Ratio analysis compute the ratios below for blue bill

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Reference no: EM13575443

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

Reference no: EM13575443

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