Analyze overall financial health of blue bill corporation

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Reference no: EM131175684

Ratio Analysis

Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventory was $1,237.6 for year 2010.

After calculating the various ratios, analyze the overall financial health of Blue Bill Corporation.

Values presented on the financial statements are in millions.

Blue Bill Corporation
Balance Sheet
December 31, 2011

Assets


Liabilities and Shareholders' Equity

Current Assets


Current liabilities

 

Cash and cash equivalents

 $ 483.2

Short-term debt

 $ 43.4

Receivables (net of allowance)

     1,045.1

Long-term debt due within a year

       151.6

Inventories

     1,249.4

Accounts payable

     1,007.7

Other current assets

       273.5

Other accrued liabilities

       972.7

Total current assets

     3,051.2

Total current liabilities

     2,175.4

Property, plan and equipment

 


 

Land

         77.1

Long-term liabilities

 

Buildings

       842.4

Long-term debt

     4,559.4

Equipment

     3,546.0

Deferred taxes

       665.3

Less accumulated depreciation

     2,373.7

Other long-term liabilities

       784.2

Total property, plant and equipment

     2,091.8

Total long-term liabilities

     6,008.9

Other noncurrent assets

     4,932.6

Shareholders' equity

     1,891.3

Total assets

 $10,075.6

Total liabilities and shareholders' equity

 $10,075.6

Blue Bill Corporation
Income Statement
2011

Sales

$10,495.0

Cost of products sold

6,700.5

Gross Profit

3,794.5

Selling and administrative expense

2,350.9

Operating income

1,443.6

Other income

(18.3)

Earnings before interest and taxes

1,425.3

Interest expense

295.2

Taxes

247.8

Net income

$ 882.3

Ratio analysis

Liquidity ratios:

Current ratio
Quick ratio

Activity ratios:

Inventory turnover
Receivables turnover
Days sales outstanding
Fixed asset turnover
Total asset turnover

Profitability ratios:

Gross profit margin
Operating profit margin
Net profit margin
Return on assets
Return on equity

Leverage ratios:

Debt / Net worth
Debt ratio

Coverage ratios:

Times-interest-earned

Analysis of Blue Bill Corporation's financial health.

Reference no: EM131175684

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