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Ratio analysis compute the ratios below for blue bill

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Reference no: EM13575443

Ratio Analysis Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventory was $1,237.6 for year 2010. After calculating the various ratios, analyze the overall financial health of Blue Bill Corporation. Values presented on the financial statements are in millions.

 

Blue Bill Corporation
Balance Sheet
December 31, 2011
Assets

Liabilities and Shareholders' Equity
Current Assets

Current liabilities
Cash and cash equivalents $     483.2
Short-term debt $      43.4
Receivables (net of allowance)      1,045.1
Long-term debt due within a year        151.6
Inventories      1,249.4
Accounts payable      1,007.7
Other current assets        273.5
Other accrued liabilities        972.7
Total current assets      3,051.2
Total current liabilities      2,175.4
Property, plan and equipment



Land          77.1
Long-term liabilities
Buildings        842.4
Long-term debt      4,559.4
Equipment      3,546.0
Deferred taxes        665.3
Less accumulated depreciation      2,373.7
Other long-term liabilities        784.2
Total property, plant and equipment      2,091.8
Total long-term liabilities      6,008.9
Other noncurrent assets      4,932.6
Shareholders' equity      1,891.3
Total assets $10,075.6
Total liabilities and shareholders' equity $10,075.6





Blue Bill Corporation
Income Statement
2011
Sales $10,495.0
Cost of products sold      6,700.5
Gross Profit      3,794.5
Selling and administrative expense      2,350.9
Operating income      1,443.6
Other income        (18.3)
Earnings before interest and taxes      1,425.3
Interest expense        295.2
Taxes        247.8
Net income $     882.3





Ratio analysis
Liquidity ratios:
Current ratio
Quick ratio


Activity ratios:
Inventory turnover
Receivables turnover
Days sales outstanding
Fixed asset turnover
Total asset turnover


Profitability ratios:
Gross profit margin
Operating profit margin
Net profit margin
Return on assets
Return on equity


Leverage ratios:
Debt / Net worth
Debt ratio


Coverage ratios:
Times-interest-earned




























Reference no: EM13575443

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