷ 365)
Average Collection Period (2018) = 128687/ (101391/365)
= 463.26
Average Collection Period (2019) = 181819/ (192423/365) =344.89
Total Asset Turnover
Total asset turnover= Sales ÷ Total Assets
Total asset turnover (2018) = 101391/5341076 =0.019
Total asset turnover (2019) = 192423/5678139 = 0.034
DEBT RATIOS
Debt Ratio = Total Liabilities ÷ Total Assets
Debt ratio (2018) = 1527619/ 5341076= 0.286
Debt ratio (2019) = 1773173/ 5678139 = 0.312
Debt-to-Equity Ratio
Debt-to-Equity Ratio = Total Liabilities ÷ Common Stock Equity
Showing Page:
6/8
Debt-to-Equity Ratio (2018) = 1527619 / 3813457 = 0.401
Debt-to-Equity Ratio (2019) = 1773173 / 3904966 = 0.454
Times interest earned ratio
Times interest earned ratio= earnings before interest and taxes /interest expenses
Times interest earned ratio (2018) = 173087/3377
=51.25
Times interest earned ratio (2019) =95750/6238
=15.35
Fixed payment Coverage Ratio
Fixed payment Coverage ratio=Earnings before interest and taxes +lease
payments/ {{interest + lease payments + {(principal payments + preferred stock dividends)
*(1/1-T)}}
Fixed payment coverage ratio (2019) =519121/ (15283+ (1099+31410+ (1-1/0.034)
=519183/47763
=10.87
Fixed payment coverage ratio (2018) =670020/13678+ (3626+17968+ (1-1/0.019)
=670020/35220.37
=19.02
Profitability Ratios
Showing Page:
7/8
Gross Profit Margin = Gross Profits ÷ Sales
Gross Profit Margin (2018) = 45821/ 101391= 0.452
Gross Profit Margin (2019) = 58608 / 192423= 0.305
Operating Profit Margin
Operating Profit Margin = Operating Profit ÷ Sales
Operating Profit Margin (2018) =173087/ 101391 = 1.707
Operating Profit Margin (2019) = 95750/ 192423 = 0.498
NET PROFIT MARGIN
Net Profit Margin = Earnings Available for Common Stockholders ÷ Sales
Net Profit Margin (2018) = 5263/ 101391 = 0.052
Net Profit Margin (2019) = 4000 / 192423 = 0.021
Earnings per Share (EPS)
Earnings per Share (EPS) = earnings available for common shareholder/ number of shares of
common stock outstanding
Earnings per Share (EPS) for 2018 = 0.08
Earnings per Share (EPS) for 2019 = 0.05
Return on Total Assets (ROA)
Return on Total Assets (ROA) = earnings available for common shareholder/Total assets
Return on Total Assets (2018) = 5263 / 5341076 = 0.000985
Return on Total Assets (2019) = 4000 / 5678139 = 0.000704
Showing Page:
8/8
Return on Equity ratio
Return on Equity =Earnings available for consumer stockholder/number of shares of common
stock holder
Return on Equity (2018) = 519121/1000000
= 0.2596
Return on Equity (2019) =670020/2000000
= 0.33501

Unformatted Attachment Preview

FINANCIAL RATIOS FOR ALDER PROPERTIES Liquidity ratios Current Ratio = Current Assets ÷ Current Liabilities Current Ratio (2020) = 20,364,009,000/ 6,360,384,000 = 3.20 Previous Ratio (2019) = 20,294,327,000/7,409,950,000 = 2.74 Quick (Acid-Test) Ratio = (Current Assets – Current Liabilities) ÷ Current Liabilities Quick (Acid-Test) Ratio (2019) = (20,294,327,000-7,409,950,000)/ 7,409,950,000= 1.74 Quick (Acid-Test) Ratio (2020) = (20,364,009,000/ 6,360,384,000= 2.20 Activity ratios Average payment period Average payment period=Accounts payable / (Annual purchases/365) Average Accounts payable= (beginning accounts payable+ closing accounts payable)/2 = (1,184,000,000+845,000,000)/2 =1,014,500,000 Annual credit purchases= 634,000,000 Divided by 365 = 1,736,986.30 Therefore, the average payment period for 2020 = (1,014,500,000÷1,736,986.30) = 584 days For 2019; Average payment period=Accounts payable / (Annual purchases/365) Average Accounts payable= (beginning accounts payable+ closing accounts payable)/2 = (845,000,000+71,000,000)/2 =458,000,000 Annual credit purchases= 180,000,000 Divided by 365 = 493,150.68 Therefore, the average payment period for 2019 = (458,000,000÷495,150.68) = 925 days Inventory turnover Inventory Turnover = Cost of Goods Sold ÷ Inventory For 2020; (2,382,000,000÷188,000,000) =12.67 Average Age of Inventory = Inventory Turnover ÷ 365 Average inventory for 2020 = 0.03 Inventory turnover (2019) = (2,262,000,000÷1,075,000,000) = 2.1 Average Age of Inventory = Inventory Turnover ÷ 365 = 0.01 Average Collection Period Average Collection Period= Accounts Receivable ÷ (Annual Sales ÷ 365) Average Collection Period (2020) = 614,000,000/ (2,382,000,000/365) = 463.26 Average Collection Period (2019) = 1,003,000,000/ (2,262,000,000/365) = 161.85 Total Asset Turnover Total asset turnover= Sales ÷ Total Assets Total asset turnover (2020) = 2,382,000,000/40.232,648,000 =0.06 Total asset turnover (2019) = 2,262,000,000/41,266,723,000 = 0.06 DEBT RATIOS Debt Ratio = Total Liabilities ÷ Total Assets Debt ratio (2020) = 14,530,963,000 / 40,232,648,000= 0.36 Debt ratio (2019) = 16,315,473,000/ 41,266,723,000 = 0.40 Debt-to-Equity Ratio Debt-to-Equity Ratio = Total Liabilities ÷ Common Stock Equity Debt-to-Equity Ratio (2020) = 14,530,963,000/ 25,630,793,000 = 0.57 Debt-to-Equity Ratio (2019) = 16,315,473,000/24,837,506,000 = 0.66 Profitability Ratios Gross Profit Margin = Gross Profits ÷ Sales Gross Profit Margin (2020) = 2,983,032,000/ 2,382,000,000= 1.25 Gross Profit Margin (2019) = 2,769,644,000/ 2,262,000,000= 1.22 Operating Profit Margin Operating Profit Margin = Operating Profit ÷ Sales Operating Profit Margin (2020) = 1,932,228,000/ 2,382,000,000 = 0.81 Operating Profit Margin (2019) = 1,925,179,000/ 2,262,000,000 = 0.85 Earnings per Share (EPS) Earnings per Share (EPS) = earnings available for standard shareholder/ number of shares of common stock outstanding Earnings per Share (EPS) for 2020 = 0.246 Earnings per Share (EPS) for 2019 = 0.252 Return on Total Assets (ROA) Return on Total Assets (ROA) = earnings available for common shareholder/Total assets Return on Total Assets (2020)= 1,932,228,000/40.232,648,000= 0.05 Return on Total Assets (2019)= 1,925,179,000/41,266,723,000= 0.05 Return on Equity ratio Return on Equity =Earnings available for consumer stockholder/number of shares of common stockholder Return on Equity (2020) = 7.66 FINANCIAL RATIOS FOR RAK PROPERTIES Liquidity ratios Current Ratio = Current Assets ÷ Current Liabilities Current Ratio (2018) = 846372/ 804638 = 1.052 Current Ratio (2019) = 958544/ 781379 = 1.227 Quick (Acid-Test) Ratio = (Current Assets – Current Liabilities) ÷ Current Liabilities Quick (Acid-Test) Ratio (2018) = (846372-804638)/ 804638= 0.052 Quick (Acid-Test) Ratio (2019) = (958544-781379/ 781379=0.2267 Activity ratios Average payment period Average payment period=Accounts payable / (Annual purchases/365) Average payment period (2018) = 17968 / (56017/365) = 117.077 Average payment period (2019) = 31410 / (134424/365) =85.2872 Inventory turnover Inventory Turnover = Cost of Goods Sold ÷ Inventory Average Age of Inventory = Inventory Turnover ÷ 365 Average inventory for 2018= 609/365 = 1.668 Inventory turnover (2018) = 55570/1.668=33315.35 Average inventory for 2019= 758/365 = 2.077 Inventory turnover (2019) = 133815/2.077=64427.06 Average Collection Period Average Collection Period= Accounts Receivable ÷ (Annual Sales ÷ 365) Average Collection Period (2018) = 128687/ (101391/365) = 463.26 Average Collection Period (2019) = 181819/ (192423/365) =344.89 Total Asset Turnover Total asset turnover= Sales ÷ Total Assets Total asset turnover (2018) = 101391/5341076 =0.019 Total asset turnover (2019) = 192423/5678139 = 0.034 DEBT RATIOS Debt Ratio = Total Liabilities ÷ Total Assets Debt ratio (2018) = 1527619/ 5341076= 0.286 Debt ratio (2019) = 1773173/ 5678139 = 0.312 Debt-to-Equity Ratio Debt-to-Equity Ratio = Total Liabilities ÷ Common Stock Equity Debt-to-Equity Ratio (2018) = 1527619 / 3813457 = 0.401 Debt-to-Equity Ratio (2019) = 1773173 / 3904966 = 0.454 Times interest earned ratio Times interest earned ratio= earnings before interest and taxes /interest expenses Times interest earned ratio (2018) = 173087/3377 =51.25 Times interest earned ratio (2019) =95750/6238 =15.35 Fixed payment Coverage Ratio Fixed payment Coverage ratio=Earnings before interest and taxes +lease payments/ {{interest + lease payments + {(principal payments + preferred stock dividends) *(1/1-T)}} Fixed payment coverage ratio (2019) =519121/ (15283+ (1099+31410+ (1-1/0.034) =519183/47763 =10.87 Fixed payment coverage ratio (2018) =670020/13678+ (3626+17968+ (1-1/0.019) =670020/35220.37 =19.02 Profitability Ratios Gross Profit Margin = Gross Profits ÷ Sales Gross Profit Margin (2018) = 45821/ 101391= 0.452 Gross Profit Margin (2019) = 58608 / 192423= 0.305 Operating Profit Margin Operating Profit Margin = Operating Profit ÷ Sales Operating Profit Margin (2018) =173087/ 101391 = 1.707 Operating Profit Margin (2019) = 95750/ 192423 = 0.498 NET PROFIT MARGIN Net Profit Margin = Earnings Available for Common Stockholders ÷ Sales Net Profit Margin (2018) = 5263/ 101391 = 0.052 Net Profit Margin (2019) = 4000 / 192423 = 0.021 Earnings per Share (EPS) Earnings per Share (EPS) = earnings available for common shareholder/ number of shares of common stock outstanding Earnings per Share (EPS) for 2018 = 0.08 Earnings per Share (EPS) for 2019 = 0.05 Return on Total Assets (ROA) Return on Total Assets (ROA) = earnings available for common shareholder/Total assets Return on Total Assets (2018) = 5263 / 5341076 = 0.000985 Return on Total Assets (2019) = 4000 / 5678139 = 0.000704 Return on Equity ratio Return on Equity =Earnings available for consumer stockholder/number of shares of common stock holder Return on Equity (2018) = 519121/1000000 = 0.2596 Return on Equity (2019) =670020/2000000 = 0.33501 Name: Description: ...
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4