Managing Business Financial Performance Case Study - Business Management Assignment Help

Assignment Task 

 

1. Earnings Before Interest and Taxes (EBIT) = Profit Before Tax + Interest Expenses 

Current Year 2019 = $1,036,507,000 + $1,747,499,000 = $ 2,784,006,000

Previous Year 2018 = $1,335,740,000 + $1,644,573,000 = $2,980,313,000

 

2. Horizontal Analysis = (Current Year – Previous Year) / Previous Year 

• ($18,047,528,000 - $15,890,147,000)/ $15,890,147,000 = 13.58%

• ($4,107,063,000 – $4,486,881,000)/ $4,486,881,000 = -8.47%

• ($1,497,585,000 – $1,538,709,000)/ $1,538,709,000 = -2.67%

• ($2,784,006,000 – $ 2,980,313,000) / $2,980,313,000 = -6.59%

• (($-1,747,499,000 – ($-1,644,573,000.00))/ $-1,644,573,000.00 = 6.26%

• (($-315,152,000 – ($-364,868,000.00))/ $-364,868,000.00 = -13.63%

• ($721,355,000.00 – $970,872,000)/ $ 970,872,000 = -25.70%

 

3. Time Interest Earned Ratio = EBIT/ Interest Expenses

Current Year 2019 = $2,784,006,000 / $-1,747,499,00) = 1.59%

Previous Year 2018 = $2,980,313,000 / $ -1,644,573,000.00 = 1.81%

 

4. Return on Investment (ROI) = (Net Profit/ Cost of Investment) x 100 

Current Year 2019 = $721,355,000/ $3,225,320,000 = 22.16%

Previous Year 2018 = $970,872,000/ $3,559,925,000 = 27.27%

 

5. Return on Equity (ROE) = Net Profit Tax / Ordinary Shareholder’s Equity 

Current Year 2019 = $721,355,000.00 / $3,340,111,000 = 21.60%

Previous Year 2018 = $970,872,000 / $3,340,111,000 = 29.07%

 

6. Price to Earning (P/E) = Market Price Per Ordinary Share / Earning Per Share (EPS)

Current Year 2019 = 1.12 / 2.30 = 0.49%

Previous Year 2018 = 1.13 / 3.24 = 0.35%

 

7. Current Ratio = Current Assets / Current Liabilities

Current Year 2019 = $,160,811,000.00 / $20,404,614,000 = 1.09%

Previous Year 2018 = $21,542,216,000 / $ 9,915,015,000 = 2.17%

 

8. Quick Ratio = ((Current Asset – (Inventory + Prepaid)) / Current Liabilities 

Current Year 2019 = ($22,160,811,000.00 – $ 2,783,723,000) / $20,404,614,000 = 0.95%

Previous Year 2018 = ($21,542,216,000 – $2,808,716,000) / $9,915,015,000 = 1.89%

 

9. Inventory Turnover Ratio = Cost of Goods Sold 

      Inventories/2 

• Current Year 2019 = (($13,940,465,000 / ($2,783,723,000/2)) = 10.02
• Previous Year 2018 = = (($11,403,266,00 / ($2,808,716,000/2)) = 8.12
• Average Age of Inventory = 365 DAYS / Inventories Turn Over
• Current Year 2019 = 365 days / 10.02 = 36.43 days 
• Previous Year 2018 = 365 days / 8.12 = 44.95 days 

 

10. Gross Profit Margin = (Gross Profit / Revenue (Sales)) x 100 

Current Year 2019 = ($4,107,063,000 / $18,047,528,000) x 100 = 22.76

Previous Year 2018 = ($4,486,881,000 / $15,890,147,000) x100 = 28.24

 

11. Operating Profit Margin = Earning Before Interest and Taxes / Sales 

Current Year 2019 = $2,784,006,000 / $ $18,047,528,000 = 15.43

Previous Year 2018 = $2,980,313,000 / $15,890,147,000 = 18.76

 

12. Net Profit Margin = Net Profit After Tax / Sales 

Current Year 2019 = ($721,355,000 /$ 18,047,528,000) = 4.00

Previous Year 2018 = ($970,872,000 /$ 15,890,147,000) = 6.11

 

13. Return on Total Asset (ROA) = Net Profit After Tax / Total Asset

Current Year 2019 = $721,355,000 /$ 76,727,093,000 = 0.94

Previous Year 2018 = $970,872,000 /$ 71,344,380,000 = 1.36  

 

14. Debts to Assets Ratio: Total Liabilities / Total Assets 

Current Year 2019 = $55,832,552,000 / $76,727,093,000 = 72.77

Previous Year 2018 = $49,783,943,000 / $71,344,380,000 = 69.78

 

15. Total Asset Turnover = Sales / Total Asset 

Current Year 2019 = $18,047,528,000 / $76,727,093,000 = 0.24

Previous Year 2018 = $15,890,147.000.00 / $71,344,380,000 = 0.22

 

16. Operating Cash Flow 

Current. Year 2019

Previous Year 2018 

 

17. Free Cash Flow 

Current Year 

 

 

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