Finacial Analysis
According to the rehearsal round of the Capstone Courier financial statistic, my company (Andrew) performed better comparing to the other two companies. As profit is one of the main performance measures, my company’s yearly profit came out to be $12, 5389,134. Baldwin and Chester profited $9,981,809 and $12, 000, 2333 which places my company a head when it comes to profit. The following are more ratios to illustrate my company’s performance, * ROA- 10.9% comparing to 8.4% and 10.9% of the competitors, this indicates that my company is relatively more efficient using the assets to generate earnings. * ROE- 19.4% comparing to 16.4% and 19.7% of the competitors, this shows that my company had a fair amount of profit generated with the money shareholders have invested ranking slightly under Chester Company. * The company’s contribution margin which measures my product's gross operating margin is 29.7% which places my company right in between the two companies, for further improvement I will have to revise each product’s profitability and reduce my production on the product with less profitability which will help me improve my contribution margin. …show more content…
Liquidity Ratio | | | | Net-Working Capital | 0.03 | 0.28 | 0.23 | Current Ratio | 0.93 | 0.79 | 0.81 | Quick Ratio | 0.79 | 0.73 | 0.77 | Cash Ratio | 0.54 | 0.51 | 0.53 | Efficiency Ratio | | | | Sales-to-Assets | 1.30 | 1.22 | 1.31 | Sales-to Networking Capital | 2.37 | 2.14 | 2.26 | Days in inventory | 11.28 | 10.50 | 10.70 | Average Collection | 34.58 | 36.45 | 32.33 | Receivables turnover | 12.17 | 11.73 | 11.98 …show more content…
Profitability Ratio | | | | Net Profit Margin | 12.8% | 11.2% | 12.2% | ROA | 1.30 | 1.07 | 1.46 | ROE | 1.80 | 1.90 | 2.00 | Payout Ratio | 0.45 | 0.51 | 0.46 | Market Value Ratio | | | | Price earnings ratio (P/E) | 9.80 | 11.30 | 10.10 | Dividend Yield | 2.10 | 1.10 | 2.70 | Market to book Ratio | 2.02 | 1.86 | 1.99 |
| Andrew | Baldwin | Chester | Plowback Ratio | 0.37 | 0.27 | 0.23 | Return on Equity | 1.80 | 1.90 | 2.00 | Sustainable growth rate | 20.56% | 14.21% | 11.50% |
| Andrew | Baldwin | Chester | Net Income | $ 12,539.00 | $ 9,982.00 | $ 12,000.00 | Amortizations/Depreciation | $ 7,587.00 | $ 7,933.00 | $ 7,493.00 | Change in Working Capital | $ 64,712.00 | $ 60,865.00 | $ 60,881.00 | Capital Expenditures | $ 1,452.00 | $ 2,354.00 | $ 1,766.00 | Free Cash Flow | 46,038.00 | 45,304.00 | 43,154.00 |
| Andrew | Baldwin | Chester | Plowback Ratio | 0.37 | 0.27 | 0.23 | Return on Equity | 1.80 | 1.90 | 2.00 | Sustainable growth rate | 20.56% | 14.21% | 11.50%
According to the rehearsal round of the Capstone Courier financial statistic, my company (Andrew) performed better comparing to the other two companies. As profit is one of the main performance measures, my company’s yearly profit came out to be $12, 5389,134. Baldwin and Chester profited $9,981,809 and $12, 000, 2333 which places my company a head when it comes to profit. The following are more ratios to illustrate my company’s performance, * ROA- 10.9% comparing to 8.4% and 10.9% of the competitors, this indicates that my company is relatively more efficient using the assets to generate earnings. * ROE- 19.4% comparing to 16.4% and 19.7% of the competitors, this shows that my company had a fair amount of profit generated with the money shareholders have invested ranking slightly under Chester Company. * The company’s contribution margin which measures my product's gross operating margin is 29.7% which places my company right in between the two companies, for further improvement I will have to revise each product’s profitability and reduce my production on the product with less profitability which will help me improve my contribution margin. …show more content…
Liquidity Ratio | | | | Net-Working Capital | 0.03 | 0.28 | 0.23 | Current Ratio | 0.93 | 0.79 | 0.81 | Quick Ratio | 0.79 | 0.73 | 0.77 | Cash Ratio | 0.54 | 0.51 | 0.53 | Efficiency Ratio | | | | Sales-to-Assets | 1.30 | 1.22 | 1.31 | Sales-to Networking Capital | 2.37 | 2.14 | 2.26 | Days in inventory | 11.28 | 10.50 | 10.70 | Average Collection | 34.58 | 36.45 | 32.33 | Receivables turnover | 12.17 | 11.73 | 11.98 …show more content…
Profitability Ratio | | | | Net Profit Margin | 12.8% | 11.2% | 12.2% | ROA | 1.30 | 1.07 | 1.46 | ROE | 1.80 | 1.90 | 2.00 | Payout Ratio | 0.45 | 0.51 | 0.46 | Market Value Ratio | | | | Price earnings ratio (P/E) | 9.80 | 11.30 | 10.10 | Dividend Yield | 2.10 | 1.10 | 2.70 | Market to book Ratio | 2.02 | 1.86 | 1.99 |
| Andrew | Baldwin | Chester | Plowback Ratio | 0.37 | 0.27 | 0.23 | Return on Equity | 1.80 | 1.90 | 2.00 | Sustainable growth rate | 20.56% | 14.21% | 11.50% |
| Andrew | Baldwin | Chester | Net Income | $ 12,539.00 | $ 9,982.00 | $ 12,000.00 | Amortizations/Depreciation | $ 7,587.00 | $ 7,933.00 | $ 7,493.00 | Change in Working Capital | $ 64,712.00 | $ 60,865.00 | $ 60,881.00 | Capital Expenditures | $ 1,452.00 | $ 2,354.00 | $ 1,766.00 | Free Cash Flow | 46,038.00 | 45,304.00 | 43,154.00 |
| Andrew | Baldwin | Chester | Plowback Ratio | 0.37 | 0.27 | 0.23 | Return on Equity | 1.80 | 1.90 | 2.00 | Sustainable growth rate | 20.56% | 14.21% | 11.50%