The following are the financial Statements for Tridell Inc.

Using the
Also, perform vertical analysis for each year as well as horizontal (tre
Finally, compare select ratios from 2015 to its biggest competitor Vo

STATEMENT OF FINANCIAL POSITION

2014
ASSETS
Cash & Equivalents $6,489
Accounts Receivable $1,048,991
Inventory $295,255
Other Current Assets $232,304
Total Current Assets $1,583,039

Net Fixed Assets $2,535,072

Total Assets $4,118,111

2014
LIABILITIES & EQUITY
LIABILITIES
Accounts Payable $340,220
Notes Payable $86,631
Other Current Liabilities $1,098,602
Total Current Liabilities $1,525,453
LT Debt $871,851
Total Liabilities $2,397,304

EQUITY
 Retained Earnings $0
Common Shares $1,720,807
Total Equity $1,720,807

Total Liabilities & Equity $4,118,111

FINANCIAL RATIOS

PROFITABILITY & RETURN RATIO 2014

Gross Profit Margin 59.3%
Operating Margin
Profit (net income) margin
Operating return on assets
Return on Assets (ROA)
Return on Capital
Return on Equity (ROE)
Earnings per Share

LIQUIDITY RATIOS 2014

Current Ratio
Quick Ratio
Cash Ratio
Working Capital

EFFICIENCY RATIOS 2014

 Total Asset Turnover
Fixed Asset Turnover
Days Sales Oustanding (DSO)
Inventory Turnover
Days Sales in inventory (DSI)
Accounts Payable Days (DPO)
Operating Cycle
Cash Conversion Cycle

LEVERAGE RATIOS 2014

COVERAGE RATIOS
Interest Coverage
Cash Coverage

COMPONENT PERCENTAGE RATIOS

Total Debt
Debt-to-Equity Ratio
Debt-to-Capital Ratio
Debt-to-Assets Ratio
Equity Multiplier

ADDITIONAL CALCULATIONS 2014

Tax Rate

DUPONT IDENTITY - ROE

Leverage Ratio (Equity Multiplier)
Asset Turnover
Net income Margin
Return on Equity
r Tridell Inc. Using the information provided below, calculate the required financial ra
as well as horizontal (trend) analysis for year-over year (YOY) change.
s biggest competitor Vought Industries, using the competitor ratios below.

OSITION VERTICAL ANALYSIS TREND

2015 2014 2015 2015

$3,171 0.2% 0.1%

$1,095,118 25.5% 22.2%
$388,947 7.2% 7.9%
$314,454 5.6% 6.4%
$1,801,690 38.4% 36.5%

$3,129,754 61.6% 63.5%

$4,931,444 100.0% 100.0%

2015

$313,286
$227,848
$1,239,651
$1,780,785
$1,389,615
$3,170,400
 $76,395
$1,684,649
$1,761,044

$4,931,444

2015
Gross Profit/Sales
Operating Income/Sales or EBIT/Sales
Net income/Sales
Operating Income/Total Assets
Net income/Total Assets
Net Income/(Interest-bearing debt + total equity)
net income/Equity
net income/outstanding shares

2015
Current assets/current liabilities
(Current assets - Inventory)/current liabilities
Cash/Current liabilities
Current assets - Current Liabilities

2015
 Sales/Total Assets
Sales/Fixed Assets
Accounts Receivable/(Sales/365)
COGS/Inventory or COGS/Average Inventory
365/inventory turnover
Accounts Payable/(COGS/365)
DSI + DSO
DSI + DSO - DPO

2015

EBIT/Interest
(EBIT+ Depreciation)/Interest

Total debt is interest-paying debt only (typically)

Total Debt/Total Equity
Total Debt/(Total Equity + Total Debt)
Total Debt/Total Assets
Total Assets/Total Equity

2015
Income taxes/Taxable Income
e the required financial ratios.
Y) change.
ratios below.

INCOME STATEMENT
2014
Revenues $4,100,000
COGS $1,620,000
Gross Profit $2,480,000
Operating Expenses $1,300,000
Depreciation $350,000
Operating Income (EBIT) $830,000
Interest Expense $40,000
Taxable Income (EBT) $790,000
Taxes $304,149
Net Income $485,851

Outstanding Shares 205,839

Dividends Paid $395,521

2015
Vought
Gross Profit Margin 52.0%
Profit Margin 15.0%
Current Ratio 0.50
Inventory Turnover 6.20
Debt-to-Assets Ratio 20.00%
 Vought vs Tridell - Profitability
60.0%
52.0%
50.0%

40.0%

30.0%

20.0%
15.0%

10.0%

0.0%
Gross Profit Margin Profit Margin

Vought Tridell

otal equity)
nventory

(typically)
 VERTICAL ANALYSIS TREND
2015 2014 2015 2015
$4,335,491 100.0% 100.0%
$1,762,721 39.5% 40.7%
$2,572,770 60.5% 59.3%
$1,390,262 31.7% 32.1%
$362,325 8.5% 8.4%
$820,183 20.2% 18.9%
$52,841 1.0% 1.2%
$767,342 19.3% 17.7%
$295,426 7.4% 6.8%
$471,916 11.9% 10.9%

205,839
$395,521

2015
Tridell B/W
dell - Profitability

15.0%

Profit Margin

ht Tridell