Guys could you please help me: I'm attaching AT&T's Balance Sheet and Income Statement for the analysis. I'd really appreciate help with the following: Perform a vertical financial analysis incorporating i. Debt ratio ii. Debt to equity ratio iii. Return on assets iv. Return on equity v. Current ratio vi. Quick ratio vii. Inventory turnover viii. Days in inventory ix. Accounts receivable turnover x. Accounts receivable cycle in days xi. Accounts payable turnover xii. Accounts payable cycle in days xiii. Earnings per share (EPS) xiv. Price to earnings ratio (P/E) xv. Cash conversion cycle (CCC), and xvi. Working capital xvii. Explain Dupont identity, apply it to your selected company, interpret thecomponents in Dupont identity.

Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 14EX
icon
Related questions
Question

Guys could you please help me: I'm attaching AT&T's Balance Sheet and Income Statement for the analysis.
I'd really appreciate help with the following:

Perform a vertical financial analysis incorporating
i. Debt ratio
ii. Debt to equity ratio
iii. Return on assets
iv. Return on equity
v. Current ratio
vi. Quick ratio
vii. Inventory turnover
viii. Days in inventory
ix. Accounts receivable turnover
x. Accounts receivable cycle in days
xi. Accounts payable turnover
xii. Accounts payable cycle in days
xiii. Earnings per share (EPS)
xiv. Price to earnings ratio (P/E)
xv. Cash conversion cycle (CCC), and
xvi. Working capital
xvii. Explain Dupont identity, apply it to your selected company, interpret thecomponents in Dupont identity.

Breakdown
TTM
12/31/2020
12/31/2019
12/31/2018
> Total Revenue
172920,000
171760,000
181193,000
170,756,000
Cost of Revenue
81819,000
79.920,000
84141,000
79.419,000
Gross Profit
91101,000
91840,000
97,052,000
91337,000
> Operating Expense
65,764,000
66.555,000
67,639,000
65 195,000
Operating income
25.337,000
25.285,000
29.413,000
26.142,000
> Net Non Operating Interest Inc.
-7,957,000
-7,777,000
-7,925,000
8,422,000
> Other Income Expense
-16617,000
20.216,000
-2,523,000
6,688,000
Pretax Income
943,000
-2,856,000
18.468,000
24.873,000
Tax Provision
1.785,000
965,000
3,493,000
4.920,000
> Net Income Common Stockhold.
-2,447,000
-5,369,000
13.900,000
19.370,000
Auerage Dilution Eamings
23,000
23,000
21,000
19,000
Dluted NI Available to Com Stock.
-2,424,000
-5,346,000
13.921,000
19.389,000
Basic EPS
0.75
190
285
Diuted EPS
0.75
1.89
2.85
Basic Average Shares
7,157,000
7,319,000
6,778,000
Dluted Average Shares
7,183,000
7,348,000
6,806,000
Total Operating Income as Reported
6.580,000
6.405,000
27,955,000
25.096,000
Total Expenses
147,583,000
145.475,000
151780,000
144.614,000
Net Income from Continuing a Dis.
-2,236,000
-5,176,000
13903,000
19.370,000
Normaliaed Income
9,018,200
8,606,400
15.085,438
19.406.892
Interest Expense
7,777,000
7,925,000
8,422,000
7.957,000
Net Interest Income
-7,777,000
-7,925,000
8,422,000
-7,957,000
EBIT
8,720,000
5,069,000
25.890,000
32830,000
EBITDA
45.043,000
Reconciled Cost of Revenue
72599,000
71317,000
74554,000
75.647,000
Reconcied Depreciation
36.323,000
37,119,000
37.804.000
32.202.000
Net Income from Continuing Oper.
-2,236,000
-5,176,000
13903,000
19.370,000
Total Unusual Items Excluding Goo.
-18.757,000
18.880,000
-1,458,000
-46.000
Total Unusual Items
-18.757,000
-18.880,000
-1,458,000
45,000
Normaliand EBITDA
63.800,000
61.068,000
66.152,000
65.078,000
Tax Rate for Calcs
Tax Etfect of Unusual Items
-7,502,800
-5,097,600
275,562
9,108
Transcribed Image Text:Breakdown TTM 12/31/2020 12/31/2019 12/31/2018 > Total Revenue 172920,000 171760,000 181193,000 170,756,000 Cost of Revenue 81819,000 79.920,000 84141,000 79.419,000 Gross Profit 91101,000 91840,000 97,052,000 91337,000 > Operating Expense 65,764,000 66.555,000 67,639,000 65 195,000 Operating income 25.337,000 25.285,000 29.413,000 26.142,000 > Net Non Operating Interest Inc. -7,957,000 -7,777,000 -7,925,000 8,422,000 > Other Income Expense -16617,000 20.216,000 -2,523,000 6,688,000 Pretax Income 943,000 -2,856,000 18.468,000 24.873,000 Tax Provision 1.785,000 965,000 3,493,000 4.920,000 > Net Income Common Stockhold. -2,447,000 -5,369,000 13.900,000 19.370,000 Auerage Dilution Eamings 23,000 23,000 21,000 19,000 Dluted NI Available to Com Stock. -2,424,000 -5,346,000 13.921,000 19.389,000 Basic EPS 0.75 190 285 Diuted EPS 0.75 1.89 2.85 Basic Average Shares 7,157,000 7,319,000 6,778,000 Dluted Average Shares 7,183,000 7,348,000 6,806,000 Total Operating Income as Reported 6.580,000 6.405,000 27,955,000 25.096,000 Total Expenses 147,583,000 145.475,000 151780,000 144.614,000 Net Income from Continuing a Dis. -2,236,000 -5,176,000 13903,000 19.370,000 Normaliaed Income 9,018,200 8,606,400 15.085,438 19.406.892 Interest Expense 7,777,000 7,925,000 8,422,000 7.957,000 Net Interest Income -7,777,000 -7,925,000 8,422,000 -7,957,000 EBIT 8,720,000 5,069,000 25.890,000 32830,000 EBITDA 45.043,000 Reconciled Cost of Revenue 72599,000 71317,000 74554,000 75.647,000 Reconcied Depreciation 36.323,000 37,119,000 37.804.000 32.202.000 Net Income from Continuing Oper. -2,236,000 -5,176,000 13903,000 19.370,000 Total Unusual Items Excluding Goo. -18.757,000 18.880,000 -1,458,000 -46.000 Total Unusual Items -18.757,000 -18.880,000 -1,458,000 45,000 Normaliand EBITDA 63.800,000 61.068,000 66.152,000 65.078,000 Tax Rate for Calcs Tax Etfect of Unusual Items -7,502,800 -5,097,600 275,562 9,108
Breakdown
12/31/2020
12/31/2019
12/31/2018
12/31/2017
> Total Assets
525,761,000
551,669,000
531,864,000
444,097,000
> Total Liabilities Net Minority Int.
346,521,000
349,735,000
337,980,000
302,090,000
> Total Equity Gross Minority Inte.
179,240,000
201,934,000
193,884,000
142,007,000
Total Capitalization
313,601,000
333,658,000
350,339,000
266,833,000
Common Stock Equity
161,673,000
184,221,000
184,089,000
140,861,000
Capital Lease Obligations
24,238,000
23,838,000
Net Tangible Assets
-119,902,000
-119,637,000
-126,108,000
-78,864,000
Working Capital
-11,430,000
-14,150,000
-12,993,000
-2,243,000
Invested Capital
316,882,000
345,334,000
360,594,000
305,207,000
Tangible Book Value
-119,902,000
-119,637,000
-126,108,000
-78,864,000
Total Debt
179,447,000
184,951,000
176,505,000
164,346,000
Net Debt
145,469,000
148,983,000
171,301,000
113,848,000
Share Issued
7,620,749
7,620,749
7,620,749
6,495,231
Ordinary Shares Number
7,125,922
7,254,555
7,281,629
6,139,425
Preferred Shares Number
118,000
48,000
Treasury Shares Number
494,827
366,193
339,120
355,807
Transcribed Image Text:Breakdown 12/31/2020 12/31/2019 12/31/2018 12/31/2017 > Total Assets 525,761,000 551,669,000 531,864,000 444,097,000 > Total Liabilities Net Minority Int. 346,521,000 349,735,000 337,980,000 302,090,000 > Total Equity Gross Minority Inte. 179,240,000 201,934,000 193,884,000 142,007,000 Total Capitalization 313,601,000 333,658,000 350,339,000 266,833,000 Common Stock Equity 161,673,000 184,221,000 184,089,000 140,861,000 Capital Lease Obligations 24,238,000 23,838,000 Net Tangible Assets -119,902,000 -119,637,000 -126,108,000 -78,864,000 Working Capital -11,430,000 -14,150,000 -12,993,000 -2,243,000 Invested Capital 316,882,000 345,334,000 360,594,000 305,207,000 Tangible Book Value -119,902,000 -119,637,000 -126,108,000 -78,864,000 Total Debt 179,447,000 184,951,000 176,505,000 164,346,000 Net Debt 145,469,000 148,983,000 171,301,000 113,848,000 Share Issued 7,620,749 7,620,749 7,620,749 6,495,231 Ordinary Shares Number 7,125,922 7,254,555 7,281,629 6,139,425 Preferred Shares Number 118,000 48,000 Treasury Shares Number 494,827 366,193 339,120 355,807
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning