Ratio analysis from given income statement

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Reference no: EM1314530

Ratio analysis from given income statement.

Lucrative Corporation Consolidated Income Statement Year ended December 31 (in $ millions)
	2006	2005
Total sales	610.1	578.3
Cost of sales	(500.2)	(481.9)
Gross profit	109.9	96.4
Selling, general, and administrative expenses	(40.5)	(39.0)
Research and development	(24.6)	(22.8)
Depreciation and amortization	(3.6)	(3.3)
Operating income	41.2	31.3
Other income	---	---
Earnings before interest and taxes (EBIT)	41.2	31.3
Interest income (expense)	(25.1)	(15.8)
Pretax income	16.1	15.5
Taxes	(5.5)	(5.3)
Net income	10.6	10.2

Price per share	$16	$15
Shares outstanding (millions)	10.2	8.0
Stock options outstanding (millions)	0.3	0.2

Stockholders' Equity	126.6	63.6
Total Liabilities and Stockholders' Equity	533.1	386.7

Show calculations.

a) For the year ending December 31, 2006 what are Lucrative 's earnings per share?

b) Assuming that Lucrative has no convertible bonds outstanding. Then for the year ending December 31, 2006 what are Luther's diluted earnings per share?

c) What are Lucrative 's Operating Margin for the year ending December 31, 2005?

d) What are Lucrative's Net Profit Margin for the year ending December 31, 2005?

e) What are Lucrative 's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending December 31, 2006?

f) What are Lucrative's returns on equity (ROE) for the year ending December 31, 2006?

g) What is Lucrative's price - earnings ratio (P/E) for the year ending December 31, 2006?

h) If Locative's accounts receivable were $55.5 million in 2006, then calculate Luther's accounts receivable days for 2006.

Reference no: EM1314530

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