Ratio Analysis
Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventory was $1,237.6 for year 2010.
After calculating the various ratios, analyze the overall financial health of Blue Bill Corporation.
Values presented on the financial statements are in millions.
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Blue Bill Corporation
Balance Sheet
December 31, 2011
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Assets
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Liabilities and Shareholders' Equity
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Current Assets
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Current liabilities
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Cash and cash equivalents
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$ 483.2
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Short-term debt
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$ 43.4
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Receivables (net of allowance)
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1,045.1
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Long-term debt due within a year
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151.6
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Inventories
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1,249.4
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Accounts payable
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1,007.7
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Other current assets
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273.5
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Other accrued liabilities
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972.7
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Total current assets
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3,051.2
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Total current liabilities
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2,175.4
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Property, plan and equipment
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Land
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77.1
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Long-term liabilities
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Buildings
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842.4
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Long-term debt
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4,559.4
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Equipment
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3,546.0
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Deferred taxes
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665.3
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Less accumulated depreciation
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2,373.7
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Other long-term liabilities
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784.2
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Total property, plant and equipment
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2,091.8
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Total long-term liabilities
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6,008.9
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Other noncurrent assets
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4,932.6
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Shareholders' equity
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1,891.3
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Total assets
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$10,075.6
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Total liabilities and shareholders' equity
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$10,075.6
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Blue Bill Corporation
Income Statement
2011
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Sales
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$10,495.0
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Cost of products sold
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6,700.5
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Gross Profit
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3,794.5
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Selling and administrative expense
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2,350.9
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Operating income
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1,443.6
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Other income
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(18.3)
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Earnings before interest and taxes
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1,425.3
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Interest expense
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295.2
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Taxes
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247.8
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Net income
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$ 882.3
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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
Analysis of Blue Bill Corporation's financial health.