corporate finance solutions

Running Head: FINANCIAL STATEMENT ANALYSIS 1




FIN-7012 Corporate Finance

,FINANCIAL STATEMENT ANALYSIS 2




Financial Statement Analysis

FIN- 7012: Corporate Finance # 2


May 19th, 2018

, FINANCIAL STATEMENT ANALYSIS 3


1. Calculate all of the ratios listed in the industry table for East Coast Yachts.


Solution: Financial Ratios Calculations


Current Ratio
Current Assets 14,651,000 0.75 Times
Current Liabilities 19,539,000
0.44 Times
Quick Ratio Current Assets−Inventory 14,651,000−6,316,000
Current Liabilities 19,539,000
Total Asset 167,310,000 1.54 Times
Turnover Ratio Sales 108,615,000
Total Assets
Inventory Turnover 19.22Times
Ratio COGS 117,910,000
Inventory 6,136,000
Receivable 30.57 Times
Turnover Ratio Sales 167,310,000
Accounts Receivable 5,437,000
Debt Ratio 0.49 Times
Total Assets−Total Equity 108,615,000−55,342,000
Total Assets 108,615,000
Debt-Equity Ratio 53,274,000 0.96 Times
Total Debt 55,341,000
Total Equity
Equity Multiplier Total Assets 1.96 Times
Total Equity 108,615,000
55,341,000
Interest Coverage 7.96 Times
EBIT 23,946,000
Interest 3,009,000
Profit Margin 7.51%
Net Income 12,562,200
Sales 167,310,000
Return on Assets 11.57%
Net Income 12,562,200
Total Assets 108,615,000
Return on Equity 12,562,200 22.70%
Net Income 55,341,000
Total Equity

Source of Formulas: (Ross, Westerfield, & Jaffe, 2013).