Description
My part (JOHNELLIE): Compare and contrast your company's ratios to industry and competitor standard ratios obtained from Yahoo Finance, Morningstar, MotleyFool, Macroaxis or other Internet sources also write 200 words summary of my comparison
Assignment Steps
Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office® website. There are also additional tutorials via the web that offer support for office products.
Select one of the publicly traded corporations listed below and obtain the most current SEC Form 10-K (annual financial report) from the company's web site (Do not use the Annual Report that is sent to shareholders):
- Lowes Corporation
- Kroger Corporation
- Harley Davidson Corporation
- Apple Corporation
- Intel Corporation
- Marriott Corporation
- Berkshire Hathaway Corporation
- PepsiCo Corporation
- Procter and Gamble Corporation
- General Electric Corporation
Calculate and analyze the following ratios for your selected company for the last two years from the SEC Form 10-K:
- Current Ratio
- Inventory Turnover
- Debt Ratio
- Time Interest Earned
- Gross Profit Margin
- Equity Multiplier
- Return on Assets
- Net Profit Margin
- Return on Equity (Use three ratio DuPont method)'
Explanation & Answer
Attached.
1) Current ratio
Total current assets
Total current liabilities
Current ratio
FY 2017
FY 2016
$
26,494,000.00 $
33,782,000.00
$
30,210,000.00 $
30,770,000.00
0.88
1.10
2) Inventory Turnover
Cost of goods sold
Ending inventory
Beginning inventory
Average inventory
Inventory turnover
FY 2017
$
32,535,000.00
$
4,624,000.00
$
4,716,000.00
$
4,670,000.00
6.97
FY 2016
$
32,909,000.00
$
4,716,000.00
$
4,979,000.00
$
4,847,500.00
6.79
3) Debt ratio
Total liabilities
Total assets
Debt ratio
FY 2017
FY 2016
$
65,222,000.00 $
69,795,000.00
$ 120,406,000.00 $
127,136,000.00
0.54
0.55
4) Time Interest Earned
EBIT
Interest
Time Interest earned
FY 2017
FY 2016
13,948,000.00
$
13,722,000.00 $
579,000.00
$
465,000.00 $
29.51
24.09
5) Gross profit margin
Gross profit
Revenue
Gross profit margin
FY 2017
FY 2016
$
32,523,000.00 $
32,390,000.00
$
32,390,000.00 $
65,299,000.00
1.00
0.50
6) Equity Multiplier
Total assets
Total Equity
Equity Multiplier
FY 2017
FY 2016
$ 120,406,000.00 $
127,136,000.00
$
55,184,000.00 $
57,341,000.00
2.18
2.22
7) Return on Assets
Net income
FY 2017
FY 2016
$
15,326,000.00 $
10,508,000.00
Total Assets
ROA
$
120,406,000.00 $
0.13
127,136,000.00
0.08
8) Net Profit Margin
Net Income
Net revenue
Net profit margin
FY 2017
FY 2016
$
15,326,000.00 $
10,508,000.00
65,299,000.00
$
65,058,000.00 $
0.24
0.16
9) Asset turnover
Total revenue
Total Asset
Asset turnover
FY 2017
FY 2016
65,299,000.00
$
65,058,000.00 $
$ 120,406,000.00 $
127,136,000.00
0.54
0.51
10)Return on Equity
FY 2017
Equity Multiplier
Net profit margin
Asset turnover
ROE
FY 2016
2.18
0.24
0.54
0.28
2.22
0.16
0.51
0.18
Running head: PROCTER AND GAMBLE CORPORATION
Procter and Gamble Corporation
Name
Institution
Date
1
PROCTER AND GAMBLE CORPORATION
2
Introduction
The P & G Corporation is a consumer producing company based in the USA and it main
headquarters are in Ohio State. The company was established in 1837 by W. Procter and J.
Gamble. Generally, the P & G Corporation d...
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