2020 annual report for Cisco Ratios 2019 Workings 2020 Workings Formulae a Net profit margin 22.4% 11621/51904
Fantastic news! We've Found the answer you've been seeking!
Question:
2020 annual report for Cisco
Ratios | 2019 | Workings | 2020 | Workings | Formulae | |
a | Net profit margin | 22.4% | 11621/51904 | 22.7% | 11214/49301 | net income/net sales |
b | Return on assets | 11.9% | 11621/97793 | 11.8% | 11214/94853 | net income/total asset |
c | Return on equity | 30.6% | 11621/37920 | 33.4% | 11214/33571 | net income/equity |
d | Current ratio | 1.51 | 47755/31712 | 1.72 | 43573/25331 | current assets/current liabilities |
It is | Quick ratio | 1.46 | (47755-1383)/31712 | 1.67 | (43573-1282)/25331 | (current assets-inventory)/current liabilities |
f | Days in inventory | 26 days | 365 days/13.91 | 26 days | 365 days/13.74 | 365days/inventory turnover ratio |
g | Days in receivables | 39 days | (5491/51904)*365days | 41 days | (5472/49301)*365days | (Account receivable/revenue)*365days |
h | Days in payables | 39 days | (2059/19238)*365days | 46 days | (2218/17618)*365days | (Account payable/cost of sales)*365 days |
i | Cash conversion cycle | 26 days | 26+39-39 | 21 days | 26+41-46 | f+g-h |
j | Liabilities to assets ratio | 0.66 | 64222/97793 | 0.6 | 56933/94853 | total liabilites/total assets |
k | Interest coverage ratio | 15.55 | 14219/859 | 23.28 | 13620/585 | EBIT/interest expenses |
Assume that you work in the corporate credit(loans) department of a bank. The company would like to borrow$1000 million for a period of 5-years from your bank. Based on the ratios in part A and analysis of financial performance of the company, will you extend a loan of $1000 million to the company? Briefly consider the effect of approving the loan on the company's (i) liabilities to assets ratio (ii) interest coverage ratio state your assumptions where appropriate
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
Posted Date: