Using the financial statements and using these ratios from the picture, discuss the performance of Cobham PLC in 2016. Below you will find the financials of Cobham PLC for 2014-2016:Income statement £m201620152014Revenue1,943.9(1.567.3)376.61,851.7(1.408.2) (1.290.1)561.6(504.0)57.62,072.0Cost of salesGross profit663.8(1,155.7)(779.1)4.1SG&A(651.8)12.0Operating (loss) profitFinance income5.26.4(72.9)(847.9)52.8(795.1)Finance cost(57.0)(39.8)2.1(37.7)(39.7)24.3(Loss)/profit before taxationТаxation4.7(Loss)/profit after taxation29.0Balance sheet £m201620152014Non-current assetsPPE & IntangiblesInvestment propertiesInvestment in joint ventures and associatesTrade and other receivables1,588.82,109.44.33.02,430.83.610.43.63.166.071.351.1Deferred tax asset42.311.410.525.81,730.1Financial assets12.62,212.013.72,519.6Current assetsInventories405.3410.4429.5Trade and other receivables409.8366.0435.30.4236.41,101.6Current tax receivables3.18.6Financial assets (including cash)244.71,062.9320.61,105.6Current liabilitiesBorrowings and other financial liabilitiesTrade and other payables199.7398.1103.122.2430.8505.5Provisions180.674.360.5Current tax liabilities149.5864.0125.1797.2119.2707.4Non-current liabilitiesBorrowings and other financial liabilitiesTrade and other payables1,235.731.51,359.024.81,462.336.2Provisions57.327.687.068.266.5Deferred tax liabilities102.0134.5Retirement benefit obligations56.7102.01,801.51,439.11,610.7Equity489.9909.71112.3 2 Year201620153 ROE-1.623 -0.04144 B)5 Year6 Gross Profit Margin7 C)2016|19.4%201532.0%7201620150.608 Year9 Total Asset Turnover0.6410 D)20164.7720154.9311 Year12 Inventory Turnover13 E)14 Year2016201515 Current Ratio1.231.3916 F)20162.5217 Year201518 Debt to equity19 F)1.492016-10.6920150.2120 Year21 Interest Coverage ratio

From an income statement, the figures like revenue, gross margin, operating income, and net income…

Answered: Using the financial statements and…

Business

Accounting

Using the financial statements and using these ratios from the picture, discuss the performance of Cobham PLC in 2016.

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 15.17EX: Profitability ratios The following selected data were taken from the financial statements of...

See similar textbooks

Similar questions

Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Profitability ratios The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014: December31 2016 2015 2014 Total assets......................................... 4,800,000 4,400,000 4,000,000 Notes payable (8% interest)........................... 2,250,000 2,250,000 2,250,000 Common stock...................................... 250,000 250,000 250,000 Preferred 4% stock, 100 par (no change during year)........................... 500,000 500,000 500,000 Retained earnings................................... 1,574,000 1,222,000 750,000 The 2016 net income was 372,000, and the 2015 net income was 492,000. No dividends on common stock were declared between 2014 and 2016. a. Determine the rate earned on total assets, the rate earned on stockholders equity, and the rate earned on common Stockholders equity for the years 2015 and 2016. Round to one decimal place. b. What conclusions can be drawn from these data as to the companys profitability?
E9.23 (LO 6 ) (Analysis of Inventories) The financial statements of ConAgra Foods, Inc.'s 2017 annual report disclose the following information. (in millions) 2017 2016 2015 Year-end inventories $934.2 $1,044.1 $1,642.6 Fiscal Year 2017 2016 Net sales $7,826.9 $8,664.1 Cost of goods sold 5,484.8 6,234.9 Net income 648.0 (665.9) Instructions Compute ConAgra's (a) inventory turnover and (b) the average days to sell inventory for 2017 and 2016.
Information below is related to Jea Maggie Ison’s Company Return on Sale 15%Asset turnover 3 timesDebt ratio 40% What is its Return on Equity? a. 0.7515 b. 0.5985 c. 1.125 d. 3.0015
16. Quick assets P208,000 Acid test ratio 2.6 to 1 Current ratio 3.5 to 1 Net sales for the year P1,800,000 Cost of sales for the year P990,000 Average total assets P1,200,000 The company’s inventory balances at December 31 is? The company’s asset turnover ratio for the year is?
Q. Calculate the current assets and current liabilities from the data given below. Current ratio. 1.8 Quick ratio. 1.2 Inventory turnover ( on c.g.s). 12 Gross profit rate. 25% Credit period. 1month Working capital. 640000
E23.10B (L0 1,4) (Classification of Transactions) Following are selected balance sheet accounts of BioLazer Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Increase Selected balance sheet accounts 2020 2019 (Decrease)AssetsAccounts receivable $154,000 $120,000 $34,000Property, plant, and equipment 631,000 581,000 50,000Accumulated…
Solve for fy22 sales and depreciation a on the 2022 income statement. remember to reference the growth rate provided by Paul.of 0.141 FY21 FY22 Sales $24884886 Blank Cost of Goods Sold $19659044 Other Expenses $2735335 Depreciation $995395 Blank Taxable Income $1493092 Taxes (21%) $313549 Net Income $1179543 Dividends $500,000 Add. to Retained Earnings $679543
1-What will be the total operating expense? a.41200 b.53200 c. 19700 d. 21500 2-What will be the net income? a. 56000 b. 338000 c. 16000 d. 72000 3-What will be the total Selling and distribution expense? a. 41200 b. 17200 c. 19700 d. 14800 4-What will be the Gross Profit at the end of the year December 2019 a. OMR 338,000 b. OMR 16000 c. OMR 336,000 d. OMR 56000 5-What is the Gross Margin in terms of Percentage? a. Cannot be determined b. 20.66 c. 16.66 d. 16.56
44- Calculate net profit from the following? Net sales OMR 100000, Cost of goods sold OMR 40000, Rent received OMR 20000, Salaries OMR 10000, Insurance OMR 6000 and Depreciation OMR 8000. a. OMR 64000 b. OMR 70000 c. OMR 56000 d. OMR 60000
BCD Co Financial Statements Income Statement for the year ended 31 December 2020 RM (mil.) RM (mil.) Sales 100 Less cost of goods sold Opening inventory 15 Purchases 104 Goods available for sales 119 Closing inventory 46 (73) Gross profit 27 Less other expenses General expenses 8 Depreciation 8 Property taxes 4 Interest expenses 3 23 Net income 4 Retained earnings, Dec 31. 2015 7 Total 11 Dividend (1) Retained earnings, Dec 31, 2016 10 Balance Sheet as at December 31, 2016 RM (mil.) RM (mil.) RM (mil.) Category 2016 2015 +ve/-ve Assets Cash 1 20 Accounts receivable 20 5 Inventory 46 15 Prepaid general expenses 4 2 Fixed assets 91 50 163 92…
V4. The Ahram Company net income was 100,000 L.E. for the year ended on 31/12/2016. The examination of the income statement of this year revealed that the income statement included a deduction of the following a) The cost of computers that were purchased on 1/6/2016 for 15,000 b) Depreciation expense of 9,000 for furniture’s at a rate of 10% Required: Calculate Taxable net income and indicate the reasoning for your calculations for 2016. (Be careful, needs a bit of thought )