Interpreting Financial Results

Review the assigned company’s financial statements from the past three years.Calculate the financial ratios for the assigned company’s financial statements, and then interpret those results against companyhistorical data as well as industry benchmarks:Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011).Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.Write a 500 word summary of your analysis.You would be interested in the Median for years 2011 and 2012-Attached belowSIC: 01Line ofBusiness: Agricultural Production – CropsAssetRange: All Asset Ranges within SIC GroupIndustryQuartiles 2010 2011 2012 2013 2014StatementSampling Samples: 106 Samples: 113 Samples: 98 Samples: 90 Samples: 96Solvency Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median LowerQuick Ratio 1.90 0.90 0.30 1.90 0.70 0.30 3.20 0.90 0.20 1.70 0.70 0.20 2.10 0.80 0.20CurrentRatio 5.40 2.00 1.30 5.20 1.70 1.20 4.10 1.40 1.00 3.80 1.70 0.90 5.20 1.60 0.90CurrentLiabilities /Net Worth(%)8.10 33.60 82.90 10.00 33.80 103.90 10.50 41.00 153.40 11.80 45.50 108.60 7.90 40.20 103.60CurrentLiabilities /Inventory(%)63.50 142.70 471.00 67.50 151.20 478.20 58.00 183.80 739.70 68.80 194.90 844.20 99.00 189.50 560.60TotalLiabilities /Net Worth(%)18.20 56.70 176.50 18.00 66.80 142.30 23.00 74.80 244.90 19.40 88.90 171.40 18.10 68.50 160.90Fixed Assets/ Net Worth(%)44.40 70.10 108.90 42.20 62.10 106.30 38.00 56.70 104.30 34.60 60.80 105.80 35.20 57.80 112.80Efficiency Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median LowerCollectionPeriod(days)18.30 29.90 44.90 14.80 29.20 48.00 11.90 29.90 49.50 11.00 25.90 34.00 16.40 28.50 45.60Sales /Inventory(times)29.70 11.10 4.20 30.40 9.40 3.50 44.30 13.80 5.40 35.70 14.20 4.30 37.00 14.40 4.50Assets /Sales (%) 37.80 72.10 137.50 42.30 64.20 114.50 32.80 59.70 111.70 31.00 63.10 116.50 32.20 66.80 135.90Sales / NetWorkingCapital(times)12.60 5.80 2.70 12.60 5.70 3.20 15.70 5.50 4.20 21.50 6.30 3.70 15.90 7.00 3.20AccountsPayable /Sales (%)1.60 3.90 7.00 2.40 4.20 7.90 2.10 4.60 6.60 1.70 4.10 7.30 2.50 5.20 9.70Profitability Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median LowerReturn onSales (%) 8.50 4.10 0.90 10.00 3.70 0.60 6.40 2.70 0.20 10.00 3.20 0.40 8.40 2.30 0.00Return onAssets (%) 12.30 4.70 1.20 15.70 5.90 1.00 12.60 5.40 0.00 16.40 5.60 0.40 16.90 4.60 -0.10Return onNet Worth(%)21.00 7.80 2.60 32.00 13.30 3.00 33.30 10.30 1.40 36.10 14.60 4.50 33.20 13.70 1.50Median Variance 2010 2011 2012 2013 2014Solvency Median 2011 2012 2013 2014 Median 2010 2012 2013 2014 Median 2010 2011 2013 2014 Median 2010 2011 2012 2014 Median 2010 20112012 2013Quick Ratio 0.90 22.2 0.0 100.0 100.0 0.70 -22.2 -28.6 100.0 100.0 0.90 0.0 28.6 100.0 100.0 – -100.0 -100.0 -100.0 0.0 – -100.0 -100.0-100.0 0.0Current Ratio 2.00 15.0 30.0 100.0 100.0 1.70 -15.0 17.6 100.0 100.0 1.40 -30.0 -17.6 100.0 100.0 – -100.0 -100.0 -100.0 0.0 – -100.0-100.0 -100.0 0.0CurrentLiabilities / NetWorth (%)33.60 -0.2 -7.4 33.6 33.6 33.80 0.2 -7.2 33.8 33.8 41.00 7.4 7.2 41 41 – -33.6 -33.8 -41 – -33.6 -33.8 -41CurrentLiabilities /Inventory (%)142.70 -8.5 -41.1 142.7 142.7 151.20 8.5 -32.6 151.2 151.2 183.80 41.1 32.6 183.8 183.8 – -142.7 -151.2 -183.8 – -142.7 -151.2 -183.8Total Liabilities /Net Worth (%) 56.70 -10.1 -18.1 56.7 56.7 66.80 10.1 -8 66.8 66.8 74.80 18.1 8 74.8 74.8 – -56.7 -66.8 -74.8 – -56.7 -66.8 -74.8Fixed Assets /Net Worth (%) 70.10 8 13.4 70.1 70.1 62.10 -8 5.4 62.1 62.1 56.70 -13.4 -5.4 56.7 56.7 – -70.1 -62.1 -56.7 – -70.1 -62.1 -56.7Efficiency Median 2011 2012 2013 2014 Median 2010 2012 2013 2014 Median 2010 2011 2013 2014 Median 2010 2011 2012 2014 Median 2010 20112012 2013Collection Period(days) 29.90 -2.3 0.0 -100.0 -100.0 29.20 2.3 2.4 -100.0 -100.0 29.90 0.0 -2.4 -100.0 -100.0 – 100.0 100.0 100.0 0.0 – 100.0 100.0100.0 0.0Sales / Inventory(times) 11.10 15.3 -24.3 100.0 100.0 9.40 -15.3 -46.8 100.0 100.0 13.80 24.3 46.8 100.0 100.0 – -100.0 -100.0 -100.0 0.0 – -100.0 –100.0 -100.0 0.01/2Assets / Sales(%) 72.10 7.9 12.4 72.1 72.1 64.20 -7.9 4.5 64.2 64.2 59.70 -12.4 -4.5 59.7 59.7 – -72.1 -64.2 -59.7 – -72.1 -64.2 -59.7Sales / NetWorking Capital(times)5.80 1.7 5.2 100.0 100.0 5.70 -1.7 3.5 100.0 100.0 5.50 -5.2 -3.5 100.0 100.0 – -100.0 -100.0 -100.0 0.0 – -100.0 -100.0 -100.0 0.0AccountsPayable / Sales(%)3.90 -0.3 -0.7 3.9 3.9 4.20 0.3 -0.4 4.2 4.2 4.60 0.7 0.4 4.6 4.6 – -3.9 -4.2 -4.6 – -3.9 -4.2 -4.6Profitability Median 2011 2012 2013 2014 Median 2010 2012 2013 2014 Median 2010 2011 2013 2014 Median 2010 2011 2012 2014 Median 20102011 2012 2013Return on Sales(%) 4.10 0.4 1.4 4.1 4.1 3.70 -0.4 1 3.7 3.7 2.70 -1.4 -1 2.7 2.7 – -4.1 -3.7 -2.7 – -4.1 -3.7 -2.7Return on Assets(%) 4.70 -1.2 -0.7 4.7 4.7 5.90 1.2 0.5 5.9 5.9 5.40 0.7 -0.5 5.4 5.4 – -4.7 -5.9 -5.4 – -4.7 -5.9 -5.4Return on NetWorth (%) 7.80 -5.5 -2.5 7.8 7.8 13.30 5.5 3 13.3 13.3 10.30 2.5 -3 10.3 10.3 – -7.8 -13.3 -10.3 – -7.8 -13.3 -10.3Norms Data 2010 2011 2012 2013 2014Cash 649873 11.00% 667312 10.00% 642434 10.00% 302960 7.00% 550508 9.90%Accounts Receivable 756216 12.80% 807447 12.10% 835164 13.00% 588609 13.60% 722890 13.00%Notes Receivable 106343 1.80% 46712 0.70% 89941 1.40% 51936 1.20% 61168 1.10%Other Current 484450 8.20% 640619 9.60% 610310 9.50% 476080 11.00% 567190 10.20%Total Current 2770822 46.90% 3156384 47.30% 3302108 51.40% 1982226 45.80% 2724738 49.00%Fixed Assets 2599492 44.00% 2896133 43.40% 2698221 42.00% 1882682 43.50% 2352172 42.30%Other Current Assets 537622 9.10% 620600 9.30% 424006 6.60% 463096 10.70% 483780 8.70%Total Assets 5907936 100.00% 6673117 100.00% 6424335 100.00% 4328004 100.00% 5560690 100.00%Accounts Payable 384016 6.50% 313636 4.70% 584614 9.10% 575625 13.30% 1384612 24.90%Bank Loan 29540 0.50% 26692 0.40% 51395 0.80% 0.00% 33364 0.60%Notes Payable 189054 3.20% 246905 3.70% 295519 4.60% 199088 4.60% 283595 5.10%Other Current 974809 16.50% 1101066 16.50% 1355535 21.10% 1934618 44.70% 2563478 46.10%Total Current 1577419 26.70% 1688299 25.30% 2287063 35.60% 2709331 62.60% 4265049 76.70%Other Long Term 1205219 20.40% 1347969 20.20% 1207775 18.80% 839632 19.40% 1423537 25.60%Deferred Credits 17724 0.30% 0.00% 19273 0.30% 0.00% 0.00%Net Worth 3107574 52.60% 3636849 54.50% 2910224 45.30% 779041 18.00% -127896 -2.30%Total Liabilities & Net Worth 5907936 100.00% 6673117 100.00% 6424335 100.00% 4328004 100.00% 5560690 100.00%Net Sales 7845865 100.00% 9255363 100.00% 10006752 100.00% 7249588 100.00% 8812504 100.00%Gross Profit 2596981 33.10% 3285654 35.50% 3552397 35.50% 2638850 36.40% 2837626 32.20%Net Profit After Tax 407985 5.20% 416491 4.50% 490331 4.90% 289984 4.00% 484688 5.50%Working Capital 1193403 0.00% 1468085 0.00% 1015045 0.00% -727105 0.00% -1540311 0.00%2/2Annual FinnancialsAll amounts in millions of US Dollars except per share amounts.Income Statement 12-Dec 11-Dec 10-DecRevenue 11,462.30 13,055.50 12,122.90Cost of Goods Sold 8,562.30 10,037.90 9,117.00Gross Profit 2,900.00 3,017.60 3,005.90Gross Profit Margin 25.30% 23.10% 24.80%SG&A Expense 2,467.60 2,572.60 2,534.20Depreciation & Amortization 6.3 10.5 11.3Operating Income 427.8 -1,801.60 399.7Operating Margin 3.70% -13.80% 3.30%Nonoperating Income 0.7 1.9 -0.2Nonoperating Expenses -164.6 -253 -248.3Income Before Taxes 263.9 -2,052.60 151.2Income Taxes 146.5 -456.8 73.5Net Income After Taxes 117.4 -1,595.80 77.7Continuing Operations 117.4 -1,595.80 77.7Discontinued Operations 43.6 3.6 5Total Operations 158.6 -1,575.60 91.5Total Net Income 158.6 -1,575.60 91.5Net Profit Margin 1.40% -12.10% 0.80%Diluted EPS from Total Net Income 0.85 -8.59 0.5Balance Sheet 12-Dec 11-Dec 10-DecAssetsCurrent AssetsCash 79 114.9 92Net Receivables 881.4 971.1 962.4Inventories 407.9 452.2 425.6Other Current Assets 834.5 178.3 336.3Total Current Assets 2,202.80 1,716.30 1,816.20Net Fixed Assets 1,873.30 2,114.40 2,113.40Other Noncurrent Assets 1,611.00 1,923.70 4,027.10Total Assets 5,687.10 5,754.40 7,956.70Liabilities and Shareholders’ Equity 12-Dec 11-Dec 10-DecCurrent LiabilitiesAccounts Payable 667.8 768.9 782.2Short-Term Debt 25.5 202.5 174.3Other Current Liabilities 647.6 524.1 484.5Total Current Liabilities 1,341.00 1,495.50 1,441.00Long-Term Debt 3,077.30 3,563.40 3,893.30Other Noncurrent Liabilities 911.7 798.8 1,122.90Total Liabilities 5,329.90 5,857.80 6,457.10Shareholder’s EquityPreferred Stock Equity 0 0 0Common Stock Equity 357.2 -103.4 1,499.50Total Equity 357.2 -103.4 1,499.50Shares Outstanding (thou.) 185,563.50 183,745.80 182,255.30Cash Flow Statement 12-Dec 11-Dec 10-DecNet Operating Cash Flow 441 449 534Net Investing Cash Flow -174.2 -128.3 -269.5Net Financing Cash Flow -302.5 -293.6 -217.7Net Change in Cash -36.7 22.8 46.8Depreciation & Amortization 6.3 10.5 11.3Capital Expenditures -228.1 -325.5 -302Cash Dividends Paid 0 6.8 8