Financial ratios & growth analysis

ByPlatinum Essays

In this project, you are supposed to be a financial analyst covering a public firm. You have to determine the firm’s strengths and weaknesses relative to its peers, to describe recent trend of key variables, to evaluate firm’s historical performance and to project growth for key variables.

University of Houston-Victoria FINC 6352- Financial Management Dr. Xavier Garza Gomez Mini Project 1

Financial ratios & growth analysis

1. Purpose of the project: In this project, you are supposed to be a financial analyst covering a public firm. You have to apply the knowledge obtained in the Financial Statement Analysis (ACCT6351) course and chapters 2 and 3 of our textbook to determine the firm’s strengths and weaknesses relative to its peers, to describe recent trend of key variables, to evaluate firm’s historical performance and to project growth for key variables.

2. Outline for the project:

(1) Company Profile Students will present basic information to describe the firm, the industry where it operates and at least 2 of its competitors. Simple comparisons must be included for some key variables (country of origin, market cap, revenue, income, etc)

(2) Show financial ratios for company and main competitors

Students will prepare tables and charts using financial ratios from D&B Hoovers and Mergent Online (accessible from http://vcuhvlibrary.uhv.edu/) and report the categories below for the company under study and at least two of its competitors.

• Market Value Ratios (D&B) • Profitability Ratios (Mergent) • Asset Management (Mergent) • Debt Management (Mergent) • Liquidity Ratios (Mergent)

Students don’t need to calculate the ratios, just take them from the D&B or Mergent and merge with the numbers from the competitors. For each of the categories of ratios, students will identify if the firm is average, below average or above average relative to competitors. The leader in each category must be identified. Report areas in which the company is leading and where it is lagging. Trends observed for the most recent 15 years must be commented in the report.

FINC 6352 – Financial Management MP1 Dr. Xavier Garza Gómez

(3) Trend analysis Students will obtain 15 years of financial data from Mergent Online for the company under study. They must obtain balance sheet, income statement and statement of cash flows and they must download two reports: the standardized statements and the “As reported”. They will plot charts for Sales, income, EPS, Assets, Shareholders equity and shares outstanding and other relevant variables. Students will then try to identify key trends in performance and/or important financial ratios that can be linked to the business strategy.

(4) DuPont Analysis

Students will calculate components of DuPont identity and plot them for recent years. Student should describe the performance of each component and identify possible changes in business strategy.

(5) Growth Analysis Students will calculate growth rate for relevant variables that were plotted before (Sales, income, EPS, Assets, Shareholders equity and shares outstanding, etc.) and determine how mature the company is and how efficient the company is when pursuing growth.

(6) Growth Projection

Students will plot year-by year growth rates and conclude about possible future growth for key variables (sales, earnings, dividends)

3. Other information regarding the project:

(1) Your project should be well-organized and typed in a Word document, but you must attach the Excel file with your report. The style and organization part of the project account for 10 percent of the grade.

(2) Financial information obtained in this MP will be used in other mini projects.

This mini project is worth 60 points (out of 1000).

  • University of Houston-Victoria
  • FINC 6352- Financial Management
  • Dr. Xavier Garza Gomez
  • Mini Project 1
  • 1. Purpose of the project:
  • 2. Outline for the project:
  • 3. Other information regarding the project:

,

Compet1

Home Depot Inc (NYS: HD)
Exchange rate used is that of the Year End reported date
HD
Profitability Ratios 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
ROA % (Net) 21.18 23.67 24.72 19.78 18.66 17.04 15.81 13.23 10.94 9.66 8.26 6.5 5.3 8.95 11.94
ROE % (Net) 14099.83 AvgEqty<0 AvgEqty<0 299.07 149.85 89.89 58.25 35.64 25.01 21.17 17.49 14.36 12.77 20.23 22.24
ROI % (Operating) 53.2 57.05 54.76 52.19 48.46 43.61 39.05 32.93 26.69 23.3 20.29 16.53 14.48 21.01 28.66
EBITDA Margin % 15.67 16.39 16.27 16.59 16.28 15.41 14.73 13.86 12.64 11.85 11.11 9.99 8.78 11.83 12.72
Calculated Tax Rate % 24.22 23.6 23.6 37 36.3 36.4 36.4 36.4 37.2 36.01 36.7 34.2 35.6 36.4 38.11
Revenue per Employee 262427 265884 257756 244991 233633 230551 224810 216516 216309 213258 212411 209331 222000 229904 250238
Liquidity Ratios 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
Quick Ratio 0.47 0.23 0.22 0.34 0.32 0.33 0.28 0.31 0.34 0.34 0.16 0.23 0.13 0.14 0.3
Current Ratio 1.23 1.08 1.11 1.17 1.25 1.36 1.36 1.42 1.34 1.55 1.33 1.34 1.2 1.15 1.39
Net Current Assets % TA 7.52 2.8 4.12 6.15 8.36 10.5 10.1 11.18 9.52 12.7 8.37 8.65 5.37 4.44 9.7
Debt Management 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
LT Debt to Equity 10.86 Equity<0 Equity<0 16.69 5.16 3.31 1.81 1.17 0.53 0.6 0.46 0.45 0.54 0.64 0.47
Total Debt to Equity 11.29 Equity<0 Equity<0 18.59 5.45 3.37 1.84 1.18 0.61 0.6 0.52 0.5 0.64 0.76 0.47
Interest Coverage 14.06 14.05 15.94 14.93 14.35 15.64 21.24 13.11 14.25 11.23 10.32 5.85 5.67 11.64 26.5
Asset Management 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
Total Asset Turnover 2.17 2.32 2.4 2.31 2.22 2.15 2.07 1.94 1.8 1.75 1.68 1.62 1.67 1.58 1.88
Receivables Turnover 51.97 54.69 54.76 50.83 48.41 52.62 57.88 56.59 55.72 60.59 66.55 68.55 64.08 33.96 32.42
Inventory Turnover 5.6 5.11 5.33 5.26 5.11 5.09 4.9 4.72 4.65 4.4 4.29 4.2 4.22 4.18 5.04
Accounts Payable Turnover 13.66 14.22 14.19 14.21 13.99 14.35 14.38 14.15 14.38 14.75 14.23 13.7 13.55 11.63 13.61
Accrued Expenses Turnover 27.32 26.67 26.86 27.02 26.58 26.68 26.18 25.6 24.8 24.62 24.11 23.59 24.99 24.63 30.09
Property Plant & Equip Turnover 5.58 4.9 4.79 4.6 4.3 3.95 3.62 3.33 3.03 2.85 2.69 2.56 2.66 2.81 3.54
Cash & Equivalents Turnover 26.42 56.52 39.63 33 39.91 45.07 45.68 35.74 32.83 55.76 69.36 68.41 148.31 145.64 130.78
Per Share 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
Cash Flow per Share 17.59 12.59 11.28 10.24 7.98 7.36 6.18 5.37 4.58 4.27 2.79 3.05 3.3 3.05 3.74
Book Value per Share 3.06 -2.89 -1.7 1.26 3.6 5.04 7.13 9.07 11.98 11.64 11.64 11.42 10.48 10.48 12.71

ratios company

Lowe's Companies Inc (NYS: LOW)
Exchange rate used is that of the Year End reported date
LOW
Profitability Ratios 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
ROA % (Net) 13.57 11.61 6.65 9.92 9.27 8.09 8.38 7.01 5.93 5.38 6.04 5.44 6.93 9.61 11.87
ROE % (Net) 343.27 152.88 48.76 56.17 43.2 28.98 24.8 17.83 12.93 10.44 10.84 9.63 12.89 17.7 20.71
ROI % (Operating) 43.48 30.78 18.86 29.35 27.11 23.94 21.99 18.36 15.16 13.2 14.62 12.93 16.19 21.98 27.17
EBITDA Margin % 11.26 10.69 7.6 10.96 11.3 10.93 11.16 10.5 10.06 9.47 10.54 10.01 11.04 12.57 13.45
Calculated Tax Rate % 24.6 23.87 31.82 37.2 40.53 42.39 36.9 37.76 37.55 36.72 37.73 36.88 37.39 37.73 37.88
Revenue per Employee 264245 226082 238350 221960 220571 219394 211945 204442 206775 199177 209184 198116 211190 224147 224076
Liquidity Ratios 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Quick Ratio 0.28 0.06 0.05 0.06 0.05 0.07 0.06 0.06 0.09 0.16 0.16 0.14 0.08 0.07 0.12
Current Ratio 1.19 1.01 0.98 1.06 1 1.01 1.08 1.16 1.27 1.28 1.4 1.32 1.15 1.12 1.27
Net Current Assets % TA 7.69 0.34 -0.78 1.92 0.08 0.22 2.3 4.34 6.36 6.5 8.45 7.2 3.76 3.03 6.39
Debt Management 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
LT Debt to Equity 14.38 8.5 3.95 2.65 2.24 1.51 1.08 0.85 0.65 0.43 0.36 0.24 0.28 0.35 0.28
Total Debt to Equity 15.16 9.79 4.45 2.89 2.44 1.65 1.14 0.89 0.66 0.46 0.36 0.27 0.34 0.41 0.28
Interest Coverage 11.38 9.14 6.44 10.4 9.06 9.01 9.29 8.72 8.42 8.83 10.72 10.84 13.52 24.25 33.45
Asset Management 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Total Asset Turnover 2.08 1.96 2.05 1.97 1.95 1.88 1.75 1.64 1.53 1.47 1.47 1.44 1.52 1.65 1.79
Receivables Turnover – – – – – – – – – – – – – – 5228.44
Inventory Turnover 4.09 3.82 4.04 4.14 4.27 4.19 4.07 3.94 3.92 3.94 3.82 3.74 4.01 4.28 4.44
Accounts Payable Turnover 9.69 9.08 9.62 10.39 10.41 11.01 11.13 11.08 11.25 11.35 11.33 11.28 12.37 13.38 14.81
Accrued Expenses Turnover 50.07 52.37 53.48 50.3 46.34 44.72 44.58 45.76 48 58.73 78.7 93.67 112.73 121.65 118.23
Property Plant & Equip Turnover 4.75 3.9 3.75 3.47 3.24 2.99 2.76 2.53 2.33 2.24 2.2 2.09 2.19 2.4 2.66
Cash & Equivalents Turnover 33.24 117.92 130.13 120.08 132.85 136.02 131.57 114.94 65.16 59.3 76.24 107.98 183.89 150.13 119.58
Per Share 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Cash Flow per Share 14.81 5.54 7.66 6.05 6.28 5.17 5 3.89 3.28 3.37 2.76 2.78 2.84 2.94 2.94
Book Value per Share 1.97 2.58 4.55 7.08 7.43 8.41 10.38 11.51 12.48 13.32 13.38 13.07 12.28 11.04 10.31

Compet2

Walmart Inc (NYS: WMT)
Exchange rate used is that of the Year End reported date
WMT
Profitability Ratios 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
ROA % (Net) 5.51 6.53 3.15 4.89 6.83 7.29 8.01 7.86 8.55 8.39 9.33 8.58 8.17 8.09 7.8
ROE % (Net) 17.32 20.22 8.87 12.67 17.19 18.15 20.76 21 22.96 22.45 23.53 21.08 20.58 20.18 19.67
ROI % (Operating) 17.37 15.84 17.23 16.48 17.85 18.38 20.51 20.41 21.73 21.85 22.16 21.82 20.98 20.96 21.29
EBITDA Margin % 6.07 6.4 4.72 5.56 6.74 6.95 7.46 7.49 7.72 7.75 7.86 7.63 7.27 7.47 7.46
Calculated Tax Rate % 33.35 24.43 37.36 30.42 30.27 30.31 32.2 32.87 31.01 32.56 32.2 32.35 34.19 34.2 33.56
Revenue per Employee 242445 238165 233820 217540 210672 219150 220750 216497 212673 203159 200880 194388 192618 180380 183500
Liquidity Ratios 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
Quick Ratio 0.26 0.2 0.18 0.16 0.19 0.22 0.24 0.2 0.2 0.2 0.21 0.22 0.2 0.16 0.2
Current Ratio 0.97 0.79 0.8 0.76 0.86 0.93 0.97 0.88 0.83 0.88 0.89 0.87 0.88 0.81 0.9
Net Current Assets % TA -1.02 -6.76 -7.1 -9.22 -4.65 -2.19 -0.98 -3.99 -5.85 -3.79 -3.65 -4.24 -3.94 -6.65 -3.42
Debt Management 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
LT Debt to Equity 0.56 0.64 0.69 0.47 0.54 0.55 0.54 0.58 0.54 0.66 0.64 0.51 0.53 0.52 0.5
Total Debt to Equity 0.6 0.73 0.8 0.6 0.59 0.62 0.62 0.74 0.71 0.75 0.73 0.58 0.65 0.69 0.63
Interest Coverage 10.28 8.53 10.31 9.38 10.04 9.77 11.56 12.13 13.47 12.3 12.75 12.71 12 12.23 13.41
Asset Management 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
Total Asset Turnover 2.28 2.3 2.43 2.48 2.43 2.39 2.38 2.34 2.36 2.39 2.4 2.44 2.47 2.41 2.41
Receivables Turnover 87.13 83.39 86.48 87.4 84.57 77.75 72.19 70.85 73.65 81.07 91.38 101.43 107.02 116.66 126.74
Inventory Turnover 9.4 8.9 8.75 8.6 8.26 8.06 8.11 8.08 8.34 8.7 9.08 9 8.79 8.32 8.02
Accounts Payable Turnover 11.6 11.14 11.04 11.43 12.13 12.54 12.81 12.62 12.53 12.74 13.18 13.77 13.66 12.96 13.04
Accrued Expenses Turnover 25.49 25.41 24.85 23.64 23.24 23.93 24.32 23.36 23.2 23.42 21.66 20.99 22.72 23.53 23.1
Property Plant & Equip Turnover 5.65 5 4.85 4.65 4.45 4.3 4.23 4.15 4.19 4.16 4.12 4.24 4.33 4.23 4.32
Cash & Equivalents Turnover 40.99 60.97 71.06 73.46 62.23 54.05 59.17 63.24 65.3 64.1 55.14 53.78 62.99 58.54 50.58
Per Share 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
Cash Flow per Share 12.71 8.86 9.48 9.46 10.14 8.54 8.84 7.11 7.56 7.01 6.47 6.79 5.86 5.01 4.84
Book Value per Share 28.69 26.37 25.19 26.38 25.52 25.47 25.21 23.59 23.04 20.86 19.49 18.69 16.63 16.26 14.91

Compet3

Exchange rate used is that of the Year End reported date
Profitability Ratios 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
ROA % (Net)
ROE % (Net)
ROI % (Operating)
EBITDA Margin %
Calculated Tax Rate %
Revenue per Employee
Liquidity Ratios
Quick Ratio
Current Ratio
Net Current Assets % TA
Debt Management
LT Debt to Equity
Total Debt to Equity
Interest Coverage
Asset Management
Total Asset Turnover
Receivables Turnover
Inventory Turnover
Accounts Payable Turnover
Accrued Expenses Turnover
Property Plant & Equip Turnover
Cash & Equivalents Turnover
Per Share
Cash Flow per Share
Book Value per Share

asreported

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Lowe's Companies Inc (NYS: LOW)
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Cash & cash equivalents 4690000 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000
Short-term investments 506000 160000 218000 102000 100000 307000 125000 185000 125000 286000 471000 425000 416000 249000 432000
Merchandise inventory – net 16193000 13179000 12561000 11393000 10458000 9458000 8911000 9127000 8600000 8355000 8321000 8249000 8209000 7611000 7144000
Deferred income taxes, net – – – – – – 230000 252000 217000 183000 193000 208000 166000 247000 161000
Other current assets 937000 1263000 938000 689000 884000 391000 348000 341000 301000 234000 330000 218000 215000 298000 213000
Total current assets 22326000 15318000 14228000 12772000 12000000 10561000 10080000 10296000 9784000 10072000 9967000 9732000 9251000 8686000 8314000
Land 7315000 7200000 7196000 7414000 7329000 7086000 7040000 7016000 6986000 6936000 6742000 6519000 6144000 5566000 5496000
Buildings – – – – – – – – – – – 12069000 11258000 10036000 9655000
Buildings & building improvements 18090000 17862000 18052000 18521000 18147000 17451000 17247000 17161000 16968000 16640000 16531000 – – – –
Equipment 10466000 10377000 10090000 10475000 10978000 10863000 10426000 10063000 9780000 9835000 9142000 8826000 8797000 8118000 7477000
Leasehold improvements – – – – – – – – – – – 3818000 3576000 3063000 2476000
Construction in progress 831000 506000 525000 530000 464000 513000 730000 834000 932000 921000 930000 1036000 1702000 2053000 –
Total cost 36702000 35945000 35863000 36940000 36918000 35913000 35443000 35074000 34666000 34332000 33345000 32268000 31477000 28836000 25104000
Less: accumulated depreciation 17547000 17276000 17431000 17219000 16969000 16336000 15409000 14240000 13189000 12362000 11256000 9769000 8755000 7475000 6133000
Property, less accumulated depreciation 19155000 18669000 18432000 19721000 19949000 19577000 20034000 20834000 21477000 21970000 22089000 22499000 22722000 21361000 18971000
Operating lease right-of-use assets 3832000 3891000 – – – – – – – – – – – – –
Long-term investments 200000 372000 256000 408000 366000 222000 354000 279000 271000 504000 1008000 277000 253000 509000 165000
Deferred income taxes – net 340000 216000 294000 168000 222000 241000 – – – – – – – – –
Goodwill – 303000 303000 1307000 1082000 – – – – – – – – – –
Other assets 882000 702000 995000 915000 789000 665000 1359000 1323000 1134000 1013000 635000 497000 460000 313000 317000
Total assets 46735000 39471000 34508000 35291000 34408000 31266000 31827000 32732000 32666000 33559000 33699000 33005000 32686000 30869000 27767000
Short-term borrowings – 1941000 722000 1137000 510000 43000 – 386000 – – – – 987000 1064000 23000
Current maturities of long-term debt 1112000 597000 1110000 294000 795000 1061000 552000 49000 47000 592000 36000 552000 34000 40000 88000
Current operating lease liabilities 541000 501000 – – – – – – – – – – – – –
Accounts payable 10884000 7659000 8279000 6590000 6651000 5633000 5124000 5008000 4657000 4352000 4351000 4287000 4109000 3713000 3524000
Accrued salaries & wages – – – – – – – – – – – – – 424000 372000
Accrued compensation & employee benefits 1350000 684000 662000 747000 790000 820000 773000 785000 670000 613000 667000 577000 434000 – –
Self-insurance liabilities – – – – – – – – – – – – 751000 671000 650000
Deferred revenue 1608000 1219000 1299000 1378000 1253000 1078000 979000 892000 824000 801000 707000 683000 674000 717000 731000
Accrued dividends 440000 420000 385000 340000 304000 255000 222000 186000 178000 174000 – – – – –
Self-insurance liabilities 435000 501000 378000 347000 327000 343000 346000 324000 316000 318000 – – – – –
Sales return reserve 252000 194000 194000 – – – – – – – – – – – –
Sales tax liabilities 256000 153000 184000 184000 210000 140000 131000 122000 104000 158000 – – – – –
Accrued interest 250000 221000 179000 144000 194000 179000 165000 153000 136000 126000 – – – – –
Income taxes payable 168000 – – – – – – – – – – – – – –
Accrued property taxes 120000 104000 108000 109000 108000 111000 124000 121000 112000 102000 – – – – –
Other current liabilities 1314000 988000 997000 826000 832000 829000 932000 850000 664000 655000 – – – – –
Other current liabilities 3235000 2581000 2425000 1950000 1975000 1857000 1920000 1756000 1510000 1533000 – – – – –
Other current liabilities – – – – – – – – – – 1358000 1256000 1033000 1122000 1151000
Total current liabilities 18730000 15182000 14497000 12096000 11974000 10492000 9348000 8876000 7708000 7891000 7119000 7355000 8022000 7751000 6539000
Secured mortgage notes 5000 5000 6000 6000 7000 7000 16000 17000 19000 20000 17000 35000 27000 33000 30000
Unsecured debt – notes 21121000 16648000 14721000 14961000 14321000 12073000 10860000 9617000 8627000 7189000 6192000 500000 500000 499000 498000
Debentures – – – – – – – – – – – 694000 694000 694000 693000
Medium-term notes – – – – – – – – – – – 232000 232000 237000 27000
Senior notes – – – – – – – – – – – 3276000 3273000 3271000 267000
Convertible notes – – – – – – – – – – – – – 511000 1980000
Convertible subordinated notes – – – – – – – – – – – – – – 518000
Finance or capitalized lease obligations 654000 712000 774000 891000 861000 526000 491000 501000 431000 418000 364000 – – – –
Capital leases & other long-term debt – – – – – – – – – – – 343000 347000 371000 400000
Total long-term debt 21780000 17365000 15501000 15858000 15189000 12606000 11367000 10135000 9077000 7627000 6573000 5080000 5073000 5616000 4413000
Less: current maturities 1112000 597000 1110000 294000 795000 1061000 552000 49000 47000 592000 36000 552000 34000 40000 88000
Long-term debt, excluding current maturities 20668000 16768000 14391000 15564000 14394000 11545000 10815000 10086000 9030000 7035000 6537000 4528000 5039000 5576000 4325000
Noncurrent operating lease liabilities 3890000 3943000 – – – – – – – – – – – – –
Deferred income taxes – net – – – – – – 97000 291000 455000 531000 467000 598000 660000 670000 735000
Deferred revenue – extended protection plans 1019000 894000 827000 803000 763000 729000 730000 730000 715000 704000 631000 – – – –
Other liabilities 991000 712000 1149000 955000 843000 846000 869000 896000 901000 865000 833000 1455000 910000 774000 443000
Total liabilities 45298000 37499000 30864000 29418000 27974000 23612000 21859000 20879000 18809000 17026000 15587000 13936000 14631000 14771000 12042000
Common stock 366000 381000 401000 415000 433000 455000 480000 515000 555000 621000 677000 729000 735000 729000 762000
Capital in excess of par value 90000 – – 22000 – – – – 26000 14000 11000 6000 277000 16000 102000
Retained earnings (accumulated deficit) 1117000 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000
Accumulated other comprehensive income (loss) -136000 -136000 -209000 11000 -240000 -394000 -103000 -17000 52000 46000 53000 27000 -6000 8000 1000
Total shareholders' equity (deficit) 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000 18112000 19069000 18055000 16098000 15725000
As Reported Annual Income Statement
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Net sales 89597000 72148000 71309000 68619000 65017000 59074000 56223000 53417000 50521000 50208000 48815000 47220000 48230000 48283000 46927000
Cost of sales 60025000 49205000 48401000 45210000 42553000 38504000 36665000 34941000 33194000 32858000 31663000 30757000 31729000 31556000 30729000
Gross margin 29572000 22943000 22908000 23409000 22464000 20570000 19558000 18476000 17327000 17350000 17152000 16463000 16501000 16727000 16198000
Selling, general & administrative expenses 18526000 15367000 17413000 15376000 15129000 14115000 13281000 12865000 12244000 12593000 12006000 11688000 11074000 10515000 9738000
Store opening costs – – – – – – – – – – – 49000 102000 141000 146000
Depreciation – – – – – 1484000 1485000 1462000 1523000 1480000 1586000 1614000 1539000 1366000 1162000
Depreciation & amortization expenses 1399000 1262000 1477000 1447000 1489000 – – – – – – – – – –
Operating income (loss) 9647000 6314000 4018000 6586000 5846000 – – – – – – – – – –
Interest expense on long-term debt 807000 668000 582000 582000 583000 505000 470000 431000 418000 341000 312000 293000 292000 247000 183000
Interest expense on lease obligations 32000 – – – – – – – – – – – – – –
Interest expense on short-term borrowings 13000 – – – – – – – – – – 2000 11000 – –
Interest expense on capitalized lease obligations – 30000 58000 56000 53000 42000 42000 40000 37000 38000 35000 32000 31000 32000 34000
Interest income 24000 27000 28000 16000 12000 4000 6000 4000 9000 12000 12000 17000 40000 45000 52000
Interest capitalized – 1000 3000 5000 4000 3000 2000 4000 4000 10000 14000 19000 36000 65000 32000
Interest on tax uncertainties – – 3000 -3000 2000 -1000 -1000 6000 -27000 8000 7000 -9000 – – –
Other interest expense 20000 21000 12000 19000 23000 13000 13000 7000 8000 6000 4000 5000 22000 25000 21000
Interest – net -848000 -691000 -624000 -633000 -645000 -552000 -516000 -476000 -423000 -371000 -332000 -287000 -280000 -194000 -154000
Gain (loss) on extinguishment of debt -1060000 – – -464000 – – – – – – – – – – –
Total expenses – – – – – 16151000 15282000 14803000 14190000 14444000 13924000 13638000 12995000 12216000 11200000
Pre-tax earnings (losses) 7739000 5623000 3394000 5489000 5201000 4419000 4276000 3673000 3137000 2906000 3228000 2825000 3506000 4511000 4998000
Current provision (benefit) for income taxes – federal 1578000 935000 963000 1734000 1824000 1688000 1475000 1342000 1162000 891000 1171000 1046000 1070000 1495000 1657000
Current provision (benefit) for income taxes – state 425000 268000 274000 252000 275000 248000 221000 203000 155000 124000 188000 123000 166000 207000 242000
Total current provision (benefit) for income taxes 2003000 1203000 1237000 1986000 2099000 1936000 1696000 1545000 1317000 1015000 1359000 1169000 1236000 1702000 1899000
Deferred provision (benefit) for income taxes – federal -73000 121000 -102000 60000 6000 -59000 -112000 -133000 -133000 50000 -117000 -108000 82000 -1000 -11000
Deferred provision (benefit) for income taxes – state -26000 18000 -55000 -4000 3000 -4000 -6000 -25000 -6000 2000 -24000 -19000 -7000 1000 5000
Total deferred provision (benefit) of deferred income taxes -99000 139000 -157000 56000 9000 -63000 -118000 -158000 -139000 52000 -141000 -127000 75000 – -6000
Income tax provision (benefit) 1904000 1342000 1080000 2042000 2108000 1873000 1578000 1387000 1178000 1067000 1218000 1042000 1311000 1702000 1893000
Net earnings (loss) 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Less: net earnings allocable to participating securities 24000 13000 7000 11000 11000 12000 16000 16000 14000 15000 17000 13000 – – –
Less: Premium paid to acquire noncontrolling interest – – – – 18000 – – – – – – – – – –
Net earnings (loss) allocable to common shares 5811000 4268000 2307000 3436000 3062000 2534000 2682000 2270000 1945000 1824000 1993000 1770000 – – –
Weighted average shares outstanding – basic 748000 777000 811000 839000 880000 927000 988000 1059000 1150000 1271000 1401000 1462000 1457000 1481000 1535000
Weighted average shares outstanding – diluted 750000 778000 812000 840000 881000 929000 990000 1061000 1152000 1273000 1403000 1464000 1472000 1510000 1566000
Year end shares outstanding 731000 763000 801000 830000 866000 910000 960000 1030000 1110000 1241000 1354000 1459000 1470000 1458000 1524500
Net earnings (loss) per common share – basic 7.77 5.49 2.84 4.09 3.48 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.51 1.9 2.02
Net earnings (loss) per common share – diluted 7.75 5.49 2.84 4.09 3.47 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.49 1.86 1.99
Cash dividends per share 2.3 2.13 1.85 1.58 1.33 1.07 0.87 0.7 0.62 0.53 0.42 0.355 0.335 0.29 0.18
Number of full time employees 220000 200000 190000 200000 190000 180000 175000 167000 160000 161000 161000 166000 164000 160000 157000
Number of part time employees 120000 120000 110000 110000 100000 90000 91000 95000 85000 87000 73000 73000 65000 56000 53000
Number of common stockholders 21657 22129 22326 22926 23575 24337 25065 25932 27259 28727 29962 31041 31701 31941 31770
Foreign currency translation adjustments 78000 94000 -221000 251000 154000 -291000 – – – – – – – – –
As Reported Annual Retained Earnings
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Previous retained earnings (accumulated deficit) 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000 12191000
Cumulative effect of accounting change – -263000 33000 – – – – – – – – – – -8000 –
Cash dividends declared 1724000 1653000 1500000 1324000 1169000 991000 858000 741000 708000 672000 588000 522000 491000 428000 276000
Repurchases of common stock 4721000 4090000 2820000 2939000 3274000 3553000 3604000 3414000 3879000 2686000 2358000 3000 – 1888000 160000
Retained earnings (accumulated deficit) 1117000 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000
As Reported Annual Cash Flow
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Net earnings (loss) 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Depreciation & amortization 1594000 1410000 1607000 1540000 1590000 1587000 1586000 1562000 1623000 1579000 1684000 1733000 1667000 1464000 1237000
Noncash lease expense 479000 468000 – – – – – – – – – – – – –
Deferred income taxes -108000 177000 -151000 53000 28000 -68000 -124000 -162000 -140000 54000 -133000 -123000 69000 2000 -6000
Loss (gain) on disposition or writedown (write-back) of fixed & other assets – – – – – – – – – – – – – 51000 23000
Loss (gain) on property & other assets – net 139000 117000 630000 40000 143000 33000 25000 64000 83000 456000 103000 193000 89000 – –
Impairment of goodwill – – 952000 – – – – – – – – – – – –
Loss (gain) on extinguishment of debt 1060000 – – 464000 – – – – – – – – – – –
Loss on equity method investments – – – – – 591000 57000 52000 48000 – – – – – –
Loss (gain) on cost method & equity method investments – 12000 9000 -82000 302000 – – – – – – – – – –
Loss on redemption of long-term debt – – – – – – – – – – – – 8000 – –
Transaction loss from exchange rate changes – – – – – – – – – – – – 3000 – –
Share-based payment expense 155000 98000 74000 99000 90000 117000 119000 100000 100000 107000 115000 102000 95000 99000 62000
Merchandise inventory – net -2967000 -600000 -1289000 -791000 -178000 -582000 170000 -396000 -244000 -33000 -64000 -28000 -611000 -464000 -509000
Other operating assets 326000 -376000 -110000 250000 -183000 -34000 83000 -5000 -87000 137000 -142000 7000 31000 -64000 -135000
Accounts payable 3211000 -637000 1720000 -92000 653000 524000 127000 291000 303000 -5000 60000 175000 402000 185000 692000
Deferred revenue 512000 – – – – – – – – – – – – – –
Other operating liabilities 813000 -654000 437000 137000 79000 70000 188000 319000 117000 215000 219000 212000 174000 265000 33000
Net cash flows from operating activities 11049000 4296000 6193000 5065000 5617000 4784000 4929000 4111000 3762000 4349000 3852000 4054000 4122000 4347000 4502000
Purchases of short-term investments – – – – – – – – – – – -344000 -210000 -920000 -284000
Purchases of investments -3094000 -743000 -1373000 -981000 -1192000 -934000 -820000 -759000 -1444000 -1433000 -2605000 – – – –
Proceeds from sale or maturity of investments 2926000 695000 1393000 1114000 1254000 884000 805000 709000 1837000 2120000 1822000 – – – –
Proceeds from sale or maturity of short-term investments – – – – – – – – – – – 624000 431000 1183000 572000
Purchases of long-term investments – – – – – – – – – – – -1483000 -1148000 -1588000 -558000
Proceeds from sale or maturity of long-term investments – – – – – – – – – – – 1160000 994000 1162000 415000
Decrease (increase) in other long-term assets – – – – – – – – – – -97000 -62000 -56000 -7000 -16000
Property acquired – – – – – – – – – -1829000 -1329000 -1799000 -3266000 -4010000 -3916000
Capital expenditures -1791000 -1484000 -1174000 -1123000 -1167000 -1197000 -880000 -940000 -1211000 – – – – – –
Contributions to equity method investments – net – – – – – -125000 -241000 -173000 -219000 -232000 – – – – –
Proceeds from sale of property & other long-term assets 90000 163000 76000 45000 37000 57000 52000 75000 130000 52000 25000 18000 29000 57000 72000
Purchases of derivative instruments – – – – -103000 – – – – – – – – – –
Proceeds from settlement of derivative instruments – – – – 179000 – – – – – – – – – –
Acquisition of business – net – – – -509000 -2356000 – – -203000 – – – – – – –
Other investing activities – net -25000 – -2000 13000 -13000 -28000 -4000 5000 4000 -115000 – – – – –
Net cash flows from investing activities -1894000 -1369000 -1080000 -1441000 -3361000 -1343000 -1088000 -1286000 -903000 -1437000 -2184000 -1886000 -3226000 -4123000 -3715000
Net change in commercial paper -941000 220000 – – – – – – – – – – – – –
Net change in short-term borrowings – – -415000 625000 466000 43000 -386000 386000 – – – -1007000 -57000 1041000 23000
Net proceeds from issuance of debt 7929000 3972000 – 2968000 3267000 1718000 1239000 985000 1984000 993000 1985000 10000 15000 1296000 989000
Repayment of debt -5618000 -1113000 -326000 -2849000 -1173000 -552000 -48000 -47000 -591000 -37000 -552000 -37000 -573000 -96000 -33000
Proceeds from issuance of common stock under share-based payment plans 152000 118000 114000 139000 139000 125000 137000 165000 349000 100000 104000 75000 76000 80000 76000
Proceeds from issuance of common stock from stock options exercised – – – – – – – – – – – 53000 98000 69000 100000
Cash dividend payments -1704000 -1618000 -1455000 -1288000 -1121000 -957000 -822000 -733000 -704000 -647000 -571000 -391000 -491000 -428000 -276000
Repurchases of common stock -4971000 -4313000 -3037000 -3192000 -3595000 -3925000 -3905000 -3710000 -4393000 -2937000 -2618000 -504000 -8000 -2275000 -1737000
Excess tax benefits of share-based payments – – – – – – – – – – 1000 – 1000 6000 12000
Other financing activities – net -38000 -1000 -5000 -10000 -75000 55000 24000 -15000 22000 -21000 – – – – –
Net cash flows from financing activities -5191000 -2735000 -5124000 -3607000 -2092000 -3493000 -3761000 -2969000 -3333000 -2549000 -1651000 -1801000 -939000 -307000 -846000
Effect of exchange rate changes on cash 10000 1000 -12000 13000 -11000 -9000 -5000 -6000 1000 -1000 3000 20000 7000 – –
Net increase (decrease) in cash & cash equivalents, including cash classified within current assets held for sale 3974000 193000 -23000 – – – – – – – – – – – –
Net increase (decrease) in cash & cash equivalents 3974000 205000 -77000 30000 153000 -61000 75000 -150000 -473000 362000 20000 387000 -36000 -83000 -59000
Less: net increase (decrease) in cash classified within current assets held for sale – 12000 -54000 – – – – – – – – – – – –
Cash & cash equivalents, beginning of year 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000 423000
Cash & cash equivalents, end of year 4690000 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000
Cash paid for interest, net of amount capitalized 824000 671000 635000 654000 619000 535000 504000 454000 444000 361000 319000 314000 309000 198000 179000
Cash paid for income taxes, net 1588000 1423000 1316000 1673000 2217000 2055000 1534000 1505000 1404000 914000 1590000 1157000 1138000 1725000 2031000

standardized

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Lowe's Companies Inc (NYS: LOW)
Exchange rate used is that of the Year End reported date
Standardized Annual Balance Sheet
Report Date 1/29/21 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Cash & Equivalents 4690000 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000
Short Term Investments 506000 160000 218000 102000 100000 307000 125000 185000 125000 286000 471000 425000 416000 249000 432000
Cash & Equivs & ST Investments 5196000 876000 729000 690000 658000 712000 591000 576000 666000 1300000 1123000 1057000 661000 530000 796000
Receivables (ST) – – – – – – 0 0 0 0 0 0 0 0 0
Inventories 16193000 13179000 12561000 11393000 10458000 9458000 8911000 9127000 8600000 8355000 8321000 8249000 8209000 7611000 7144000
Current Tax Assets – – – – – – 230000 252000 217000 183000 193000 208000 166000 247000 161000
Other Current Assets 937000 1263000 938000 689000 884000 391000 348000 341000 301000 234000 330000 218000 215000 298000 213000
Total Current Assets 22326000 15318000 14228000 12772000 12000000 10561000 10080000 10296000 9784000 10072000 9967000 9732000 9251000 8686000 8314000
Gross Property Plant & Equip 36702000 35945000 35863000 36940000 36918000 35913000 35443000 35074000 34666000 34332000 33345000 32268000 31477000 28836000 25104000
Accumulated Depreciation 17547000 17276000 17431000 17219000 16969000 16336000 15409000 14240000 13189000 12362000 11256000 9769000 8755000 7475000 6133000
Net Property Plant & Equip 19155000 18669000 18432000 19721000 19949000 19577000 20034000 20834000 21477000 21970000 22089000 22499000 22722000 21361000 18971000
Long Term Investments 200000 372000 256000 408000 366000 222000 354000 279000 271000 504000 1008000 277000 253000 509000 165000
Intangible Assets – 303000 303000 1307000 1082000 – – – – – – – – – –
Deferred LT Assets 340000 216000 294000 168000 222000 241000 – – – – – – – – –
Other Assets 4714000 4593000 995000 915000 789000 665000 1359000 1323000 1134000 1013000 635000 497000 460000 313000 317000
Total Assets 46735000 39471000 34508000 35291000 34408000 31266000 31827000 32732000 32666000 33559000 33699000 33005000 32686000 30869000 27767000
Accounts Payable & Accrued Exps 13044000 9088000 9613000 7930000 8047000 6998000 6408000 6253000 5753000 5367000 5018000 4864000 4543000 4137000 3896000
Accounts Payable 10884000 7659000 8279000 6590000 6651000 5633000 5124000 5008000 4657000 4352000 4351000 4287000 4109000 3713000 3524000
Accrued Expenses 2160000 1429000 1334000 1340000 1396000 1365000 1284000 1245000 1096000 1015000 667000 577000 434000 424000 372000
Current Debt 1112000 2538000 1832000 1431000 1305000 1104000 552000 435000 47000 592000 36000 552000 1021000 1104000 111000
Other Current Liabilities 4574000 3556000 3052000 2735000 2622000 2390000 2388000 2188000 1908000 1932000 2065000 1939000 2458000 2510000 2532000
Total Current Liabilities 18730000 15182000 14497000 12096000 11974000 10492000 9348000 8876000 7708000 7891000 7119000 7355000 8022000 7751000 6539000
LT Debt & Leases 20668000 16768000 14391000 15564000 14394000 11545000 10815000 10086000 9030000 7035000 6537000 4528000 5039000 5576000 4325000
Deferred LT Liabilities 1019000 894000 827000 803000 763000 729000 827000 1021000 1170000 1235000 1098000 598000 660000 670000 735000
Minority Interests 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Liabilities 4881000 4655000 1149000 955000 843000 846000 869000 896000 901000 865000 833000 1455000 910000 774000 443000
Total Liabilities 45298000 37499000 30864000 29418000 27974000 23612000 21859000 20879000 18809000 17026000 15587000 13936000 14631000 14771000 12042000
Common Share Capital 366000 381000 401000 415000 433000 455000 480000 515000 555000 621000 677000 729000 735000 729000 762000
Additional Paid-In Capital 90000 – – 22000 – – – – 26000 14000 11000 6000 277000 16000 102000
Retained Earnings 1117000 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000
Accum Other Comprehensive Income -136000 -136000 -209000 11000 -240000 -394000 -103000 -17000 52000 46000 53000 27000 -6000 8000 1000
Other Equity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Equity 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000 18112000 19069000 18055000 16098000 15725000
Total Liabilities & Equity 46735000 39471000 34508000 35291000 34408000 31266000 31827000 32732000 32666000 33559000 33699000 33005000 32686000 30869000 27767000
Standardized Annual Income Statement
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Sales Revenue 89597000 72148000 71309000 68619000 65017000 59074000 56223000 53417000 50521000 50208000 48815000 47220000 48230000 48283000 46927000
Total Revenue 89597000 72148000 71309000 68619000 65017000 59074000 56223000 53417000 50521000 50208000 48815000 47220000 48230000 48283000 46927000
Direct Costs 60025000 49205000 48401000 45210000 42553000 38504000 36665000 34941000 33194000 32858000 31663000 30757000 31729000 31556000 30729000
Gross Profit 29572000 22943000 22908000 23409000 22464000 20570000 19558000 18476000 17327000 17350000 17152000 16463000 16501000 16727000 16198000
Selling General & Admin 18526000 15367000 17413000 15376000 15129000 14115000 13281000 12865000 12244000 12593000 12006000 11688000 11074000 10515000 9738000
Depreciation & Amortization 1399000 1262000 1477000 1447000 1489000 1484000 1485000 1462000 1523000 1480000 1586000 1614000 1539000 1366000 1162000
Other Operating Expense 0 0 0 0 0 0 0 0 0 0 0 49000 102000 141000 146000
Total Indirect Operating Costs 19925000 16629000 18890000 16823000 16618000 15599000 14766000 14327000 13767000 14073000 13592000 13351000 12715000 12022000 11046000
Operating Income 9647000 6314000 4018000 6586000 5846000 4971000 4792000 4149000 3560000 3277000 3560000 3112000 3786000 4705000 5152000
Interest Income -848000 -691000 -624000 -633000 -645000 -552000 -516000 -476000 -423000 -371000 -332000 -287000 -280000 -194000 -154000
Other Non-Operating Income -1060000 0 0 -464000 0 0 0 0 0 0 0 0 0 0 0
Total Non-Operating Income -1908000 -691000 -624000 -1097000 -645000 -552000 -516000 -476000 -423000 -371000 -332000 -287000 -280000 -194000 -154000
Earnings Before Tax 7739000 5623000 3394000 5489000 5201000 4419000 4276000 3673000 3137000 2906000 3228000 2825000 3506000 4511000 4998000
Taxation 1904000 1342000 1080000 2042000 2108000 1873000 1578000 1387000 1178000 1067000 1218000 1042000 1311000 1702000 1893000
Extraordinary Items 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Accounting Changes 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Income 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Preference Dividends & Similar -24000 -13000 -7000 -11000 -29000 -12000 -16000 -16000 -14000 -15000 -17000 -13000 0 0 0
Net Income to Common 5811000 4268000 2307000 3436000 3062000 2534000 2682000 2270000 1945000 1824000 1993000 1770000 2195000 2809000 3105000
Average Shares Basic 748000 777000 811000 839000 880000 927000 988000 1059000 1150000 1271000 1401000 1462000 1457000 1481000 1535000
EPS Net Basic 7.77 5.49 2.84 4.09 3.48 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.51 1.9 2.02
EPS Continuing Basic 7.77 5.49 2.84 4.09 3.48 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.51 1.9 2.02
Average Shares Diluted 750000 778000 812000 840000 881000 929000 990000 1061000 1152000 1273000 1403000 1464000 1472000 1510000 1566000
EPS Net Diluted 7.75 5.49 2.84 4.09 3.47 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.49 1.86 1.99
EPS Continuing Diluted 7.75 5.49 2.84 4.09 3.47 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.49 1.86 1.99
Shares Outstanding 731000 763000 801000 830000 866000 910000 960000 1030000 1110000 1241000 1354000 1459000 1470000 1458000 1524500
Standardized Annual Retained Earnings
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Retained Earnings at Start 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000 12191000
Retained Earnings at End 1117000 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000
Standardized Annual Cash Flows
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Net Income 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Adjustments from Inc to Cash 3319000 2282000 3121000 2114000 2153000 2260000 1663000 1616000 1714000 2196000 1769000 1905000 1931000 1616000 1316000
Change in Working Capital 1895000 -2267000 758000 -496000 371000 -22000 568000 209000 89000 314000 73000 366000 -4000 -78000 81000
Cash Flow from Operations 11049000 4296000 6193000 5065000 5617000 4784000 4929000 4111000 3762000 4349000 3852000 4054000 4122000 4347000 4502000
Purchase of Pty Plant & Equip -1791000 -1484000 -1174000 -1123000 -1167000 -1197000 -880000 -940000 -1211000 -1829000 -1329000 -1799000 -3266000 -4010000 -3916000
Purchase of Investments -3094000 -743000 -1373000 -981000 -1192000 -1059000 -1061000 -932000 -1663000 -1665000 -2605000 -1827000 -1358000 -2508000 -842000
Disposal of Investments 2926000 695000 1393000 1114000 1254000 884000 805000 709000 1837000 2120000 1822000 1784000 1425000 2345000 987000
Change in Business Activities – – – -509000 -2356000 – – -203000 – – – – – – –
Other Investing Cash Flows 65000 163000 74000 58000 100000 29000 48000 80000 134000 -63000 -72000 -44000 -27000 50000 56000
Cash Flow from Investing -1894000 -1369000 -1080000 -1441000 -3361000 -1343000 -1088000 -1286000 -903000 -1437000 -2184000 -1886000 -3226000 -4123000 -3715000
Change in ST Debt -941000 220000 -415000 625000 466000 43000 -386000 386000 – – – -1007000 -57000 1041000 23000
Change in LT Debt 2311000 2859000 -326000 119000 2094000 1166000 1191000 938000 1393000 956000 1433000 -27000 -558000 1200000 956000
Change in Equity -4819000 -4195000 -2923000 -3053000 -3456000 -3800000 -3768000 -3545000 -4044000 -2837000 -2513000 -376000 167000 -2120000 -1549000
Payment of Dividends -1704000 -1618000 -1455000 -1288000 -1121000 -957000 -822000 -733000 -704000 -647000 -571000 -391000 -491000 -428000 -276000
Other Financing Cash Flows -38000 -1000 -5000 -10000 -75000 55000 24000 -15000 22000 -21000 0 0 0 0 0
Cash Flow from Financing -5191000 -2735000 -5124000 -3607000 -2092000 -3493000 -3761000 -2969000 -3333000 -2549000 -1651000 -1801000 -939000 -307000 -846000
Effect of Exchange Rate 10000 1000 -12000 13000 -11000 -9000 -5000 -6000 1000 -1000 3000 20000 7000 – –
Cash from Discontinued Ops – 12000 -54000 – – – – – – – – – – – –
Change in Cash 3974000 205000 -77000 30000 153000 -61000 75000 -150000 -473000 362000 20000 387000 -36000 -83000 -59000
Opening Cash 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000 423000
Closing Cash 4690000 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000
Depn & Amortn (CF) 1594000 1410000 1607000 1540000 1590000 1587000 1586000 1562000 1623000 1579000 1684000 1733000 1667000 1464000 1237000
Net Purch of Pty Plant & Equip -1791000 -1484000 -1174000 -1123000 -1167000 -1197000 -880000 -940000 -1211000 -1829000 -1329000 -1799000 -3266000 -4010000 -3916000
Standardized Annual CS Balance Sheet
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Cash & Equivalents %TA 10.035 1.814 1.481 1.666 1.622 1.295 1.464 1.195 1.656 3.022 1.935 1.915 0.750 0.910 1.311
Short Term Investments %TA 1.083 0.405 0.632 0.289 0.291 0.982 0.393 0.565 0.383 0.852 1.398 1.288 1.273 0.807 1.556
Cash & Equivs & ST Investments %TA 11.118 2.219 2.113 1.955 1.912 2.277 1.857 1.760 2.039 3.874 3.332 3.203 2.022 1.717 2.867
Receivables (ST) %TA – – – – – – 0 0 0 0 0 0 0 0 0
Inventories %TA 34.649 33.389 36.400 32.283 30.394 30.250 27.998 27.884 26.327 24.896 24.692 24.993 25.115 24.656 25.728
Current Tax Assets %TA – – – – – – 0.723 0.770 0.664 0.545 0.573 0.630 0.508 0.800 0.580
Other Current Assets %TA 2.005 3.200 2.718 1.952 2.569 1.251 1.093 1.042 0.921 0.697 0.979 0.661 0.658 0.965 0.767
Total Current Assets %TA 47.771 38.808 41.231 36.191 34.876 33.778 31.671 31.455 29.952 30.013 29.577 29.486 28.303 28.138 29.942
Gross Property Plant & Equip %TA 78.532 91.067 103.927 104.673 107.295 114.863 111.361 107.155 106.123 102.303 98.950 97.767 96.301 93.414 90.409
Accumulated Depreciation %TA 37.546 43.769 50.513 48.791 49.317 52.248 48.415 43.505 40.375 36.837 33.402 29.599 26.785 24.215 22.087
Net Property Plant & Equip %TA 40.986 47.298 53.414 55.881 57.978 62.614 62.947 63.650 65.747 65.467 65.548 68.168 69.516 69.199 68.322
LT Investments %TA 0.428 0.942 0.742 1.156 1.064 0.710 1.112 0.852 0.830 1.502 2.991 0.839 0.774 1.649 0.594
Intangible Assets %TA – 0.768 0.878 3.703 3.145 – – – – – – – – – –
Deferred LT Assets %TA 0.728 0.547 0.852 0.476 0.645 0.771 – – – – – – – – –
Other Assets %TA 10.087 11.636 2.883 2.593 2.293 2.127 4.270 4.042 3.471 3.019 1.884 1.506 1.407 1.014 1.142
Total Assets as 100% 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Accounts Payable & Accrued Exps %TA 27.911 23.024 27.857 22.470 23.387 22.382 20.134 19.104 17.612 15.993 14.891 14.737 13.899 13.402 14.031
Accounts Payable %TA 23.289 19.404 23.992 18.673 19.330 18.016 16.100 15.300 14.256 12.968 12.911 12.989 12.571 12.028 12.691
Accrued Expenses %TA 4.622 3.620 3.866 3.797 4.057 4.366 4.034 3.804 3.355 3.025 1.979 1.748 1.328 1.374 1.340
Current Debt %TA 2.379 6.430 5.309 4.055 3.793 3.531 1.734 1.329 0.144 1.764 0.107 1.672 3.124 3.576 0.400
Other Current Liabilities %TA 9.787 9.009 8.844 7.750 7.620 7.644 7.503 6.685 5.841 5.757 6.128 5.875 7.520 8.131 9.119
Total Current Liabilities %TA 40.077 38.464 42.011 34.275 34.800 33.557 29.371 27.117 23.596 23.514 21.125 22.285 24.543 25.109 23.550
LT Debt & Lease %TA 44.224 42.482 41.703 44.102 41.833 36.925 33.981 30.814 27.643 20.963 19.398 13.719 15.416 18.063 15.576
Deferred LT Liabilities %TA 2.180 2.265 2.397 2.275 2.218 2.332 2.598 3.119 3.582 3.680 3.258 1.812 2.019 2.170 2.647
Minority Interests %TA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Liabilities %TA 10.444 11.793 3.330 2.706 2.450 2.706 2.730 2.737 2.758 2.578 2.472 4.408 2.784 2.507 1.595
Total Liabilities %TA 96.925 95.004 89.440 83.358 81.301 75.520 68.681 63.788 57.580 50.735 46.254 42.224 44.762 47.851 43.368
Common Share Capital %TA 0.783 0.965 1.162 1.176 1.258 1.455 1.508 1.573 1.699 1.850 2.009 2.209 2.249 2.362 2.744
Additional Paid-In Capital %TA 0.193 – – 0.062 – – – – 0.080 0.042 0.033 0.018 0.847 0.052 0.367
Retained Earnings %TA 2.390 4.375 10.003 15.372 18.138 24.285 30.135 34.691 40.482 47.236 51.548 55.467 52.160 49.710 53.517
Accum Other Comprehens Income %TA -0.291 -0.345 -0.606 0.031 -0.698 -1.260 -0.324 -0.052 0.159 0.137 0.157 0.082 -0.018 0.026 0.004
Other Equity %TA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Equity %TA 3.075 4.996 10.560 16.642 18.699 24.480 31.319 36.212 42.420 49.265 53.746 57.776 55.238 52.149 56.632
Total Liabilities & Equity %TA 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Standardized Annual CS Income Statement
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Sales Revenue %TR 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Total Revenue (100% TR) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Direct Costs %TR 66.994 68.200 67.875 65.886 65.449 65.179 65.214 65.412 65.703 65.444 64.863 65.136 65.787 65.356 65.483
Gross Profit %TR 33.006 31.800 32.125 34.114 34.551 34.821 34.786 34.588 34.297 34.556 35.137 34.864 34.213 34.644 34.517
Selling General & Admin %TR 20.677 21.299 24.419 22.408 23.269 23.894 23.622 24.084 24.235 25.082 24.595 24.752 22.961 21.778 20.751
Depreciation & Amortization %TR 1.561 1.749 2.071 2.109 2.290 2.512 2.641 2.737 3.015 2.948 3.249 3.418 3.191 2.829 2.476
Other Operating Expense %TR 0 0 0 0 0 0 0 0 0 0 0 0.104 0.211 0.292 0.311
Total Indirect Operating Costs %TR 22.238 23.048 26.490 24.517 25.559 26.406 26.263 26.821 27.250 28.029 27.844 28.274 26.363 24.899 23.539
Operating Income %TR 10.767 8.751 5.635 9.598 8.991 8.415 8.523 7.767 7.047 6.527 7.293 6.590 7.850 9.745 10.979
Interest Income %TR -0.946 -0.958 -0.875 -0.922 -0.992 -0.934 -0.918 -0.891 -0.837 -0.739 -0.680 -0.608 -0.581 -0.402 -0.328
Other Non-Operating Income %TR -1.183 0 0 -0.676 0 0 0 0 0 0 0 0 0 0 0
Total Non-Operating Income %TR -2.130 -0.958 -0.875 -1.599 -0.992 -0.934 -0.918 -0.891 -0.837 -0.739 -0.680 -0.608 -0.581 -0.402 -0.328
Earnings Before Tax %TR 8.638 7.794 4.760 7.999 7.999 7.480 7.605 6.876 6.209 5.788 6.613 5.983 7.269 9.343 10.651
Taxation %TR 2.125 1.860 1.515 2.976 3.242 3.171 2.807 2.597 2.332 2.125 2.495 2.207 2.718 3.525 4.034
Extraordinary Items %TR 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Accounting Changes %TR 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Income %TR 6.512 5.934 3.245 5.023 4.757 4.310 4.799 4.280 3.878 3.663 4.118 3.776 4.551 5.818 6.617
Preference Dividends & Similar %TR -0.027 -0.018 -0.010 -0.016 -0.045 -0.020 -0.028 -0.030 -0.028 -0.030 -0.035 -0.028 0 0 0
Net Income to Common %TR 6.486 5.916 3.235 5.007 4.710 4.290 4.770 4.250 3.850 3.633 4.083 3.748 4.551 5.818 6.617

Ind ratios

Average of firm & competitors
Exchange rate used is that of the Year End reported date
Profitability Ratios 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
ROA % (Net) 13.42 13.94 11.51 11.53 11.59 10.81 10.73 9.37 8.47 7.81 7.88 6.84 6.80 8.88 10.54
ROE % (Net) 4820.14 86.55 28.82 122.64 70.08 45.67 34.60 24.82 20.30 18.02 17.29 15.02 15.41 19.37 20.87
ROI % (Operating) 38.02 34.56 30.28 32.67 31.14 28.64 27.18 23.90 21.19 19.45 19.02 17.09 17.22 21.32 25.71
EBITDA Margin % 11.00 11.16 9.53 11.04 11.44 11.10 11.12 10.62 10.14 9.69 9.84 9.21 9.03 10.62 11.21
Calculated Tax Rate % 27.39 23.97 30.93 34.87 35.70 36.37 35.17 35.68 35.25 35.10 35.54 34.48 35.73 36.11 36.52
Revenue per Employee 256372.33 243377.00 243308.67 228163.67 221625.33 223031.67 219168.33 212485.00 211919.00 205198.00 207491.67 200611.67 208602.67 211477.00 219271.33
Liquidity Ratios 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
Quick Ratio 0.34 0.16 0.15 0.19 0.19 0.21 0.19 0.19 0.21 0.23 0.18 0.20 0.14 0.12 0.21
Current Ratio 1.13 0.96 0.96 1.00 1.04 1.10 1.14 1.15 1.15 1.24 1.21 1.18 1.08 1.03 1.19
Net Current Assets % TA 4.73 -1.21 -1.25 -0.38 1.26 2.84 3.81 3.84 3.34 5.14 4.39 3.87 1.73 0.27 4.22
Debt Management 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
LT Debt to Equity 8.60 4.57 2.32 6.60 2.65 1.79 1.14 0.87 0.57 0.56 0.49 0.40 0.45 0.50 0.42
Total Debt to Equity 9.02 5.26 2.63 7.36 2.83 1.88 1.20 0.94 0.66 0.60 0.54 0.45 0.54 0.62 0.46
Interest Coverage 11.91 10.57 10.90 11.57 11.15 11.47 14.03 11.32 12.05 10.79 11.26 9.80 10.40 16.04 24.45
Asset Management 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
Total Asset Turnover 2.18 2.19 2.29 2.25 2.20 2.14 2.07 1.97 1.90 1.87 1.85 1.83 1.89 1.88 2.03
Receivables Turnover 69.55 69.04 70.62 69.12 66.49 65.19 65.04 63.72 64.69 70.83 78.97 84.99 85.55 75.31 1795.87
Inventory Turnover 6.36 5.94 6.04 6.00 5.88 5.78 5.69 5.58 5.64 5.68 5.73 5.65 5.67 5.59 5.83
Accounts Payable Turnover 11.65 11.48 11.62 12.01 12.18 12.63 12.77 12.62 12.72 12.95 12.91 12.92 13.19 12.66 13.82
Accrued Expenses Turnover 34.29 34.82 35.06 33.65 32.05 31.78 31.69 31.57 32.00 35.59 41.49 46.08 53.48 56.60 57.14
Property Plant & Equip Turnover 5.33 4.60 4.46 4.24 4.00 3.75 3.54 3.34 3.18 3.08 3.00 2.96 3.06 3.15 3.51
Cash & Equivalents Turnover 33.55 78.47 80.27 75.51 78.33 78.38 78.81 71.31 54.43 59.72 66.91 76.72 131.73 118.10 100.31
Per Share 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
Cash Flow per Share 15.04 9.00 9.47 8.58 8.13 7.02 6.67 5.46 5.14 4.88 4.01 4.21 4.00 3.67 3.84
Book Value per Share 11.24 8.69 9.35 11.57 12.18 12.97 14.24 14.72 15.83 15.27 14.84 14.39 13.13 12.59 12.64

charts for ratios

Lowe's Companies Inc (NYS: LOW)
Exchange rate used is that of the Year End reported date
Profitability Ratios Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
ROA % (Net) 13.57 11.61 6.65 9.92 9.3 8.09 8.38 7.01 5.93 5.38 6.04 5.4 6.93 9.61 12
ROE % (Net) 343.27 152.88 48.76 56.17 43.2 28.98 24.80 17.83 12.93 10.44 10.84 9.63 12.89 17.70 20.71
ROI % (Operating) 43.48 30.78 18.86 29.35 27.11 23.94 21.99 18.36 15.16 13.20 14.62 12.93 16.19 21.98 27.17
EBITDA Margin % 11.26 10.7 7.60 10.96 11.30 10.93 11.16 10.50 10.1 9 10.5 10.01 11.04 12.6 13.45
Calculated Tax Rate % 24.6 23.87 31.82 37.20 40.53 42.39 36.90 37.76 37.55 36.72 37.73 36.88 37.39 37.73 37.88
Revenue per Employee 264245 226082 238350 221960 220571 219394 211945 204442 206775 199177 209184 198116 211190 224147 224076
Liquidity Ratios Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
Quick Ratio 0.28 0.06 0.05 0.06 0.1 0.07 0.06 0.06 0.09 0.16 0.2 0.14 0.08 0.07 0.12
Current Ratio 1.19 1.01 0.98 1.06 1.00 1.01 1.08 1.16 1.27 1.3 1.40 1.32 1.2 1.12 1.27
Net Current Assets % TA 7.69 0.34 -0.78 1.92 0.1 0.22 2.3 4.34 6.36 6.50 8.45 7.2 3.76 3.03 6.39
Debt Management Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
LT Debt to Equity 14.38 8.5 3.95 2.65 2.24 1.51 1.08 0.85 0.65 0.4 0.36 0.24 0.28 0.35 0.28
Total Debt to Equity 15.16 9.79 4.45 2.89 2.44 1.65 1.14 0.89 0.66 0.46 0.4 0.27 0.34 0.41 0.28
Interest Coverage 11.38 9.14 6.44 10.40 9.06 9.01 9.29 9 8.42 8.83 10.72 10.84 13.52 24.25 33.45
Asset Management Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
Total Asset Turnover 2.08 1.96 2.05 1.97 1.95 1.9 1.75 1.64 1.53 1.47 1.47 1.44 1.52 1.65 1.79
Receivables Turnover – – – – – – – – – – – – – – 5228.44
Inventory Turnover 4.09 3.82 4.04 4.14 4.3 4.19 4.07 3.9 3.92 3.94 3.82 3.7 4.01 4.28 4.44
Accounts Payable Turnover 9.69 9.08 9.6 10.39 10.41 11.01 11.13 11.1 11.25 11.35 11.33 11.28 12.37 13.38 14.81
Accrued Expenses Turnover 50.07 52.37 53 50.30 46.34 44.72 44.58 45.76 48.00 58.7 78.70 93.67 112.73 121.65 118.23
Property Plant & Equip Turnover 4.75 3.90 3.75 3.5 3.24 2.99 2.76 2.53 2.33 2.24 2.20 2.09 2.19 2.40 2.66
Cash & Equivalents Turnover 33.2 117.92 130.13 120.08 132.9 136.02 131.57 114.94 65.16 59.30 76.2 107.98 183.89 150.13 119.58
Per Share Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
Cash Flow per Share 14.81 5.54 7.66 6.05 6.28 5.17 5.00 3.9 3.28 3.37 2.76 2.78 2.84 2.94 2.94
Book Value per Share 1.97 2.58 4.55 7.08 7.4 8.41 10.38 11.51 12.48 13.32 13.38 13.07 12.28 11.04 10.31

Profitability ratios

ROA % (Net) 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 13.57 11.61 6.65 9.92 9.27 8.09 8.3800000000000008 7.01 5.93 5.38 6.04 5.44 6.93 9.61 11.87 ROE % (Net) 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 343.27 152.88 48.76 56.17 43.2 28.98 24.8 17.829999999999998 12.93 10.44 10.84 9.6300000000000008 12.89 17.7 20.71 ROI % (Operating) 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 43.48 30.78 18.86 29.35 27.11 23.94 21.99 18.36 15.16 13.2 14.62 12.93 16.190000000000001 21.98 27.17 EBITDA Margin % 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 11.26 10.69 7.6 10.96 11.3 10.93 11.16 10.5 10.06 9.4700000000000006 10.54 10.01 11.04 12.57 13.45 Calculated Tax Rate % 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 24.6 23.87 31.82 37.200000000000003 40.53 42.39 36.9 37.76 37.549999999999997 36.72 37.72 9999999999997 36.880000000000003 37.39 37.729999999999997 37.880000000000003

Revenue per employee

Revenue per Employee 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 264245 226082 238350 221960 220571 219394 211945 204442 206775 199177 209184 198116 211190 224147 224076

Liquidity Ratios

Quick Ratio 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 0.28000000000000003 0.06 0.05 0.06 0.05 7.0000000000000007E-2 0.06 0.06 0.09 0.16 0.16 0.14000000000000001 0.08 7.0000000000000007E-2 0.12 Current Ratio 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 1.19 1.01 0.98 1.06 1 1.01 1.08 1.1599999999999999 1.27 1.28 1.4 1.32 1.1499999999999999 1.1200000000000001 1.27 Net Current Assets % TA 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115

Debt Management Ratios

LT Debt to Equity 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 14.38 8.5 3.95 2.65 2.2400000000000002 1.51 1.08 0.85 0.65 0.43 0.36 0.24 0.28000000000000003 0.35 0.28000000000000003 Total Debt to Equity 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 15.16 9.7899999999999991 4.45 2.89 2.44 1.65 1.1399999999999999 0.89 0.66 0.46 0.36 0.27 0.34 0.41 0.28000000000000003 Interest Coverage 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 11.38 9.14 6.44 10.4 9.06 9.01 9.2899999999999991 8.7200000000000006 8.42 8.83 10.72 10.84 13.52 24.25 33.450000000000003

Asset Management Ratios

Total Asset Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 2.08 1.96 2.0499999999999998 1.97 1.95 1.88 1.75 1.64 1.53 1.47 1.47 1.44 1.52 1.65 1.79 Property Plant & Equip Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 4.75 3.9 3.75 3.47 3.24 2.99 2.76 2.5299999999999998 2.33 2.2400000000000002 2.2000000000000002 2.09 2.19 2.4 2.66

Asset Management Ratios

Receivables Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5228.4399999999996 Inventory Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 4.09 3.82 4.04 4.1399999999999997 4.2699999999999996 4.1900000000000004 4.07 3.94 3.92 3.94 3.82 3.74 4.01 4.2 8 4.4400000000000004 Accounts Payable Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 9.69 9.08 9.6199999999999992 10.39 10.41 11.01 11.13 11.08 11.25 11.35 11.33 11.28 12.37 13.38 14.81 Accrued Expenses Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 50.07 52.37 53.48 50.3 46.34 44.72 44.58 45.76 48 58.73 78.7 93.67 112.73 121.65 118.23 Cash & Equivalents Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 33.24 117.92 130.13 120.08 132.85 136.02000000000001 131.57 114.94 65.16 59.3 76.239999999999995 107.98 183.89 150.13 119.58 Total Asset Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 2.08 1.96 2.0499999999999998 1.97 1.95 1.88 1.75 1.64 1.53 1.47 1.47 1.44 1.52 1.65 1.79 Property Plant & Equip Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 4.75 3.9 3.75 3.47 3.24 2.99 2.76 2.5299999999999998 2.33 2.2400000000000002 2.2000000000000002 2.09 2.19 2.4 2.66

Per Share data

Cash Flow per Share 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 14.81 5.54 7.66 6.05 6.28 5.17 5 3.89 3.28 3.37 2.76 2.78 2.84 2.94 2.94 Book Value per Share 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 1.97 2.58 4.55 7.08 7.43 8.41 10.38 11.51 12.48 13.32 13.38 13.07 12.28 11.04 10.31

comparison

Ratio comparison
01/29/2021 01/31/2021 01/31/2021 12/29/2019
Profitability Ratios LOW HD WMT Average
ROA % (Net) 13.57 21.18 5.51 13.42
ROE % (Net) 343.27 14099.83 17.32 4820.14
ROI % (Operating) 43.48 53.20 17.37 38.02
EBITDA Margin % 11.26 15.67 6.07 11.00
Calculated Tax Rate % 24.60 24.22 33.35 27.39
Revenue per Employee 264245 262427 242445 256372
Liquidity Ratios LOW HD WMT Average
Quick Ratio 0.28 0.47 0.26 0.34
Current Ratio 1.19 1.23 0.97 1.13
Net Current Assets % TA 7.69 7.52 -1.02 4.73
Debt Management LOW HD WMT Average
LT Debt to Equity 14.38 10.86 0.56 8.60
Total Debt to Equity 15.16 11.29 0.6 9.02
Interest Coverage 11.38 14.06 10.28 11.91
Asset Management LOW HD WMT Average
Total Asset Turnover 2.08 2.17 2.28 2.18
Receivables Turnover – 51.97 87.13 69.55
Inventory Turnover 4.09 5.60 9.40 6.36
Accounts Payable Turnover 9.69 13.66 11.60 11.65
Accrued Expenses Turnover 50.07 27.32 25.49 34.29
Property Plant & Equip Turnover 4.75 5.58 5.65 5.33
Cash & Equivalents Turnover 33.24 26.42 40.99 33.55

Market value ratios

Current Market Multiples MCD JACK WEN
Market Cap/Earnings (TTM) 32.49 23.5 46.56
Market Cap/Equity (MRQ) -18.87 -2.66 9.42
Market Cap/Revenue (TTM) 8.4 2.06 2.91
Market Cap/EBIT (TTM) 21.19 11.13 19.38
Market Cap/EBITDA (TTM) 17.29 8.7 12.73
Enterprise Value/Earnings (TTM) 42.17 47.28 78.52 Obtained from
Enterprise Value/Equity (MRQ) -24.49 -5.35 15.89
Enterprise Value/Revenue (TTM) 10.9 4.15 4.91 D&B Hoovers
Enterprise Value/EBIT (TTM) 27.5 22.4 32.69 Annual Ratios
Enterprise Value/EBITDA (TTM) 22.44 17.5 21.47
Valuation Ratios MCD JACK WEN Industry Sector
P/E Ratio 32.76 24.17 47.65 57.14 92.59
Price/Revenue 8.47 2.11 2.98 3.97 2.35 Obtained from
Price/Book – – 9.42 0 6.58
Price to Cash Flow per Share 26.16 15.05 19.52 31.25 1.57 D&B Hoovers
Price to Free Cash Flow per Share 37.91 17.41 28.07 56.18 25.58 Ratio Comparisons

Analysis LOW

Report Date Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
Raw numbers
Total Assets 46735000 39471000 34508000 35291000 34408000 31266000 31827000 32732000 32666000 33559000 33699000 33005000 32686000 30869000 27767000
Total Equity 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000 18112000 19069000 18055000 16098000 15725000
Total Revenue 89597000 72148000 71309000 68619000 65017000 59074000 56223000 53417000 50521000 50208000 48815000 47220000 48230000 48283000 46927000
Operating Income 9647000 6314000 4018000 6586000 5846000 4971000 4792000 4149000 3560000 3277000 3560000 3112000 3786000 4705000 5152000
Net Income 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Shares Outstanding 731000 763000 801000 830000 866000 910000 960000 1030000 1110000 1241000 1354000 1459000 1470000 1458000 1524500
EPS Net Diluted 7.75 5.49 2.84 4.09 3.47 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.49 1.86 1.99
Cash dividends per share 2.30 2.13 1.85 1.58 1.33 1.07 0.87 0.70 0.62 0.53 0.42 0.36 0.34 0.29 0.18
Number of full time employees 220000 200000 190000 200000 190000 180000 175000 167000 160000 161000 161000 166000 164000 160000 157000
Cash Flow from Operations 11049000 4296000 6193000 5065000 5617000 4784000 4929000 4111000 3762000 4349000 3852000 4054000 4122000 4347000 4502000
Recent growth Last year Last 2 years Last 3 years Last 5 years Last 7 years Last 10 years
Total Assets 18.4% 16.4% 9.8% 6.3% 5.2% 3.3%
Total Equity -27.1% -37.2% -37.5% -25.9% -26.0% -22.4%
Total Revenue 24.2% 12.1% 9.3% 6.6% 7.7% 6.3%
Operating Income 52.8% 54.9% 13.6% 10.5% 12.8% 10.5%
Net Income 36.3% 58.8% 19.2% 13.5% 14.3% 11.2%
Shares Outstanding -4.2% -4.5% -4.1% -3.3% -4.8% -6.0%
EPS Net Diluted 41.2% 65.2% 23.7% 17.4% 20.2% 18.5%
Cash dividends per share 8.0% 11.5% 13.3% 11.6% 18.5% 18.5%
Number of full time employees 10.0% 7.6% 3.2% 3.0% 4.0% 3.2%
Cash Flow from Operations 157.2% 33.6% 29.7% 14.5% 15.2% 11.1%
Raw numbers Growth Numbers
Data sorted for charts
1 4 5 6 7 8 9 10 11 12 13
1 Total Assets Total Equity Total Revenue Operating Income Net Income Shares Outstanding EPS Net Diluted Cash dividends per share Number of full time employees Cash Flow from Operations
Total Assets Total Equity Total Revenue Operating Income Net Income Shares Outstanding EPS Net Diluted Cash dividends per share Number of full time employees Cash Flow from Operations
Feb-07 16 27767000 15725000 46927000 5152000 3105000 1524500 1.99 0.18 157000 4502000 Feb-07
Feb-08 15 30869000 16098000 48283000 4705000 2809000 1458000 1.86 0.29 160000 4347000 Feb-08 11.2% 2.4% 2.9% -8.7% -9.5% -4.4% -6.5% 61.1% 1.9% -3.4%
Jan-09 14 32686000 18055000 48230000 3786000 2195000 1470000 1.49 0.335 164000 4122000 Jan-09 5.9% 12.2% -0.1% -19.5% -21.9% 0.8% -19.9% 15.5% 2.5% -5.2%
Jan-10 13 33005000 19069000 47220000 3112000 1783000 1459000 1.21 0.355 166000 4054000 Jan-10 1.0% 5.6% -2.1% -17.8% -18.8% -0.7% -18.8% 6.0% 1.2% -1.6%
Jan-11 12 33699000 18112000 48815000 3560000 2010000 1354000 1.42 0.42 161000 3852000 Jan-11 2.1% -5.0% 3.4% 14.4% 12.7% -7.2% 17.4% 18.3% -3.0% -5.0%
Feb-12 11 33559000 16533000 50208000 3277000 1839000 1241000 1.43 0.53 161000 4349000 Feb-12 -0.4% -8.7% 2.9% -7.9% -8.5% -8.3% 0.7% 26.2% 0.0% 12.9%
Feb-13 10 32666000 13857000 50521000 3560000 1959000 1110000 1.69 0.62 160000 3762000 Feb-13 -2.7% -16.2% 0.6% 8.6% 6.5% -10.6% 18.2% 17.0% -0.6% -13.5%
Jan-14 9 32732000 11853000 53417000 4149000 2286000 1030000 2.14 0.7 167000 4111000 Jan-14 0.2% -14.5% 5.7% 16.5% 16.7% -7.2% 26.6% 12.9% 4.4% 9.3%
Jan-15 8 31827000 9968000 56223000 4792000 2698000 960000 2.71 0.87 175000 4929000 Jan-15 -2.8% -15.9% 5.3% 15.5% 18.0% -6.8% 26.6% 24.3% 4.8% 19.9%
Jan-16 7 31266000 7654000 59074000 4971000 2546000 910000 2.73 1.07 180000 4784000 Jan-16 -1.8% -23.2% 5.1% 3.7% -5.6% -5.2% 0.7% 23.0% 2.9% -2.9%
Feb-17 6 34408000 6434000 65017000 5846000 3093000 866000 3.47 1.33 190000 5617000 Feb-17 10.0% -15.9% 10.1% 17.6% 21.5% -4.8% 27.1% 24.3% 5.6% 17.4%
Feb-18 5 35291000 5873000 68619000 6586000 3447000 830000 4.09 1.58 200000 5065000 Feb-18 2.6% -8.7% 5.5% 12.7% 11.4% -4.2% 17.9% 18.8% 5.3% -9.8%
Feb-19 4 34508000 3644000 71309000 4018000 2314000 801000 2.84 1.85 190000 6193000 Feb-19 -2.2% -38.0% 3.9% -39.0% -32.9% -3.5% -30.6% 17.1% -5.0% 22.3%
Jan-20 3 39471000 1972000 72148000 6314000 4281000 763000 5.49 2.13 200000 4296000 Jan-20 14.4% -45.9% 1.2% 57.1% 85.0% -4.7% 93.3% 15.1% 5.3% -30.6%
Jan-21 2 46735000 1437000 89597000 9647000 5835000 731000 7.75 2.3 220000 11049000 Jan-21 18.4% -27.1% 24.2% 52.8% 36.3% -4.2% 41.2% 8.0% 10.0% 157.2%
Important ratios (DuPont and others)
1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Inventories 16193000 13179000 12561000 11393000 10458000 9458000 8911000 9127000 8600000 8355000 8321000 8249000 8209000 7611000 7144000
Direct Costs 60025000 49205000 48401000 45210000 42553000 38504000 36665000 34941000 33194000 32858000 31663000 30757000 31729000 31556000 30729000
Profit margin 6.5% 5.9% 3.2% 5.0% 4.8% 4.3% 4.8% 4.3% 3.9% 3.7% 4.1% 3.8% 4.6% 5.8% 6.6%
TATO 1.92 1.83 2.07 1.94 1.89 1.89 1.77 1.63 1.55 1.50 1.45 1.43 1.48 1.56 1.69
ROA 12.5% 10.8% 6.7% 9.8% 9.0% 8.1% 8.5% 7.0% 6.0% 5.5% 6.0% 5.4% 6.7% 9.1% 11.2%
EM 32.52 20.02 9.47 6.01 5.35 4.08 3.19 2.76 2.36 2.03 1.86 1.73 1.81 1.92 1.77
ROE 406.1% 217.1% 63.5% 58.7% 48.1% 33.3% 27.1% 19.3% 14.1% 11.1% 11.1% 9.4% 12.2% 17.4% 19.7%
Inventory turnover 3.7 3.7 3.9 4.0 4.1 4.1 4.1 3.8 3.9 3.9 3.8 3.7 3.9 4.1 4.3
From standardized CS Income statement
Gross Profit %TR 33.006 31.8 32.125 34.114 34.551 34.821 34.786 34.588 34.297 34.556 35.137 34.864 34.213 34.644 34.517
Operating Income %TR 10.767 8.751 5.635 9.598 8.991 8.415 8.523 7.767 7.047 6.527 7.293 6.59 7.85 9.745 10.979
Net Income %TR 6.512 5.934 3.245 5.023 4.757 4.31 4.799 4.28 3.878 3.663 4.118 3.776 4.551 5.818 6.617
Data sorted for charts
1 6 7 8 9 10 12 15 16 17
1 Profit margin TATO ROA EM ROE Inventory turnover Gross Profit %TR Operating Income %TR Net Income %TR
Feb-07 16 6.6% 1.69 11.2% 1.77 19.7% 4.30 34.52 10.98 6.62
Feb-08 15 5.8% 1.56 9.1% 1.92 17.4% 4.15 34.64 9.75 5.82
Jan-09 14 4.6% 1.48 6.7% 1.81 12.2% 3.87 34.21 7.85 4.55
Jan-10 13 3.8% 1.43 5.4% 1.73 9.4% 3.73 34.86 6.59 3.78
Jan-11 12 4.1% 1.45 6.0% 1.86 11.1% 3.81 35.14 7.29 4.12
Feb-12 11 3.7% 1.50 5.5% 2.03 11.1% 3.93 34.56 6.53 3.66
Feb-13 10 3.9% 1.55 6.0% 2.36 14.1% 3.86 34.30 7.05 3.88
Jan-14 9 4.3% 1.63 7.0% 2.76 19.3% 3.83 34.59 7.77 4.28
Jan-15 8 4.8% 1.77 8.5% 3.19 27.1% 4.11 34.79 8.52 4.80
Jan-16 7 4.3% 1.89 8.1% 4.08 33.3% 4.07 34.82 8.42 4.31
Feb-17 6 4.8% 1.89 9.0% 5.35 48.1% 4.07 34.55 8.99 4.76
Feb-18 5 5.0% 1.94 9.8% 6.01 58.7% 3.97 34.11 9.60 5.02
Feb-19 4 3.2% 2.07 6.7% 9.47 63.5% 3.85 32.13 5.64 3.25
Jan-20 3 5.9% 1.83 10.8% 20.02 217.1% 3.73 31.80 8.75 5.93
Jan-21 2 6.5% 1.92 12.5% 32.52 406.1% 3.71 33.01 10.77 6.51
Cost of debt, historical costs 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Total long-term debt 21780000 17365000 15501000 15858000 15189000 12606000 11367000 10135000 9077000 7627000 6573000 5080000 5073000 5616000 4413000
Cash paid for interest, net of amount capitalized 824000 671000 635000 654000 619000 535000 504000 454000 444000 361000 319000 314000 309000 198000 179000
Implied interest rate 3.78% 3.86% 4.10% 4.12% 4.08% 4.24% 4.43% 4.48% 4.89% 4.73% 4.85% 6.18% 6.09% 3.53% 4.06%
Recent growth Last year Last 2 years Last 3 years Last 5 years Last 7 years Last 10 years
Cash dividends per share 8.0% 11.5% 13.3% 11.6% 18.5% 18.5%
Historical payout ratio 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Net Income 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Payment of Dividends -1704000 -1618000 -1455000 -1288000 -1121000 -957000 -822000 -733000 -704000 -647000 -571000 -391000 -491000 -428000 -276000
Payout ratio 29.2% 37.8% 62.9% 37.4% 36.2% 37.6% 30.5% 32.1% 35.9% 35.2% 28.4% 21.9% 22.4% 15.2% 8.9%
ROE 406.1% 217.1% 63.5% 58.7% 48.1% 33.3% 27.1% 19.3% 14.1% 11.1% 11.1% 9.4% 12.2% 17.4% 19.7%
Sustainable growth 287.47% 135.04% 23.57% 36.76% 30.65% 20.76% 18.82% 13.10% 9.06% 7.21% 7.95% 7.30% 9.44% 14.79% 17.99%
Tax rate 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Taxation 1904000 1342000 1080000 2042000 2108000 1873000 1578000 1387000 1178000 1067000 1218000 1042000 1311000 1702000 1893000
Earnings Before Tax 7739000 5623000 3394000 5489000 5201000 4419000 4276000 3673000 3137000 2906000 3228000 2825000 3506000 4511000 4998000
Implied rate 24.6% 23.9% 31.8% 37.2% 40.5% 42.4% 36.9% 37.8% 37.6% 36.7% 37.7% 36.9% 37.4% 37.7% 37.9%
Capital structure (book) 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Total long-term debt 21780000 17365000 15501000 15858000 15189000 12606000 11367000 10135000 9077000 7627000 6573000 5080000 5073000 5616000 4413000
Total Equity 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000 18112000 19069000 18055000 16098000 15725000
Value of firm (V) 23217000 19337000 19145000 21731000 21623000 20260000 21335000 21988000 22934000 24160000 24685000 24149000 23128000 21714000 20138000
D/V 93.8% 89.8% 81.0% 73.0% 70.2% 62.2% 53.3% 46.1% 39.6% 31.6% 26.6% 21.0% 21.9% 25.9% 21.9%
E/V 6.2% 10.2% 19.0% 27.0% 29.8% 37.8% 46.7% 53.9% 60.4% 68.4% 73.4% 79.0% 78.1% 74.1% 78.1%

LOW

Total Assets 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 27767000 30869000 32686000 33005000 33699000 33559000 32666000 32732000 31827000 31266000 34408000 35291000 34508000 39471000 46735000

LOW

Profit margin 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 6.6166599185969704E-2 5.8177826564215149E-2 4.5511092680904003E-2 3.7759423972892843E-2 4.1175868073338111E-2 3.6627629063097515E-2 3.877595455355199E-2 4.2795364771514688E-2 4.798747843409281E-2 4.30984866438704E-2 4.7572173431564051E-2 5.023390023171425E-2 3.2450321838758081E-2 5.9336364140378114E-2 6.5124948379968073E-2

LOW

TATO 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.6900277307595346 1.5641258220220933 1.4755552836076609 1.4306923193455536 1.4485593044303986 1.4961113263208081 1.5465927876079104 1.6319503849443968 1.7665189933075691 1.889400626879038 1.8895896303185307 1.944376753279873 2.066448359800626 1.8278736287400876 1.9171284904247352

LOW

ROA 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.11182338747434005 9.0997440798211787E-2 6.7154133268065838E-2 5.4022117860930162E-2 5.9645686815632509E-2 5.4799010697577401E-2 5.9970611645135619E-2 6.9839912012709268E-2 8.4770792094762321E-2 8.1430307682466577E-2 8.9891885607998143E-2 9.7673627837125618E-2 6.7056914338704074E-2 0.10845937523751616 0.124852893976677

LOW

EM 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.7657869634340222 1.9175673996769784 1.810357241761285 1.7308196549373329 1.8605896643109541 2.0298191495796285 2.3573645089124629 2.7614949801737958 3.1929173354735152 4.0849229161222889 5.3478396021137709 6.0090243487144557 9.4698133918770591 20.015720081135903 32.522616562282536

LOW

ROE 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.19745627980922098 0.17449372592868675 0.12157297147604541 9.3502543395039078E-2 0.11097614840989399 0.11123208129196152 0.14137259147001516 0.19286256643887623 0.27066613162118786 0.33263652991899662 0.4807273857631334 0.58692320790056185 0.63501646542261259 2.170892494929006 4.0605427974947812

LOW

Inventory turnover 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 4.3013717805151179 4.1461043226908423 3.8651480082835912 3.728573160383077 3.8051916836918638 3.9327348892878518 3.8597674418604653 3.8283116029363429 4.1145774884973632 4.0710509621484459 4.0689424364123159 3.9682261037479152 3.8532760130562855 3.7335913195234842 3.7068486383005004

Du Pont Analysis

Profit margin 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 6.6166599185969704E-2 5.8177826564215149E-2 4.5511092680904003E-2 3.7759423972892843E-2 4.1175868073338111E-2 3.6627629063097515E-2 3.877595455355199E-2 4.2795364771514688E-2 4.798747843409281E-2 4.30984866438704E-2 4.7572173431564051E-2 5.023390023171425E-2 3.2450321838758081E-2 5.9336364140378114E-2 6.5124948379968073E-2 ROA 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.11182338747434005 9.0997440798211787E-2 6.7154133268065838E-2 5.4022117860930162E-2 5.9645686815632509E-2 5.4799010697577401E-2 5.9970611645135619E-2 6.9839912012709268E-2 8.4770792094762321E-2 8.1430307682466577E-2 8.9891885607998143E-2 9.7673627837125618E-2 6.7056914338704074E-2 0.10845937523751616 0.124852893976677 ROE 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.19745627980922098 0.17449372592868675 0.12157297147604541 9.3502543395039078E-2 0.11097614840989399 0.11123208129196152 0.14137259147001516 0.19286256643887623 0.27066613162118786 0.33263652991899662 0.4807273857631334 0.58692320790056185 0.63501646542261259 2.170892494929006 4.0605427974947812 TATO 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43 861 44225 1.6900277307595346 1.5641258220220933 1.4755552836076609 1.4306923193455536 1.4485593044303986 1.4961113263208081 1.5465927876079104 1.6319503849443968 1.7665189933075691 1.889400626879038 1.8895896303185307 1.944376753279873 2.066448359800626 1.8278736287400876 1.9171284904247352 EM 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.7657869634340222 1.9175673996769784 1.810357241761285 1.7308196549373329 1.8605896643109541 2.0298191495796285 2.3573645089124629 2.7614949801737958 3.1929173354735152 4.0849229161222889 5.3478396021137709 6.0090243487144557 9.4698133918770591 20.015720081135903 32.522616562282536

Growth

Total Assets 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.11171534555407492 5.8861641128640452E-2 9.7595300740378477E-3 2.1027117103469273E-2 -4.1544259473574874E-3 -2.6609851306653942E-2 2.0204493969264714E-3 -2.7648784064523979E-2 -1.7626543500801173E-2 0.10049254781551853 2.5662636596140542E-2 -2.2186959848119914E-2 0.14382172249913072 0.18403384763497255

Growth

Total Equity 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 2.3720190779014327E-2 0.12156789663312217 5.6161728053170767E-2 -5.0186166028632906E-2 -8.7179770318021155E-2 -0.16185810197786243 -0.14462004762935698 -0.15903146882645747 -0.2321428571428571 -0.15939378102952706 -8.7193036990985351E-2 -0.37953345819853568 -0.45883644346871566 -0.27129817444219062

Growth

Total Revenue 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 2.8895944765273684E-2 -1.097694840834218E-3 -2.0941322828115227E-2 3.377806014400675E-2 2.8536310560278499E-2 6.234066284257489E-3 5.7322697492131924E-2 5.2530093415953827E-2 5.0708784661081863E-2 0.10060263398449409 5.5400895150499174E-2 3.9201970299771238E-2 1.176569577472697E-2 0.24185008593446811

LOW

Total Equity 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 15725000 16098000 18055000 19069000 18112000 16533000 13857000 11853000 9968000 7654000 6434000 5873000 3644000 1972000 1437000

Growth

Operating Income 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -8.6762422360248448E-2 -0.19532412327311366 -0.17802430005282621 0.14395886889460163 -7.9494382022471943E-2 8.6359475129691887E-2 0.16544943820224711 0.15497710291636535 3.7353923205342143E-2 0.17602092134379399 0.12658227848101267 -0.38991800789553599 0.5714285714285714 0.52787456445993031

Growth

Shares Outstanding 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -4.3620859298130532E-2 8.2304526748970819E-3 -7.4829931972789643E-3 -7.1967100753941082E-2 -8.3456425406203794E-2 -0.10556003223207089 -7.2072072072072113E-2 -6.7961165048543659E-2 -5.208333333333337E-2 -4.8351648351648402E-2 -4.1570438799076181E-2 -3.4939759036144546E-2 -4.7440699126092389E-2 -4.1939711664482293E-2

Growth

Net Income 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -9.5330112721417115E-2 -0.21858312566749738 -0.18769931662870154 0.12731351654514866 -8.5074626865671688E-2 6.5252854812398065E-2 0.16692189892802456 0.18022747156605434 -5.633802816901412E-2 0.21484681853888454 0.11445198836081483 -0.32869161589788221 0.85004321521175452 0.36299929922915197

Growth

EPS Net Diluted 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -6.5326633165829096E-2 -0.19892473118279574 -0.18791946308724838 0.17355371900826433 7.0422535211267512E-3 0.18181818181818188 0.26627218934911245 0.26635514018691575 7.3800738007379074E-3 0.27106227106227121 0.17867435158501421 -0.30562347188264061 0.93309859154929597 0.41165755919854274

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Growth

Cash dividends per share 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.61111111111111116 0.15517241379310365 5.9701492537313383E-2 0.18309859154929575 0.26190476190476208 0.16981132075471694 0.12903225806451601 0.24285714285714288 0.22988505747126453 0.2429906542056075 0.18796992481203012 0.17088607594936711 0.15135135135135114 7.9812206572769995E-2

Growth

Number of full time employees 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.9108280254777066E-2 2.4999999999999911E-2 1.2195121951219523E-2 -3.0120481927710885E-2 0 -6.2111801242236142E-3 4.3749999999999956E-2 4.7904191616766401E-2 2.857142857142847E-2 5.555555555555558E-2 5.2631578947368363E-2 -5.0000000000000044E-2 5.2631578947368363E-2 0.10000000000000009

Profitability analysis

Gross Profit %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 34.517000000000003 34.643999999999998 34.213000000000001 34.863999999999997 35.137 34.555999999999997 34.296999999999997 34.588000000000001 34.786000000000001 34.820999999999998 34.551000000000002 34.113999999999997 32.125 31.8 33.006 Operating Income %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 10.978999999999999 9.7449999999999992 7.85 6.59 7.2930000000000001 6.5270000000000001 7.0469999999999997 7.7670000000000003 8.5229999999999997 8.4149999999999991 8.9909999999999997 9.5980000000000008 5.6349999999999998 8.7509999999999994 10.766999999999999 Net Income %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 6.617 5.8179999999999996 4.5510000000000002 3.7759999999999998 4.1180000000000003 3.6629999999999998 3.8780000000000001 4.28 4.7990000000000004 4.3099999999999996 4.7569999999999997 5.0229999999999997 3.2450000000000001 5.9340000000000002 6.5119999999999996

LOW

Gross Profit %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 34.517000000000003 34.643999999999998 34.213000000000001 34.863999999999997 35.137 34.555999999999997 34.296999999999997 34.588000000000001 34.786000000000001 34.820999999999998 34.551000000000002 34.113999999999997 32.125 31.8 33.006

LOW

Operating Income %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 10.978999999999999 9.7449999999999992 7.85 6.59 7.2930000000000001 6.5270000000000001 7.0469999999999997 7.7670000000000003 8.5229999999999997 8.4149999999999991 8.9909999999999997 9.5980000000000008 5.6349999999999998 8.7509999999999994 10.766999999999999

LOW

Net Income %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 6.617 5.8179999999999996 4.5510000000000002 3.7759999999999998 4.1180000000000003 3.6629999999999998 3.8780000000000001 4.28 4.7990000000000004 4.3099999999999996 4.7569999999999997 5.0229999999999997 3.2450000000000001 5.9340000000000002 6.5119999999999996

LOW

Total Revenue 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 46927000 48283000 48230000 47220000 48815000 50208000 50521000 53417000 56223000 59074000 65017000 68619000 71309000 72148000 89597000

Growth

Cash Flow from Operations 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -3.4429142603287444E-2 -5.1759834368530044E-2 -1.6496846191169312E-2 -4.9827331031080391E-2 0.12902388369678097 -0.13497355713957226 9.2769803296119058E-2 0.19897835076623682 -2.9417731791438473E-2 0.17412207357859533 -9.8273099519316398E-2 0.22270483711747291 -0.30631357984821572 1.571927374301676

LOW

Cash Flow from Operations 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 4502000 4347000 4122000 4054000 3852000 4349000 3762000 4111000 4929000 4784000 5617000 5065000 6193000 4296000 11049000

LOW

Operating Income 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 5152000 4705000 3786000 3112000 3560000 3277000 3560000 4149000 4792000 4971000 5846000 6586000 4018000 6314000 9647000

LOW

Net Income 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 3105000 2809000 2195000 1783000 2010000 1839000 1959000 2286000 2698000 2546000 3093000 3447000 2314000 4281000 5835000

LOW

Shares Outstanding 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1524500 1458000 1470000 1459000 1354000 1241000 1110000 1030000 960000 910000 866000 830000 801000 763000 731000

LOW

EPS Net Diluted 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.99 1.86 1.49 1.21 1.42 1.43 1.69 2.14 2.71 2.73 3.47 4.09 2.84 5.49 7.75

LOW

Cash dividends per share 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.18 0.28999999999999998 0.33500000000000002 0.35499999999999998 0.42 0.53 0.62 0.7 0.87 1.07 1.33 1.58 1.85 2.13 2.2999999999999998

LOW

Number of full time employees 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 157000 160000 164000 166000 161000 161000 160000 167000 175000 180000 190000 200000 190000 200000 220000 Number of full time employees 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 157000 160000 164000 166000 161000 161000 160000 167000 175000 180000 190000 200000 190000 200000 220000

Cost of debt

Cost of debt, historical costs 1/29/21 12/1/16 12/1/15 12/1/14 12/1/13
Total long-term debt 21780000 17365000 15501000 15858000 15189000
Cash paid for interest, net of amount capitalized 824000 671000 635000 654000 619000
Implied interest rate 3.8% 3.9% 4.1% 4.1% 4.1%
https://www.moodys.com/credit-ratings/McDonalds-Corporation-credit-rating-479500
https://www.standardandpoors.com/en_US/web/guest/ratings/entity/-/org-details/sectorCode/CORP/entityId/101460
10 year bonds
3.611
3.569
Average 3.59
3.59%
http://finra-markets.morningstar.com/BondCenter/Results.jsp

https://www.moodys.com/credit-ratings/McDonalds-Corporation-credit-rating-479500 https://www.standardandpoors.com/en_US/web/guest/ratings/entity/-/org-details/sectorCode/CORP/entityId/101460 http://finra-markets.morningstar.com/BondCenter/Results.jsp

Cost of equity

DCF approach
Growth of dividends
Recent growth Last year Last 2 years Last 3 years Last 5 years Last 7 years Last 10 years
Cash dividends per share 8.0% 11.5% 13.3% 11.6% 18.5% 18.5%
Historical payout ratio
1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16
Net Income 5835000 4281000 2314000 3447000 3093000 2546000
Payment of Dividends -1704000 -1618000 -1455000 -1288000 -1121000 -957000
Payout ratio 29.2% 37.8% 62.9% 37.4% 36.2% 37.6%
ROE 406.1% 217.1% 63.5% 58.7% 48.1% 33.3% https://finance.yahoo.com/quote/MCD?p=MCD
Sustainable growth 287.5% 135.0% 23.6% 36.8% 30.6% 20.8%
Last 5 years average 102.7%
https://finance.yahoo.com/quote/MCD/analysis?p=MCD
Three estimates of g
Analysts earnings estimate 6.55%
My estimate based on historical growth 4.20%
Sustainable growth 103%
Average 37.82%
http://finra-markets.morningstar.com/BondCenter/Default.jsp
Dividend yield 2.57%
Rs 40.39%
CAPM approach
Average beta estimate 0.509
Market Risk Premium 5.50% Given by instructor based on market expectations
Risk free rate 2.59%
Rs 5.39%
Rd plus risk premium approach
Rd 3.59%
Risk Premium 4% Given by instructor based on historical averages
Rs 7.59%

Growth

Cash dividends per share 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.61111111111111116 0.15517241379310365 5.9701492537313383E-2 0.18309859154929575 0.26190476190476208 0.16981132075471694 0.12903225806451601 0.24285714285714288 0.22988505747126453 0.2429906542056075 0.18796992481203012 0.17088607594936711 0.15135135135135114 7.9812206572769995E-2

http://finra-markets.morningstar.com/BondCenter/Default.jsp https://finance.yahoo.com/quote/MCD?p=MCD https://finance.yahoo.com/quote/MCD/analysis?p=MCD

CAPM & beta

Date Open High Low Close Adj Close Volume ^GSPC MCD Date Open High Low Close Adj Close Volume
2/1/14 1782.680054 1867.920044 1737.920044 1859.449951 1859.449951 69725590000 Ret S&P Ret MCD 2/1/14 94.540001 97 92.220001 95.150002 80.79071 94318500
3/1/14 1857.680054 1883.969971 1834.439941 1872.339966 1872.339966 71885030000 0.0069321656 0.039044811 3/1/14 94.239998 99.07 94 98.029999 83.945168 119892900
4/1/14 1873.959961 1897.280029 1814.359985 1883.949951 1883.949951 71595810000 0.006200789 0.0341731998 4/1/14 98.099998 101.779999 96.519997 101.379997 86.813843 114839100
5/1/14 1884.390015 1924.030029 1859.790039 1923.569946 1923.569946 63623630000 0.02103028 0.0004931932 5/1/14 100.68 103.779999 100.330002 101.43 86.856659 86521200
6/1/14 1923.869995 1968.170044 1915.97998 1960.22998 1960.22998 63283380000 0.0190583317 0.0012031317 6/1/14 101.389999 102.620003 99.410004 100.739998 86.961159 87062600
7/1/14 1962.290039 1991.390015 1930.670044 1930.670044 1930.670044 66524690000 -0.0150798306 -0.0613461465 7/1/14 100.43 101.360001 94.559998 94.559998 81.626427 116896600
8/1/14 1929.800049 2005.040039 1904.780029 2003.369995 2003.369995 58131140000 0.0376552955 -0.008883128 8/1/14 94.300003 95.370003 92.919998 93.720001 80.901329 103875700
9/1/14 2004.069946 2019.26001 1964.040039 1972.290039 1972.290039 66706000000 -0.0155138372 0.0292179378 9/1/14 93.239998 97.300003 90.529999 94.809998 83.265099 145563800
10/1/14 1971.439941 2018.189941 1820.660034 2018.050049 2018.050049 93714040000 0.0232014608 -0.0113912553 10/1/14 94.370003 95.290001 89.339996 93.730003 82.316605 136770100
11/1/14 2018.209961 2075.76001 2001.01001 2067.560059 2067.560059 63600190000 0.0245335888 0.0328603931 11/1/14 93.779999 97.5 93.019997 96.809998 85.021561 89659200
12/1/14 2065.780029 2093.550049 1972.560059 2058.899902 2058.899902 80743820000 -0.0041885879 -0.0235684099 12/1/14 96.150002 97.5 87.620003 93.699997 83.017738 171258800
1/1/15 2058.899902 2072.360107 1988.119995 1994.98999 1994.98999 77330040000 -0.0310408058 -0.0134471021 1/1/15 94.129997 95 88.769997 92.440002 81.90139 152615800
2/1/15 1996.670044 2119.590088 1980.900024 2104.5 2104.5 68775560000 0.054892511 0.0698831363 2/1/15 92.050003 99.879997 91.43 98.900002 87.624916 140041500
3/1/15 2105.22998 2117.52002 2039.689941 2067.889893 2067.889893 76675850000 -0.0173961069 -0.006200257 3/1/15 98.900002 101.089996 94.940002 97.440002 87.081619 164467400
4/1/15 2067.629883 2125.919922 2048.379883 2085.51001 2085.51001 72060940000 0.0085208197 -0.0091340746 4/1/15 96.809998 99.349998 94.459999 96.550003 86.286209 135637400
5/1/15 2087.379883 2134.719971 2067.929932 2107.389893 2107.389893 65187730000 0.0104913824 -0.0064212927 5/1/15 96.730003 101.080002 95.57 95.93 85.73214 130921500
6/1/15 2108.639893 2129.870117 2056.320068 2063.110107 2063.110107 73213980000 -0.0210116724 -0.0003524116 6/1/15 95.839996 97.959999 94.019997 95.07 85.701927 111275100
7/1/15 2067 2132.820068 2044.02002 2103.840088 2103.840088 77920590000 0.0197420297 0.0503837679 7/1/15 95.099998 101.099998 94.730003 99.860001 90.019913 124132500
8/1/15 2104.48999 2112.659912 1867.01001 1972.180054 1972.180054 84626790000 -0.0625808182 -0.0253356055 8/1/15 100 101.879997 87.5 97.330002 87.739204 162751200
9/1/15 1970.089966 2020.859985 1871.910034 1920.030029 1920.030029 79989370000 -0.0264428316 0.0212481527 9/1/15 92.769997 98.970001 92.599998 98.529999 89.6035 121931500
10/1/15 1919.650024 2094.320068 1893.699951 2079.360107 2079.360107 85844900000 0.0829831178 0.1392469379 10/1/15 98.5 113.959999 97.129997 112.25 102.080513 170555800
11/1/15 2080.76001 2116.47998 2019.390015 2080.409912 2080.409912 75943590000 0.0005048693 0.0170154513 11/1/15 112.459999 114.989998 109.599998 114.160004 103.817459 129604000
12/1/15 2082.929932 2104.27002 1993.26001 2043.939941 2043.939941 83649260000 -0.0175301852 0.0429774244 12/1/15 114.519997 120.230003 112.910004 118.139999 108.279266 115015200
1/1/16 2038.199951 2038.199951 1812.290039 1940.23999 1940.23999 92409770000 -0.050735322 0.0477399154 1/1/16 117.25 124.349998 113 123.779999 113.448509 163650900
2/1/16 1936.939941 1962.959961 1810.099976 1932.22998 1932.22998 93049560000 -0.0041283604 -0.0532394833 2/1/16 123.080002 124.830002 112.709999 117.190002 107.408569 163196400
3/1/16 1937.089966 2072.209961 1937.089966 2059.73999 2059.73999 92639420000 0.0659911146 0.0805709179 3/1/16 117.910004 126.959999 115.32 125.68 116.062576 138065700
4/1/16 2056.620117 2111.050049 2033.800049 2065.300049 2065.300049 81124990000 0.0026993985 0.0064448078 4/1/16 125.190002 129.800003 124.870003 126.489998 116.810577 111309100
5/1/16 2067.169922 2103.47998 2025.910034 2096.949951 2096.949951 78883600000 0.0153246024 -0.0350223422 5/1/16 126.650002 131.960007 121.620003 122.059998 112.719597 116509800
6/1/16 2093.939941 2120.550049 1991.680054 2098.860107 2098.860107 86852700000 0.0009109211 -0.0140914893 6/1/16 122.059998 124.080002 116.080002 120.339996 111.13121 123220100
7/1/16 2099.340088 2177.090088 2074.02002 2173.600098 2173.600098 69530250000 0.0356098011 -0.0151671074 7/1/16 119.720001 128.600006 117.43 117.650002 109.445671 109848700
8/1/16 2173.149902 2193.810059 2147.580078 2170.949951 2170.949951 75610310000 -0.0012192431 -0.0169145018 8/1/16 117.879997 120.019997 113.959999 115.660004 107.594452 100277300
9/1/16 2171.330078 2187.870117 2119.120117 2168.27002 2168.27002 77270240000 -0.0012344508 0.0051575522 9/1/16 115.510002 119.239998 114.129997 115.360001 108.149376 91481000
10/1/16 2164.330078 2169.600098 2114.719971 2126.149902 2126.149902 73196630000 -0.0194256793 -0.0241852898 10/1/16 115.010002 115.739998 110.330002 112.57 105.533752 100828900
11/1/16 2128.679932 2214.100098 2083.790039 2198.810059 2198.810059 88299760000 0.0341745222 0.0595185131 11/1/16 112.650002 121.870003 110.830002 119.269997 111.814964 89005600
12/1/16 2200.169922 2277.530029 2187.439941 2238.830078 2238.830078 75251240000 0.0182007622 0.0284777894 12/1/16 118.959999 124 117.709999 121.720001 114.999207 78403000
1/1/17 2251.570068 2300.98999 2245.129883 2278.870117 2278.870117 70483180000 0.0178843582 0.0069833264 1/1/17 121.860001 123.339996 118.18 122.57 115.802284 76857800
2/1/17 2285.590088 2371.540039 2271.649902 2363.639893 2363.639893 69162420000 0.0371981603 0.0414457024 2/1/17 121.900002 128.899994 121.699997 127.650002 120.601791 64269600
3/1/17 2380.129883 2400.97998 2322.25 2362.719971 2362.719971 81547770000 -0.0003891972 0.0228278119 3/1/17 128.020004 130.190002 127.339996 129.610001 123.354866 89808900
4/1/17 2362.340088 2398.159912 2328.949951 2384.199951 2384.199951 65265670000 0.0090912085 0.0796235553 4/1/17 129.5 142.789993 128.649994 139.929993 133.176819 77967600
5/1/17 2388.5 2418.709961 2352.719971 2411.800049 2411.800049 79607170000 0.0115762514 0.0783247796 5/1/17 139.860001 151.149994 139.839996 150.889999 143.607864 74914100
6/1/17 2415.649902 2453.820068 2405.699951 2423.409912 2423.409912 81002490000 0.0048137751 0.0150439603 6/1/17 150.789993 155.460007 148.039993 153.160004 145.768295 70363800
7/1/17 2431.389893 2484.040039 2407.699951 2470.300049 2470.300049 63169400000 0.0193488261 0.0192776763 7/1/17 153.440002 159.979996 151.770004 155.139999 148.578369 69344000
8/1/17 2477.100098 2490.870117 2417.350098 2471.649902 2471.649902 70616030000 0.0005464328 0.0311329774 8/1/17 154.979996 160 153.229996 159.970001 153.204056 66879200
9/1/17 2474.419922 2519.439941 2446.550049 2519.360107 2519.360107 66337980000 0.0193029785 -0.0147555167 9/1/17 159.869995 161.720001 153.270004 156.679993 150.943451 81721200
10/1/17 2521.199951 2582.97998 2520.399902 2575.26001 2575.26001 70871570000 0.0221881353 0.0652925578 10/1/17 156 167.899994 155.800003 166.910004 160.798935 70654900
11/1/17 2583.209961 2657.73999 2557.449951 2584.840088 2584.840088 95142800000 0.003720043 0.0303157543 11/1/17 165.720001 173.169998 163.520004 171.970001 165.673676 58785800
12/1/17 2645.100098 2694.969971 2605.52002 2673.610107 2673.610107 65251190000 0.0343425574 0.0068388052 12/1/17 172.770004 175.779999 170.389999 172.119995 166.806686 57152900
1/1/18 2683.72998 2872.870117 2682.360107 2823.810059 2823.810059 76860120000 0.0561787044 -0.0056936387 1/1/18 173.729996 178.699997 170.270004 171.139999 165.856949 79265200
2/1/18 2816.449951 2835.959961 2532.689941 2713.830078 2713.830078 79579410000 -0.0389473721 -0.0782984619 2/1/18 170.270004 173.539993 153.860001 157.740005 152.870605 107472200
3/1/18 2715.219971 2801.899902 2585.889893 2640.870117 2640.870117 76369800000 -0.0268844986 -0.0023500398 3/1/18 157.800003 163.229996 146.839996 156.380005 152.511353 110129700
4/1/18 2633.449951 2717.48999 2553.800049 2648.050049 2648.050049 69648590000 0.0027187751 0.0707251741 4/1/18 158.270004 167.949997 155.009995 167.440002 163.297745 89381500
5/1/18 2642.959961 2742.23999 2594.620117 2705.27002 2705.27002 75617280000 0.021608342 -0.0443741645 5/1/18 166.380005 167.300003 159.080002 160.009995 156.051544 71231100
6/1/18 2718.699951 2791.469971 2691.98999 2718.370117 2718.370117 77439710000 0.004842436 -0.0207486188 6/1/18 159.899994 171.559998 155.100006 156.690002 152.81369 92744700
7/1/18 2704.949951 2848.030029 2698.949951 2816.290039 2816.290039 64542170000 0.0360215562 0.0118112258 7/1/18 155.990005 160.979996 154.710007 157.539993 154.618607 70294400
8/1/18 2821.169922 2916.5 2796.340088 2901.52002 2901.52002 69238220000 0.0302632115 0.029770395 8/1/18 156.570007 163.339996 153.130005 162.229996 159.221664 68751600
9/1/18 2896.959961 2940.909912 2864.120117 2913.97998 2913.97998 62492080000 0.0042942871 0.0376276372 9/1/18 161.809998 167.830002 156.559998 167.289993 165.212799 70751500
10/1/18 2926.290039 2939.860107 2603.540039 2711.73999 2711.73999 91327930000 -0.069403356 0.057445168 10/1/18 168.369995 178.960007 161.820007 176.899994 174.703476 105084900
11/1/18 2717.580078 2815.149902 2631.090088 2760.169922 2760.169922 80080110000 0.0178593568 0.0656302683 11/1/18 176.669998 190.880005 174 188.509995 186.169312 77562900
12/1/18 2790.5 2800.179932 2346.580078 2506.850098 2506.850098 83519570000 -0.0917768946 -0.0522248909 12/1/18 188.100006 188.419998 169.039993 177.570007 176.44664 75802000
1/1/19 2476.959961 2708.949951 2443.959961 2704.100098 2704.100098 80391630000 0.0786844017 0.0068141394 1/1/19 175.410004 189.419998 174.169998 178.779999 177.648972 80003700
2/1/19 2702.320068 2813.48999 2681.830078 2784.48999 2784.48999 70183430000 0.0297288891 0.0283029164 2/1/19 179.550003 184.710007 173.410004 183.839996 182.676956 76828400
Monthly Average 0.7% 1.4%
Monthly SD 3.2% 4.0%
S&P 500 MCD
Yearly average return 8.7% 17.4%
Yearly Standard Deviation 11.2% 13.9%
Beta 1 0.509
CORREL 0.383
SLOPE 0.475
Long formula for beta
0.475
Average beta estimate
https://finance.yahoo.com/quote/mcd/?p=mcd
Using 5 years of data 0.475
Yahoo (3 years) 0.39
MSN Money 0.52
Reuters 0.65
Average beta 0.509
https://www.reuters.com/finance/stocks/financial-highlights/MCD.N
https://www.msn.com/en-us/money/stockdetails/nys-mcd/fi-a1xdec?symbol=MCD&form=PRFIHQ

Ret MCD

6.9321656079357474E-3 6.2007889650528281E-3 2.1030280012996005E-2 1.9058331658920569E-2 -1.5079830581919862E-2 3.7655295489735119E-2 -1.5513837223063764E-2 2.3201460786772321E-2 2.4533588760364822E-2 -4.1885878779204244E-3 -3.1040805790470194E-2 5.4892511014553946E-2 -1.739610691375626E-2 8.5208197301247512E-3 1.0491382393316817E-2 -2.1011672375900514E-2 1.9742029696721453E-2 -6.2580818167202845E-2 -2.6442831573227132E-2 8.2983117760394132E-2 5.0486926072412786E-4 -1.7530185176314439E-2 -5.073532197294639E-2 -4.1283604302990717E-3 6.5991114577365062E-2 2.6993984808731941E-3 1.5324602357572603E-2 9.1092112097812539E-4 3.5609801125254359E-2 -1.2192431360480427E-3 -1.2344508443253854E-3 -1.9425679279557517E-2 3.4174522187570444E-2 1.8200762196895148E-2 1.7884358171464498E-2 3.7198160337279074E-2 -3.8919718808450021E-4 9.0912085493182193E-3 1.157625139134133E-2 4.8137750908554544E-3 1.9348826118030571E-2 5.4643281108557318E-4 1.9302978533243698E-2 2.218813533034969E-2 3.7200430103365711E-3 3.4342557364422932E-2 5.6178704444133087E-2 -3.8947372061896912E-2 -2.6884498624825115E-2 2.718775131643536E-3 2.1608341965291933E-2 4.8424360241865472E-3 3.6021556221367268E-2 3.0263211466054596E-2 4.2942871026614426E-3 -6.9403356024429486E-2 1.7859356788848979E-2 -9.1776894596563907E-2 7.8684401655036762E-2 2.9728889126352298E-2 3.9044810968983823E-2 3.4173199820149325E-2 4.9319323417096328E-4 1.2031317023142307E-3 -6.1346146502026189E-2 -8.8831280095109655E-3 2.921793781657156E-2 -1.1391255296531955E-2 3.2860393112665642E-2 -2.3568409900166509E-2 -1.3447102112081E-2 6.9883136293535264E-2 -6.2002570136557855E-3 -9.1340745513700528E-3 -6.4212926540786475E-3 -3.5241159266530264E-4 5.0383767916910571E-2 -2.5335605467648015E-2 2.124815265021085E-2 0.13924693789863118 1.7015451323211916E-2 4.2977424442646184E-2 4.7739915414646283E-2 -5.3239483297219947E-2 8.0570917949758902E-2 6.4448078422796318E-3 -3.5022342197659095E-2 -1.4091489344128849E-2 -1.5167107421938386E-2 -1.6914501807933524E-2 5.1575521756457299E-3 -2.4185289797696075E-2 5.9518513091432634E-2 2.8477789430759959E-2 6.983326415459512E-3 4.1445702400826567E-2 2.2827811902063733E-2 7.9623555344788599E-2 7.8324779630004615E-2 1.5043960266688305E-2 1.9277676260122334E-2 3.1132977371692627E-2 -1.4755516655512002E-2 6.529255780696297E-2 3.0315754267899786E-2 6.838805218518873E-3 -5.6936386830442887E-3 -7.829846188717704E-2 -2.3500397607505441E-3 7.0725174144904424E-2 -4.4374164505455838E-2 -2.0748618802515661E-2 1.1811225813603388E-2 2.9770394969345526E-2 3.7627637153697879E-2 5.7445168034469418E-2 6.563026828384344E-2 -5.2224890856340411E-2 6.8141393908094372E-3 2.8302916382764165E-2

https://www.reuters.com/finance/stocks/financial-highlights/MCD.N https://finance.yahoo.com/quote/mcd/?p=mcd https://www.msn.com/en-us/money/stockdetails/nys-mcd/fi-a1xdec?symbol=MCD&form=PRFIHQ

WACC

Tax rate 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12
Taxation 1904000 1342000 1080000 2042000 2108000 1873000 1578000 1387000 1178000 1067000
Earnings Before Tax 7739000 5623000 3394000 5489000 5201000 4419000 4276000 3673000 3137000 2906000
Implied rate 24.6% 23.9% 31.8% 37.2% 40.5% 42.4% 36.9% 37.8% 37.6% 36.7%
Average tax rate last 5 years 31.6%
Capital structure
Based on book value of firm
1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12
Total long-term debt 21780000 17365000 15501000 15858000 15189000 12606000 11367000 10135000 9077000 7627000
Total Equity 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000
Value of firm (V) 23217000 19337000 19145000 21731000 21623000 20260000 21335000 21988000 22934000 24160000
D/V 0.9381056984 0.8980193412 81.0% 73.0% 70.2% 62.2% 53.3% 46.1% 39.6% 31.6%
E/V 0.0618943016 0.1019806588 19.0% 27.0% 29.8% 37.8% 46.7% 53.9% 60.4% 68.4%
Average for last 5 years
D/V 81.6%
E/V 18.4%
Weighted Average Cost of Capital
Capital structure
Based on market value of firm Tc 31.6%
Rd 3.59%
Calculating historical market equity 1) DCF Rs 40.39%
1/29/21 1/31/20 2/1/19 2/2/18 2) CAPM 5.39%
Total long-term debt 21780000 17365000 15501000 15858000 3) Rd + RP 7.59%
Shares Outstanding 731000 763000 801000 830000 Avg Rs 17.79%
Stock price end of year 172.12 121.72 118.14 93.70
Market capitalization (E ) 125819716 92872361 94630139 77770998 Calculating capital structure with book values
Value of the firm (V) 147599716 110237361 110131139 93628998
D/V 81.6%
D/V 14.8% 15.8% 14.1% 16.9% E/V 18.4%
E/V 85.2% 84.2% 85.9% 83.1%
Average for last 4 years Estimate of WACC 5.28%
D/V 15.4%
E/V 84.6% Calculating capital structure with market values
Market capitalization at the close of the most recent fiscal year D/V 18.6%
Based on market value of firm Dec-18 E/V 81.4%
Debt at the close of the fiscal year 31075300
Stock price at close of fiscal year 177.57 Estimate of WACC 14.93%
Shares outstanding, most recent 765320
Market capitalization (E ) 135897877.75724
Value of the firm (V) 166973177.75724
https://finance.yahoo.com/quote/MCD/key-statistics?p=MCD
D/V 18.6%
E/V 81.4%
https://finance.yahoo.com/quote/MCD/balance-sheet?p=MCD
E

https://finance.yahoo.com/quote/MCD/key-statistics?p=MCD https://finance.yahoo.com/quote/MCD/balance-sheet?p=MCD

Cap Bud

Capital Budgeting template Must be adjusted to fit the instructions of MP3
Your companyhas developed a powerful new server that would be used for corporations’ Internet activities. It would cost $10 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 10% of the year's projected sales; for example, NWC0 = 10%(Sales1). The servers would sell for $24,000 per unit, and analysts believes that variable costs would amount to $17,500 per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 3%. The company’s nonvariable costs would be $1 million at Year 1 and would increase with inflation.
The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project's returns are expected to be highly correlated with returns on the firm's other assets. The firm believes it could sell 1,000 units per year.
The equipment would be depreciated over a 5-year period, using MACRS rates. The estimated market value of the equipment at the end of the project’s 4-year life is $500,000. Company’s federal-plus-state tax rate is 40%. Its cost of capital is 10% for average-risk projects, defined as projects with a coefficient of variation of NPV between 0.8 and 1.2. Low-risk projects are evaluated with a WACC of 8%, and high-risk projects at 13%.
a. Develop a spreadsheet model, and use it to find the project’s NPV, IRR, and payback.
Key Output: NPV = $5,141,686
Part 1. Input Data IRR = 21.1%
MIRR = 15.5%
Equipment cost $10,000,000
Net WC/Sales 10% Market value of equipment at Year 4 $500,000
First year sales (in units) 1,000 Tax rate 40%
Sales price per unit $24,000 WACC 5.91%
Variable cost per unit $17,500 Inflation 3.0%
Nonvariable costs $1,000,000
Part 2. Depreciation and Amortization Schedule Years Accum'd
Year Initial Cost 1 2 3 4 Depr'n
Equipment Depr'n Rate 20.0% 32.0% 19.0% 12.0%
Equipment Depr'n, Dollars $2,000,000 $3,200,000 $1,900,000 $1,200,000 $8,300,000
Ending Bk Val: Cost – Accum Dep'rn 10,000,000 $1,700,000
Part 3. Net Salvage Values, in Year 4 Equipment
Estimated Market Value in Year 4 $500,000
Book Value in Year 4 1,700,000
Expected Gain or Loss -1,200,000
Taxes paid or tax credit -480,000
Net cash flow from salvage $980,000
Part 4. Projected Net Cash Flows (Time line of Annual Cash Flows)
Years 0 1 2 3 4
Investment Outlays at Time Zero:
Equipment ($10,000,000)
Operating Cash Flows over the Project's Life:
Units sold 1,000 1,000 1,000 1,000
Sales price $24,000.00 $24,720.00 $25,461.60 $26,225.45
Variable costs $17,500.00 $18,025.00 $18,565.75 $19,122.72
Sales revenue $24,000,000 $24,720,000 $25,461,600 $26,225,448
Variable costs 17,500,000 18,025,000 18,565,750 19,122,723
Nonvariable operating costs 1,000,000 1,030,000 1,060,900 1,092,727
Depreciation (equipment) 2,000,000 3,200,000 1,900,000 1,200,000
Oper. income before taxes (EBIT) $3,500,000 $2,465,000 $3,934,950 $4,809,999
Taxes on operating income (40%) 1,400,000 986,000 1,573,980 1,923,999
After-tax operating income $2,100,000 $1,479,000 $2,360,970 $2,885,999
Add back depreciation 2,000,000 3,200,000 1,900,000 1,200,000
Operating cash flow $4,100,000 $4,679,000 $4,260,970 $4,085,999
Terminal Year Cash Flows:
Required level of net working capital $2,400,000 $2,472,000 $2,546,160 $2,622,545 $0
Required investment in NWC ($2,400,000) ($72,000) ($74,160) ($76,385) $2,622,545
Terminal Year Cash Flows:
Net salvage value 980,000
Net Cash Flow (Time line of cash flows) ($12,400,000) $4,028,000 $4,604,840 $4,184,585 $7,688,544
Part 5. Key Output: Appraisal of the Proposed Project
Net Present Value (at 10%) $5,141,686
IRR 21.09%
MIRR 15.50%
PI formula must be entered
Payback (See calculation below) 2.90 3
Data for Payback Years 0 1 2 3 4
Net cash flow (12,400,000) 4,028,000 4,604,840 4,184,585 7,688,544
Cumulative CF (12,400,000) (8,372,000) (3,767,160) 417,425 8,105,969
Part of year required for payback 1.00 1.00 0.90 0.00
b. Now conduct a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, variable costs per unit, and number of units sold wacc and nonvariable costs. Set these variables’ values at 5% and 10% above and below their base-case values. Include a graph in your analysis.
Part 6. Evaluating Risk: Sensitivity Analysis
I. Sensitivity of NPV to Changes in Inputs. Here we use Excel "Data Tables" to find NPVs at different unit sales, WACC, variable costs, sales price and nonvariable costs–changing one variable at a time, holding other things constant.
% Deviation 1st YEAR UNIT SALES % Deviation WACC
from Units NPV from NPV
Base Case Sold $5,141,686 Base Case WACC $5,141,686
-10% 900 3,779,741 -10% 5.3%
-5% 950 4,460,714 -5% 5.6%
0% 1,000 5,141,686 0% 5.9%
5% 1,050 5,822,658 5% 6.2%
10% 1,100 6,503,630 10% 6.5%
% Deviation VARIABLE COST % Deviation SALES PRICE
from Variable NPV from Sales NPV
Base Case Costs $5,141,686 Base Case Price $5,141,686
-20% $14,000 -10% $21,600
-10% $15,750 -5% $22,800
0% $17,500 0% $24,000
10% $19,250 5% $25,200
20% $21,000 10% $26,400
Note about data tables. The data in the column input should NOT be input using a cell reference to the column input cell. For example, the base case number of units sold in Cell B102 should be the number 1000; you should NOT have the formula =D26 in that cell. This is because you'll use D26 as the column input cell in the data table and if Excel tries to iteratively replace Cell D26 with the formula =D26 rather than a series of numbers, Excel will calculate the wrong answer. Unfortunately, Excel won't tell you that there is a problem, so you'll just get the wrong values for the data table!
% Deviation NONVARIABLE COST
from Fixed NPV
Base Case Costs $5,141,686
-10% $900,000
-5% 950,000
0% 1,000,000
5% 1,050,000
10% 1,100,000
Deviation NPV at Different Deviations from Base
from Sales Variable Nonvariable
Base Case Price Cost/Unit Units Sold Cost WACC
-10% $0 $0 $3,779,741 $0 $0
-5% 0 0 4,460,714 0 0
0% 0 0 5,141,686 0 0
5% 0 0 5,822,658 0 0
10% 0 0 6,503,630 0 0
Range $0 $0 $2,723,889 $0 $0
c. Now conduct a scenario analysis.
-10% -5% 5% 10%
Worst Bad Base Good Best
First year sales (in units) 900 950 1,000 1,050 1,100
Sales price per unit $ 21,600 $ 22,800 $ 24,000 $ 25,200 $ 26,400
Variable cost per unit $ 19,250 $ 18,375 $ 17,500 $ 16,625 $ 15,750
Nonvariable costs $ 1,100,000 $ 1,050,000 $ 1,000,000 $ 950,000 $ 900,000
WACC 6.50% 6.21% 5.91% 5.61% 5.32%

Sensitivity Analysis

Sales price -0.1 -0.05 0 0.05 0.1 0 0 0 0 0 VC -0.1 -0.05 0 0.05 0.1 0 0 0 0 0 Units -0.1 -0.05 0 0.05 0.1 3779741.3881332502 4460713.5326771103 5141685.6772209741 5822657.8217648305 6503629.9663086943 Non-var. cost -0.1 -0.05 0 0.05 0.1 0 0 0 0 0 WACC -0.1 -0.05 0 0.05 0.1 0 0 0 0 0

Percentage Deviation from Base

NPV ($)

Scenario Summary MP3

Scenario Summary
Base Best Worst Good Bad
Modified by Garza-Gomez, Xavier Modified by Garza-Gomez, Xavier Modified by Garza-Gomez, Xavier Created by Garza-Gomez, Xavier Created by Garza-Gomez, Xavier
Changing Cells:
First year sales (in units) $D$26 1,000 1,100 900 1,050 950
Sales price per unit $D$27 $24,000 $26,400 $21,600 $25,200 $22,800
Variable cost per unit $D$28 $17,500 $15,750 $19,250 $16,630 $18,380
Nonvariable costs $D$29 $1,000,000 $900,000 $1,100,000 $950,000 $1,050,000
WACC $I$27 5.91% 5.32% 6.50% 5.61% 6.21%
Result Cells:
Net Present Value (at 10%) $D$76 $5,141,686 $17,025,521 ($4,630,931) $10,805,635 ($14,903)
IRR $D$77 21.09% 49.73% -9.62% 35.49% 6.16%
MIRR $D$78 15.50% 29.97% -5.79% 23.24% 6.18%
PI formula must be entered $D$79
Payback $D$80 2.90 1.72 4.00 2.16 3.63
Probability 0.40 0.10 0.10 0.20 0.20
Expected NPV $ 5,454,279 StDev NPV $ 5,942,170
Expected IRR 20.8% StDev IRR 16.2%
Expected MIRR 14.5% StDev MIRR 9.7%
Expected PI – 0 StDev PI – 0
Expected payback 2.89 StDev payback 0.69
97,714,858,145.74 133,893,621,847,176.00 101,711,475,897,417.00 28,637,001,922,229.00 29,911,960,846,625.50
0.00 0.08 0.09 0.02 0.02
0.00 0.02 0.04 0.01 0.01
Squared deviations 0.00 0.00 0.00 0.00 0.00
formulas hidden 0.00 1.36 1.23 0.53 0.54
Students must write the conclusion about the project and comment about its risk

CVM Scenarios

Please highlight excluded cells and/or included cells in your analysis
Operating ratios
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Average Max Min
Garza-Gomez, Xavier: Formulas must be adjusted to fit the years selected 		Range 1/4 of range
Op costs/ sales (excl depreciation) ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Depr / NPPE ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Cash/sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Receivables / sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Inventories / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Net PPE / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Acc payable / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Accruals / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Growth Analysis 3yr growth 5yr growth 7yr growtn 10yr growth 14 yr growth
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Geometric growth ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! Analyst must pick one of these numbers as expected growth in the near term
Total revenues growth ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! Arithmetic growth ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Current value Average value Minor improvement Mild recession Major improvement Continued deterioration Minor improvement Mild recession Major improvement Continued deterioration
Using most recent values as starting point Using AVERAGE VALUES as starting point
Op costs/ sales (excl depreciation) ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Depr / NPPE ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Cash/sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Receivables / sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Inventories / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Net PPE / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Acc payable / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Accruals / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Student must decide which subset of scenarios makes more sense (the ones that use average values of the ones that use the most recent value)
Base selected (1 for current value, 2 for average) 1 Manually adjusted by analyst
Current value Average value Minor improvement Mild recession Major improvement Continued deterioration
Using most recent values as starting point
Op costs/ sales (excl depreciation) ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Depr / NPPE ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Cash/sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Receivables / sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Inventories / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Net PPE / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Acc payable / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Accruals / Sales ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Sales growth
Year 1 (short term growth) ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! Current values or historical average
Year 2 (short term growth) ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! Automatic formula: simple average of year 1 and year 3
Year 3 (long term growth) 3.5% 3.5% 4.00% 3.00% 4.5% 2.5% Manually adjusted by analyst
Year 4 (long term growth) 3.5% 3.5% 4.00% 3.00% 4.5% 2.5% Automatic formula: same as year 3
WACC 5% 7%
Most optimistic
best 4% 4.50%
good 3.50%
base 3% 3.50%

Growth

Total Revenue 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 2.8895944765273684E-2 -1.097694840834218E-3 -2.0941322828115227E-2 3.377806014400675E-2 2.8536310560278499E-2 6.234066284257489E-3 5.7322697492131924E-2 5.2530093415953827E-2 5.0708784661081863E-2 0.10060263398449409 5.5400895150499174E-2 3.9201970299771238E-2 1.176569577472697E-2 0.24185008593446811

CV model

Chapter 12
Inputs from Income Statement for the Year Ending December 31 (Thousands of Dollars)
Jan-21
Net Sales $ 89,597,000 Estimated stock price
Number of shares (in millions) 731,000 ERROR:#VALUE!
Inputs from Balance Sheets for December 31 (Thousands of Dollars)
Marketable Securities ERROR:#VALUE! Notes payable –
Long-term bonds 13,044,000
Preferred stock –
Projected ratios and selected information for the current and projected years are shown below.
Main inputs for the model Actual Projected Projected Projected Projected
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Stay the same Average value Minor improvement Mild recession Major improvement Continued deterioration
Sales Growth Rate 0.2% 1.9% 3.5% 3.5%
Costs / Sales 49% 49% 49% 49% 49% Costs / Sales $B$19 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Depreciation / Net PPE 7% 7% 7% 7% 7% Depreciation / Net PPE $B$20 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Cash / Sales 4% 4.3% 4.3% 4.3% 4.3% Cash / Sales $B$21 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Acct. Rec. / Sales 11% 11% 11% 11% 11% Acct. Rec. / Sales $B$22 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Inventories / Sales 0% 0% 0% 0% 0% Inventories / Sales $B$23 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Net PPE / Sales 115% 115% 115% 115% 115% Net PPE / Sales $B$24 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Acct. Pay. / Sales 5% 5% 5% 5% 5% Acct. Pay. / Sales $B$25 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Accruals / Sales 3% 2.8% 2.8% 2.8% 2.8% Accruals / Sales $B$26 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Tax rate 32% 32% 32% 32% 32%
Weighted average cost of capital (WACC) 14.93% 14.9% 14.9% 14.9% 14.9% Growth year1 $C$18 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
Growth year 2 $D$18 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!
a. Forecast the parts of the income statement and balance sheets necessary to calculate free cash flow. Long term growth $E$18 0.0350 0.0350 0.0400 0.0300 0.0450 0.0250
Partial Income Statement for the Year Ending December 31 (Thousands of Dollars)
Actual Projected Projected Projected Projected
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Net Sales $ 89,597,000.0 $ 89,812,032.8 $ 91,491,517.8 $ 94,693,720.9 $ 98,008,001.2
Costs (except depreciation) $ 44,162,361.3 $ 44,268,351.0 $ 45,096,169.1 $ 46,674,535.0 $ 48,308,143.8
Depreciation $ 6,881,237.8 $ 6,897,752.7 $ 7,026,740.7 $ 7,272,676.6 $ 7,527,220.3
Total operating costs $ 51,043,599.1 $ 51,166,103.7 $ 52,122,909.8 $ 53,947,211.7 $ 55,835,364.1
Earning before int. & tax $ 38,553,400.9 $ 38,645,929.1 $ 39,368,608.0 $ 40,746,509.3 $ 42,172,637.1
Partial Balance Sheets for December 31 (Thousands of Dollars)
Actual Projected Projected Projected Projected
Operating Assets Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Cash $ 3,816,832.2 $ 3,825,992.6 $ 3,897,538.7 $ 4,033,952.5 $ 4,175,140.8
Accounts receivable $ 9,452,483.5 $ 9,475,169.5 $ 9,652,355.1 $ 9,990,187.6 $ 10,339,844.1
Inventories $ 215,032.8 $ 215,548.9 $ 219,579.6 $ 227,264.9 $ 235,219.2
Net plant and equipment $ 102,705,041.1 $ 102,951,533.2 $ 104,876,726.9 $ 108,547,412.3 $ 112,346,571.7
Operating Liabilities
Accounts Payable $ 4,202,099.3 $ 4,212,184.3 $ 4,290,952.2 $ 4,441,135.5 $ 4,596,575.3
Accruals $ 2,490,796.6 $ 2,496,774.5 $ 2,543,464.2 $ 2,632,485.4 $ 2,724,622.4
b. Calculate free cash flow for each projected year. Also calculate the growth rates of free cash flow each year to ensure that there is constant growth (i.e., the same as the constant growth rate in sales) by the end of the forecast period.
Actual Projected Projected Projected Projected
Calculation of FCF Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Operating current assets 13,484,348.5 13,516,710.9 13,769,473.4 14,251,405.0 14,750,204.2
Operating current liabilities 6,692,895.9 6,708,958.9 6,834,416.4 7,073,621.0 7,321,197.7
Net operating working capital 6,791,452.6 6,807,752.1 6,935,057.1 7,177,784.0 7,429,006.5
Net PPE 102,705,041.1 102,951,533.2 104,876,726.9 108,547,412.3 112,346,571.7
Net operating capital 109,496,493.7 109,759,285.3 111,811,783.9 115,725,196.4 119,775,578.2
NOPAT 26,368,820.0 26,432,105.1 26,926,385.5 27,868,809.0 28,844,217.3
Investment in operating capital na 262,791.6 2,052,498.6 3,913,412.4 4,050,381.9
Free cash flow na 26,169,313.5 24,873,886.8 23,955,396.5 24,793,835.4
Growth in FCF na na -5.0% -3.7% 3.5%
Growth in sales 0.2% 1.9% 3.5% 3.5%
c. Calculate operating profitability (OP=NOPAT/Sales), capital requirements (CR=Operating capital/Sales), and return on invested capital (ROIC=NOPAT/Operating capital at beginning of year). Based on the spread between ROIC and WACC, do you think that the company will have a positive market value added (MVA= Market value of company – book value of company = Value of operations – Operating capital)?
Actual Projected Projected Projected Projected
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Operating profitability (OP=NOPAT/Sales) 29.4% 29.4% 29.4% 29.4% 29.4%
Capital requirement (CR=Operating capital/Sales) 122.2% 122.2% 122.2% 122.2% 122.2%
Return on invested capital (ROIC=NOPAT/Operating capital at start of year) na 24.1% 24.5% 24.9% 24.9%
Weighted average cost of capital (WACC) na 14.9% 14.9% 14.9% 14.9%
Spread between ROIC and WACC na 9.2% 9.6% 10.0% 10.0%
Yes, because the spread is positive, the company should have a positive MVA.
d. Calculate the value of operations and MVA. (Hint: first calculate the horizon value at the end of the forecast period, which is equal to the value of operations at the end of the forecast period.
Actual Projected Projected Projected Projected
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Free cash flow 26,169,313.5 24,873,886.8 23,955,396.5 24,793,835.4
Long-term constant growth in FCF 3.5%
Weighted average cost of capital (WACC) 14.9% 14.9% 14.9% 14.9% 14.9%
Horizon value 224,418,202.7
FCF in Years 1-3 and FCF4 + horizon value in Year 4 26,169,313.5 24,873,886.8 23,955,396.5 249,212,038.1
Value of operations (PV of FCF + HV) 200,188,084
Operating capital 109,496,494
Market value added (MVA=Market value of company – book value of company = Value of operations – Operating capital) 90,691,591
e. Calculate the price per share of common equity
Actual
Jan-21
Value of Operations 200,188,084
Plus Value of Mkt. Sec. ERROR:#VALUE!
Total Value of Company ERROR:#VALUE!
Less Value of Debt 13,044,000
Less Value of Pref. -0
Value of Common Equity ERROR:#VALUE!
Divided by number of shares 731,000
Price per share ERROR:#VALUE!
% Deviation from Sales growth (LT) Stock price % Deviation from WACC Stock price
Base Case ERROR:#VALUE! Base Case ERROR:#VALUE!
-10% 3.2% ERROR:#VALUE! -10% 6.6% ERROR:#VALUE!
-5% 3.3% ERROR:#VALUE! -5% 6.9% ERROR:#VALUE!
0% 3.5% ERROR:#VALUE! 0% 7.3% ERROR:#VALUE!
5% 3.7% ERROR:#VALUE! 5% 7.7% ERROR:#VALUE!
10% 3.9% ERROR:#VALUE! 10% 8.0% ERROR:#VALUE!
% Deviation from Cost/Sales Stock price % Deviation from Net PPE/Sales Stock price
Base Case $145.93 Base Case $145.93
-10% 44.4% 170.98 -10% 103.2% $152.53
-5% 46.8% 158.45 -5% 108.9% $149.23
0% 49.3% 145.93 0% 114.6% $145.93
5% 51.8% 133.40 5% 120.4% $142.63
10% 54.2% 120.88 10% 126.1% $139.33
% Deviation from Dep/Net PPE
Base Case $145.93
-10% 6.0% $149.83
-5% 6.4% $147.88
0% 6.7% $145.93
5% 7.0% $143.98
10% 7.4% $142.02
Stock price at Different Deviations from Base
Deviation from Base Case Net PPE/Sales Cost/Sales Sales growth (LT) Dep/Net PPE WACC
-10% $152.53 $170.98 ERROR:#VALUE! $149.83 ERROR:#VALUE!
-5% $149.23 $158.45 ERROR:#VALUE! $147.88 ERROR:#VALUE!
0% $145.93 $145.93 ERROR:#VALUE! $145.93 ERROR:#VALUE!
5% $142.63 $133.40 ERROR:#VALUE! $143.98 ERROR:#VALUE!
10% $139.33 $120.88 ERROR:#VALUE! $142.02 ERROR:#VALUE!
Range $13 $50 ERROR:#VALUE! $8 ERROR:#VALUE!

Sensitivity Analysis

Net PPE/Sales -0.1 -0.05 0 0.05 0.1 152.52643767873272 149.22708231523475 145.92772695173679 142.62837158823885 139.32901622474196 Cost/Sales -0.1 -0.05 0 0.05 0.1 170.97722475362562 158.45247585268018 145.92772695173679 133.40297805079331 120.87822914984707 Sales growth (LT) -0.1 -0.05 0 0.05 0.1 0 0 0 0 0 Dep/Net PPE -0.1 -0.05 0 0.05 0.1 149.83085950424231 147.87929322799005 145.92772695173679 143.97616067548361 142.02459439922933 WACC -0.1 -0.05 0 0.05 0.1 0 0 0 0 0

Percentage Deviation from Base

Share price

Scenario Summary MP4

Scenario Summary
Current Values: Continuation Averages Minor improvement Mild deterioration Major improvement Continued deterioration
Created by Garza-Gomez, Xavier Modified by Garza-Gomez, Xavier on 4/22/2019 Modified by Garza-Gomez, Xavier on 4/12/2021 Created by Garza-Gomez, Xavier Modified by Garza-Gomez, Xavier on 4/22/2019 Modified by Garza-Gomez, Xavier on 4/12/2021 Created by Garza-Gomez, Xavier Modified by Garza-Gomez, Xavier on 4/22/2019 Modified by Garza-Gomez, Xavier on 4/12/2021 Created by Garza-Gomez, Xavier Modified by Garza-Gomez, Xavier on 4/22/2019 Modified by Garza-Gomez, Xavier on 4/12/2021 Created by Garza-Gomez, Xavier Modified by Garza-Gomez, Xavier on 4/22/2019 Modified by Garza-Gomez, Xavier on 4/12/2021 Created by Garza-Gomez, Xavier Modified by Garza-Gomez, Xavier on 4/22/2019 Modified by Garza-Gomez, Xavier on 4/12/2021
Changing Cells:
Costs / Sales $B$19 0.4929 0.4929 0.5082 0.4929 0.5001 0.4920 0.5073
Depreciation / Net PPE $B$20 0.0670 0.0670 0.0624 0.0633 0.0707 0.0595 0.0713
Cash / Sales $B$21 0.0426 0.0426 0.1034 0.0412 0.1079 0.0412 0.1732
Acct. Rec. / Sales $B$22 0.1055 0.1055 0.1028 0.0981 0.1129 0.0908 0.1161
Inventories / Sales $B$23 0.0024 0.0024 0.0043 0.0024 0.0036 0.0024 0.0048
Net PPE / Sales $B$24 1.1463 1.1463 1.0721 1.1056 1.1463 1.0650 1.1463
Acct. Pay. / Sales $B$25 0.0469 0.0469 0.0483 0.0511 0.0427 0.0553 0.0405
Accruals / Sales $B$26 0.0278 0.0278 0.0212 0.0278 0.0252 0.0278 0.0226
Growth year1 $C$18 0.0024 0.0024 0.0037 0.0124 -0.0076 0.0224 -0.0176
Growth year 2 $D$18 0.0187 0.0187 0.0194 0.0262 0.0112 0.0337 0.0037
Long term growth $E$18 0.0350 0.0350 0.0350 0.0400 0.0300 0.0450 0.0250
Result Cells:
Value of operations $B$94 141,753,663 141,753,663 140,092,136 165,491,052 121,993,037 198,523,908 107,913,246
Price per share $B$111 145.93 145.93 143.70 177.73 119.45 222.00 100.58
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created.
Total
Assigned probabilities 50% 0%
Garza-Gomez, Xavier: Must match the scenario chosen in previoust sheets 		20% 20% 5% 5% 100%
Garza-Gomez, Xavier: Probability must total 100%
Sq Deviation 7 23 853 846 5397 2299
Expected price
148.53
Standard deviation
27
One-standard deviation range
From to
121.55 175.51
HOLD if current price is in range
BUY if current price is below
SELL if current price is above Current price is 183.65
Based on standard deviation
recommendation would be SELL
Expected price
148.53
Allowed variation
10%
Lower limit Upper limit
133.68 163.38
HOLD if current price is in range
BUY if current price is below
SELL if current price is above Current price is 183.65
Based on allowed variation
recommendation would be SELL
Sensitivity analysis Student must clearly say if he/she would buy/hold or sell the stock based on all the calculations
Please include your observations about the range of prices and state how confident you are in your analysis
Recommendation
Allowed variation SELL
5% SELL
10% SELL
15% SELL
20% SELL
25% HOLD
30% HOLD

,

Financial Analysis Report On: Lowe’s 

Icon Description automatically generated with medium confidence

FINC 6352- Financial Management

Dr. Xavier Garza Gomez

By: Rebecca Adams and Alexis Giusti

DATE

(1) Company Profile

Source: http://careers.lowes.com/media/39421/loweshistory.pdf  

Lowe's Companies, Inc., founded in 1946, originated in North Carolina as a classic small-town hardware store selling everything from overalls to wash tubs, work boots and even horse collars. Sales grew over time, and Lowe’s stores opened in neighboring towns throughout western North Carolina. By eliminating wholesalers and dealing directly with manufacturers, Lowe’s established a lasting reputation for low prices. The company primarily sells home improvement, hardware and appliance items, focusing on do-it-yourself homeowners seeking to improve the value of their properties. Lowe’s stores stock 40,000 products and have hundreds of thousands more available by Special Order — offering everything customers need to build, maintain, amplify and enjoy their homes.

Sector: Consumer Services

Industry: RETAIL: Building Materials

Ticker: LOW

Market Cap 156,545,159,364

Revenue (ttm) 95.22 B 

Net Income Avi to Common (ttm) 8.18B

Full Time Employees 300,000 

Lowe’s competitors in the construction equipment manufacturing industry

Company

Ticker

Based on

Market Cap

Revenue

Net income

The Home Depot, Inc. 

HD

US

379.90B

36.82 B

4.13 B

Walmart Inc.

WMT

US

388.90 B

559.2 B

13.7 B

(2) Show financial ratios for company and main competitors

Students will prepare tables and charts using financial ratios from D&B Hoovers and Mergent Online (accessible from http://vcuhvlibrary.uhv.edu/) and report the categories below for the company under study and at least two of its competitors.

· Market Value Ratios (D&B)

· Profitability Ratios (Mergent)

· Asset Management (Mergent)

· Debt Management (Mergent)

· Liquidity Ratios (Mergent) Students don’t need to calculate the ratios, just take them from the D&B or Mergent and merge with the numbers from the competitors. For each of the categories of ratios, students will identify if the firm is average, below average or above average relative to competitors. The leader in each category must be identified. Report areas in which the company is leading and where it is lagging. Trends observed for the most recent 15 years must be commented in the report.

(3) Trend analysis

Students will obtain 15 years of financial data from Mergent Online for the company under study. They must obtain a balance sheet, income statement and statement of cash flows and they must download two reports: the standardized statements and the “As reported”. They will plot charts for Sales, income, EPS, Assets, Shareholders equity and shares outstanding and other relevant variables. Students will then try to identify key trends in performance and/or important financial ratios that can be linked to the business strategy.

4. DuPont Analysis

Students will calculate components of DuPont identity and plot them for recent years. Students should describe the performance of each component and identify possible changes in business strategy.

5. Growth Analysis

Students will calculate growth rate for relevant variables that were plotted before (Sales, income, EPS, Assets, Shareholders equity and shares outstanding, etc.) and determine how mature the company is and how efficient the company is when pursuing growth.

6. Growth Projection

Students will plot year-by year growth rates and conclude about possible future growth for key variables (sales, earnings, dividends)

,

SAMPLE REPORT FOR MP1

Financial Analysis Report On: company name & logo

Submitted to: Class, professor

By: student name

On: date

FINC 6352 – Financial Management Sample MP1

1. Company Profile Source: https://finance.yahoo.com/

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries. halt pavers, backhoe loaders, compactors, cold planers, compact truck and multi-terrain loaders, forestry excavators, feller bunchers, harvesters, knuckleboom loaders, motorgraders, pipelayers, road reclaimers, site prep tractors, skidders, skid steer loaders, telehandlers, track-type loaders, wheel excavators, and track-type tractors.

The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. The company was founded in 1925 and is headquartered in Deerfield, Illinois.

Sector: Industrials Industry: Farm & Construction Equipment

Ticker: CAT

Market Cap 75.888B

Revenue (ttm) 53.8 B

Net Income Avi to Common (ttm) 6.1 B

Full Time Employees 104,000

Caterpillar’s competitors in the construction equipment manufacturing industry

Company Ticker Based on Market Cap Revenue Net income

Deere & Co. DE US 91.877B 35.259B 2.75B

Volvo AB VOLVF Sweden 29.22B 431 B 35.8 B

FINC 6352 – Financial Management Sample MP1

2. Financial ratios for the company and main competitors: Source: D&B Hoovers and Mergent Online ratios

Market Value Ratios MCD JACK WEN Industry P/E Ratio 32.76 24.17 47.65 57.14 Price/Revenue 8.47 2.11 2.98 3.97 Price/Book – – 9.42 0 Price to Cash Flow per Share 26.16 15.05 19.52 31.25 Price to Free Cash Flow per Share 37.91 17.41 28.07 56.18

P/Sales, P/CF and P/FCF clearly suggest that among these three companies, investors like MCD the most. P/E ratio suggests WEN is better regarded by investors, but it is likely due to lower level of profits. Comparing against the industry, it appears that MCD valuation could go further up, as P/E, P/CF and P/FCF ratios are lower for MCD than for the industry.

Profitability Ratios JACK MCD WEN Average ROA % (Net) 6.28 15.00 2.96 8.08 ROE % (Net) AvgEqty<0 AvgEqty<0 23.58 23.58 ROI % (Operating) 38.89 34.61 7.80 27.10 EBITDA Margin % 18.51 49.24 21.57 29.77 Calculated Tax Rate % 26.80 25.34 20.14 24.09 Revenue per Employee 196983 102812 128849 142881

Among the competitors and the industry, MCD is the most profitable company in relation to its total asset and investment and also when measured by EBITDA margin. Due to the negative equity ROE comparisons can’t be made. JACK appears to generate higher revenue per employee

Asset Management JACK MCD WEN Average Total Asset Turnover 0.72 0.52 0.37 0.54 Receivables Turnover 16.81 9.03 15.08 13.64 Inventory Turnover 372.23 153.22 190.41 238.62 Accounts Payable Turnover 30.05 19.19 77.12 42.12 Accrued Expenses Turnover 8.21 37.11 24.77 23.36 Property Plant & Equip Turnover 2.81 0.90 1.56 1.76 Cash & Equivalents Turnover 6.30 23.89 4.68 11.62

MCD has the lowest turnover ratios for receivables, inventory, payables and PPE. It has the highest cash and accrued expenses turnover and it is between its competitors for total assets.

Debt Management JACK MCD WEN Average LT Debt to Equity Equity<0 Equity<0 5.3 5.30 Total Debt to Equity Equity<0 Equity<0 5.37 5.37 Interest Coverage 3.26 7.83 2.25 4.45

FINC 6352 – Financial Management Sample MP1

Both MCD and JACK are using a lot of leverage. For both of this companies, book value of equity is negative. Despite the high levels of debt of MCD, the coverage ratio indicates that MCD is better prepared to service their debt when compared to JACK and WEN.

Liquidity Ratios JACK MCD WEN Average Quick Ratio 0.79 0.86 1.17 0.94 Current Ratio 0.99 0.98 1.58 1.18 Net Current Assets % TA -0.25 -0.13 4.09 1.24

MCD has lower quick ratio and current ratio than the industry. WEN has the highest quick and current ratios among the 3 competitors and carries more working capital than competitors

Some interesting trends observed in the ratios

Revenue per employee changed drastically after they started reducing the # of employees

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Asset Management Ratios

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FINC 6352 – Financial Management Sample MP1

Drop in TATO and PPE turnover is bad for MCD. More assets are being used to produce the same level of revenue. When we see that inventory and other current asset turnover measures go up, it indicates that the problem is with the fixed assets.

Most measures of profitability have been going up for MCD with the exception of last year where ROA fell.

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Profitability ratios

ROA % (Net) ROI % (Operating) EBITDA Margin %

FINC 6352 – Financial Management Sample MP1

3. Trend Analysis Source: Mergent Online

The declining number of employees shows a clear strategy of the firm, to reduce the number of owned restaurants and increase the number of franchises.

This company achieved their highest level of sales in 2013. After that, revenue has dropped four years in a row. Net Income also peaked in 2013. However, with the steady decline in the number of shares outstanding they managed to produce increasing EPS and Dividend per share.

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Growth MCD

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Year end shares…

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Net income (loss) per share-… 0

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Dividends declared per…

FINC 6352 – Financial Management Sample MP1

4. DuPont Analysis Source: http://www.mergentonline.com.

MCD is doing pretty well, showing increases in the three ratios over time. A big jump is

observed in 2017 for Operating profit margin.

Profit margin shows a healthy increase in the last 6 years. ROA has been quite stable and shows an increase in 3 of the last 4 years but has a drastic drop in 2019. TATO shows a drop in the last 4 years. The Equity multiplier had a drastic increase after 2013 when the company decided to issue debt and reduce equity. The company continued doing the repurchase and by 2017, they had negative equity, which impedes the calculation of ROE and EM.

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Profitability analysis

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Du Pont Analysis

Profit margin ROA ROE TATO EM

FINC 6352 – Financial Management Sample MP1

5. Growth analysis Source: http://www.mergentonline.com.

Recent growth Last year Last 2 years Last 3 years

Last 5 years

Last 7 years

Last 10 years

Total assets 44.8% 18.6% 15.3% 4.6% 4.3% 4.6% Total shareholders' equity (deficit) Total revenues 0.2% -3.9% -5.1% -3.7% -3.8% -0.8% Operating income 5.0% -1.6% 5.9% 4.2% 0.8% 3.0% Net income 1.7% 7.7% 8.7% 5.9% 1.4% 2.8% Year-end shares outstanding -2.7% -3.1% -3.1% -3.8% -4.1% -3.6% Net income (loss) per share-diluted 4.5% 11.2% 13.1% 10.4% 5.7% 6.7% Dividends declared per common share 12.9% 11.1% 9.4% 6.6% 7.4% 8.7% Number of employees -2.4% -6.6% -18.2% -13.4% -10.3% -6.1% Net cash flows from operating activities 16.6% 21.0% 10.3% 4.4% 2.2% 3.5%

Growth in total revenue has always been lower than growth in total assets, which suggests some inefficiencies in the overall strategy of the company.

Though the growth rates of operating income are always higher than growth in revenue, which suggests operations are running efficiently, the actual net cash flow from operations is lower than revenue growth, indicating some problems in operations.

Growth in Net income is not stable, with some horizons showing negative growth. However, with stable decrease in number of shares outstanding in the last 10 years both net income per share and dividend per share have increased.

FINC 6352 – Financial Management Sample MP1

6. Growth Projections (sales and dividends)

Recent growth Last year Last 2 years Last 3 years

Last 5 years

Last 7 years

Last 10 years

Total revenues 0.2% -3.9% -5.1% -3.7% -3.8% -0.8% Net income 1.7% 7.7% 8.7% 5.9% 1.4% 2.8% Net income (loss) per share-diluted 4.5% 11.2% 13.1% 10.4% 5.7% 6.7% Dividends declared per common share 12.9% 11.1% 9.4% 6.6% 7.4% 8.7%

In the near future, my expectations for this company are tepid.

Given the strategy they are following to get rid of their own restaurants, the growth in revenue will probably remain negative in the near term, my estimate is -4%, which is the average for the last 2 years. For long-term growth in sales, I would expect this company to benefit from worldwide growth. I would estimate 2.5%

Regarding DPS, the company has maintained a growth rate of about 6.6% in the last 5 years. I would expect the same rate in the future.

Comment for a different firm (AMZN)

Recent growth Last year Last 2 years Last 3 years

Last 5 years

Last 7 years

Last 10 years

Total net sales 30.9% 30.9% 29.6% 21.2% 25.3% 28.4%

This company has kept an annual sales growth rate of about 30% for 10 years. It is hard to speculate how long they can sustain this level of growth. As the company is not paying dividends, we can’t use regular models to forecast long term growth.

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Growth Dividends declared per common share

  • 1. Company Profile
  • 2. Financial ratios for the company and main competitors:
    • Some interesting trends observed in the ratios
  • 3. Trend Analysis
  • 4. DuPont Analysis
  • 5. Growth analysis
  • 6. Growth Projections (sales and dividends)

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