Balance sheet

Assets 1997 1998 1999 2000

cash $155,000 $309,099 $75,948 $28,826
AR $10,000 $12,000 $20,000 $77,653
Inventory $250,000 $270,000 $500,000 $520,000
total Curr Assets $415,000 $591,099 $595,948 $626,479

PPE $250,000 $250,000 $500,000 $500,000

accum depr ($25,000) ($50,000) ($100,000) ($150,000)
Net fixed assets $225,000 $200,000 $400,000 $350,000
TOTAL ASSETS $640,000 $791,099 $995,948 $976,479

Liabilities and Equities

Short term Loans $50,000 $145,000 $140,000 $148,000
Accounts Payable $10,000 $10,506 $19,998 $15,995
Accruals $5,000 $5,100 $7,331 $9,301
Current Liab. $65,000 $160,606 $167,329 $173,296

Long Term Loans $63,366 $98,000 $196,000 $190,000

Mortgage $175,000 $173,000 $271,000 $268,000
Total Long Term Debt $238,366 $271,000 $467,000 $458,000
TOTAL LIABILITES $303,366 $431,606 $634,329 $631,296

common stock $320,000 $320,000 $320,000 $320,000

ret earnings $16,634 $39,493 $41,619 $25,184
TOTAL EQUITY $336,634 $359,493 $361,619 $345,184

liabilties + equity $640,000 $791,099 $995,948 $976,480

Income statement
1997 1998 1999 2000
net sales $600,000 $655,000 $780,000 $873,600
1.092 1.191 1.12
Cost of Goods Sold $480,000 $537,100 $655,200 $742,560
gross profit $120,000 $117,900 $124,800 $131,040

admin and selling exp $30,000 $15,345 $16,881 $43,680

depreciation $25,000 $25,000 $50,000 $50,000
misc expenses $2,027 $3,557 $5,725 $17,472
total operating exp $57,027 $43,902 $72,606 $111,152

EBIT $62,973 $73,998 $52,194 $19,888

1.175 0.705 0.381
interest on Short Term Loans $15,000 $15,950 $14,000 $13,320
Interest on Long Term Loans $8,000 $7,840 $15,680 $15,200
interest on mortgage $12,250 $12,110 $18,970 $18,760
total interest $35,250 $35,900 $48,650 $47,280

before tax earnings $27,723 $38,098 $3,544 ($27,392)

taxes $11,089 $15,239 $1,418 ($10,957)

Net income $16,634 $22,859 $2,126 ($16,435)

Dividends on stock 0 0 0

Additions to
retained earnings $16,634 $22,859 $2,126 ($16,435) ($102)

EPS (100,000 shares) 0.17 $0.23 $0.02 ($0.16) ($0.00)

The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where
years in the period being considered.

CAGR isn't the actual return in reality. It's an imaginary number that describes the rate at which an investment wou
grew at a steady rate. You can think of CAGR as a way to smooth out the returns.

CAGR would be the ratio of your ending value to beginning valuelike for Sales ($1013376 / $600000 ) raised to the
subtracting 1 from the resulting number:

Thus, your CAGR for your five-year sales is equal to 11.05%, representing the smoothed annualized gain you earn
investment time horizon.

Similarly CAGR for EBIT which is negative -5.98% and Net income is -136.1%
 2001
$18,425
$90,078
$560,000
$668,503

$500,000
($200,000)
$300,000
$968,503

$148,000
$16,795
$11,626
$176,421

$183,000
$264,000
$447,000
$623,421

$320,000
$25,082
$345,082

$968,503

2001 CAGR
$1,013,376
1.16 11.05%
$861,370
$152,006

$40,535
$50,000
$15,201
$105,736

$46,270 -5.98%
2.327
$13,320
 $14,640
$18,480
$46,440

($170)

($68)

($102) -136.10%

0 0

($16,435) ($102)

($0.16) ($0.00)

ntage growth rate, where n is the number of

t which an investment would have grown if it

6 / $600000 ) raised to the power of 1/5 then

annualized gain you earned over your

 Liquidity ratios
2000
• The Current Ratio = Current Assets/ Current Liabilities 6.385

• Quick (Acid Test) Ratio = Current Assets – Inventories / Current Assets 2.538

Profitability Ratios

Gross Margin on Sales 20.000%

Gross Operating margin
Sales

Net Profit Margin

Net Profit after taxes 2.772%
Sales

Return on Equity 4.941%

Net profit after tax
Equity

LONG TERM SOLVENCY RATIOS

LONG TERM Debt to Assets Ratio 0.372
LONG TERM Debt
Total Assets

Interest Coverage Ratio 1.786

EBIT(Earnings Before Interest & Taxes)
Interest Expense

ASSET UTILIZATION RATIO

Total Asset Turnover

Sales 0.938
Total Assets

Inventory Turnover ratio

Cost of goods Sold 1.920

Inventory
 Accounts receivableTurnover ratio

Sales 60.000
Accounts Receivable
 2001 2002 2003 2004
3.680 3.562 3.615 3.789

1.999 0.573 0.614 0.615

18.000% 16.000% 15.000% 15.000%

3.490% 0.273% -1.881% -0.010%

6.359% 0.588% -4.761% -0.030%

0.343 0.469 0.469 0.462

2.061 1.073 0.421 0.996

0.828 0.783 0.895 1.046

1.989 1.310 1.428 1.538

54.583 39.000 11.250 11.250