Industry averages and financial ratios paper

Watch the Industry Averages and Financial Ratios video and use the industry classification from the financial services website to locate the company’s SIC code on the U.S. Department of Labor’s website.

 

Find the industry ratios for the company using the Dun & Bradstreet® Key Business Ratios link in the Week 2 Electronic Reserve Readings. If your company’s SIC code does not appear in the dropdown menu, choose another company.

 

Assume the inventory ratio is based on a traditional inventory system, but globalized markets and the supply chain make it critical to adopt lean principles to create a more efficient system.

 

Calculate the 14 ratios (show your calculations) for the company using the two most recent annual financial statements found on the financial information website you used earlier. Be careful not to use quarterly information, and include ratios for both years.

 

Note. You can access a downloadable Ratio Guide PDF by clicking the Help Guide link in the upper-right of the Dun & Bradstreet® Key Business Ratios window.

 

Compare the ratios for the company you selected with the appropriate industry ratios including profitability, solvency, and efficiency ratios shown on the Dun & Bradstreet® report.

 

Write a 350-word response about how the company you selected performed compared with the industry.

 

 

 Company Quartiles  2009     2010     2011    
 Statement Sampling  Samples: 0   Samples: 0   Samples: 0  
 Profitability & Return Measures  Upper Median Lower Upper Median Lower Upper Median Lower  
Gross Margin (%)                      
Net Profit Margin (%)                    
Return on Equity (%)                    
Return on Capital (%)                    
Return on Assets (%)                    
 Solvency  Upper Median Lower Upper Median Lower Upper Median Lower  
Long Term Debt / Capital                    
Long Term Debt / Equity                    
Total Debt / Total Capital                    
Net Debt / Equity                      
Financial Leverage Ratio                    
Total Debt / Common Equity                    
Total Capital                      
 Liquidity  Upper Median Lower Upper Median Lower Upper Median Lower  
Current Ratio                      
Quick Ratio                      
 Working Capital  Upper Median Lower Upper Median Lower Upper Median Lower  
Net Working Capital                    
Days Receivable (DSO)                    
 Management Effectiveness  Upper Median Lower Upper Median Lower Upper Median Lower  
Asset Turnover                      
Receivable Turnover                    
Plant & Equipment Turnover                    
Sales / Net Working Capital (times)                    
Sales / Cash                      
Sales / Inventory                      
Sales / Working Capital                    
Sales / Fixed Assets                      
 Bank & Insurance Ratios  Upper Median Lower Upper Median Lower Upper Median Lower  
Total Equity / Total Assets (Banks)                    
Long Term Debt / Equity                    
Net Profit Margin (%)                    
Median Variance                     
 Profitability & Return Measures  Median 2010 2011 Median 2009 2011 Median 2009 2010  
Gross Margin (%) 0 0 0 0 0 0 0 0 0  
Net Profit Margin (%) 0 0 0 0 0 0 0 0 0  
Return on Equity (%) 0 0 0 0 0 0 0 0 0  
Return on Capital (%) 0 0 0 0 0 0 0 0 0  
Return on Assets (%) 0 0 0 0 0 0 0 0 0  
 Solvency  Median 2010 2011 Median 2009 2011 Median 2009 2010  
Long Term Debt / Capital 0 0 0 0 0 0 0 0 0  
Long Term Debt / Equity 0 0 0 0 0 0 0 0 0  
Total Debt / Total Capital 0 0 0 0 0 0 0 0 0  
Net Debt / Equity 0 0 0 0 0 0 0 0 0  
Financial Leverage Ratio 0 0 0 0 0 0 0 0 0  
Total Debt / Common Equity 0 0 0 0 0 0 0 0 0  
Total Capital 0 0 0 0 0 0 0 0 0  
 Liquidity  Median 2010 2011 Median 2009 2011 Median 2009 2010  
Current Ratio 0 0 0 0 0 0 0 0 0  
Quick Ratio 0 0 0 0 0 0 0 0 0  
 Working Capital  Median 2010 2011 Median 2009 2011 Median 2009 2010  
Net Working Capital 0 0 0 0 0 0 0 0 0  
Days Receivable (DSO) 0 0 0 0 0 0 0 0 0  
 Management Effectiveness  Median 2010 2011 Median 2009 2011 Median 2009 2010  
Asset Turnover 0 0 0 0 0 0 0 0 0  
Receivable Turnover 0 0 0 0 0 0 0 0 0  
Plant & Equipment Turnover 0 0 0 0 0 0 0 0 0  
Sales / Net Working Capital (times) 0 0 0 0 0 0 0 0 0  
Sales / Cash 0 0 0 0 0 0 0 0 0  
Sales / Inventory 0 0 0 0 0 0 0 0 0  
Sales / Working Capital 0 0 0 0 0 0 0 0 0  
Sales / Fixed Assets 0 0 0 0 0 0 0 0 0  
 Bank & Insurance Ratios  Median 2010 2011 Median 2009 2011 Median 2009 2010  
Total Equity / Total Assets (Banks) 0 0 0 0 0 0 0 0 0  
Long Term Debt / Equity 0 0 0 0 0 0 0 0 0  
Net Profit Margin (%) 0 0 0 0 0 0 0 0 0  
                     
                     
                     

 

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