The Steph&Oliv Corporation's 2008 financial statements follow, along with some industry average ratios. a. Calculate Steph&Oliv's...

 

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The Steph&Oliv Corporation's 2008 financial statements follow, along with some industry average ratios. a. Calculate Steph&Oliv's 2008 ratios. b. Compare them with the industry average data and comment briefly on Steph&Oliv strengths and weaknesses. No c. What do you think would happen to Steph & Oliv's ratios if the company decided to hold lower levels of inventory (less inventory)? calculations are necessary. Think about which ratios would be affected by the changes in this item. Steph & Oliv Corporation: Balance Sheet as of December 31, 2008 $ Cash Accounts receivable (receivables) Inventories Total current assets Total fixed assets Total assets Accounts and notes payable Accruals Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity 4 Steph & Oliv Corporation: Income Statement 2008 Sales Cost of goods sold Gross operating profit General administrative and selling expenses Depreciation Miscellaneous Earnings before taxes (EBT) Taxes (40%) Net income Per-Share Data Earnings per share Market Price Per share $4,71 $23,55 80 450 950 $1,480 440 $1,920 460 190 650 420 595 255 $1,920 $4,290 3.580 $ $ 710 236 150 134 190 76 $ 114 Industry Financial Ratios (2008) Quick ratio Current ratio Inventory turnover Days sales outstanding Return on assets Return on equity Total assets turnover Profit margin on sales Debt ratio P/E ratio 1.5 2.8 7.0 30 days 9.1% 18.2% 2.6 3.5% 50.0% 6.0 Company ratios The Steph&Oliv Corporation's 2008 financial statements follow, along with some industry average ratios. a. Calculate Steph&Oliv's 2008 ratios. b. Compare them with the industry average data and comment briefly on Steph&Oliv strengths and weaknesses. No c. What do you think would happen to Steph & Oliv's ratios if the company decided to hold lower levels of inventory (less inventory)? calculations are necessary. Think about which ratios would be affected by the changes in this item. Steph & Oliv Corporation: Balance Sheet as of December 31, 2008 $ Cash Accounts receivable (receivables) Inventories Total current assets Total fixed assets Total assets Accounts and notes payable Accruals Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity 4 Steph & Oliv Corporation: Income Statement 2008 Sales Cost of goods sold Gross operating profit General administrative and selling expenses Depreciation Miscellaneous Earnings before taxes (EBT) Taxes (40%) Net income Per-Share Data Earnings per share Market Price Per share $4,71 $23,55 80 450 950 $1,480 440 $1,920 460 190 650 420 595 255 $1,920 $4,290 3.580 $ $ 710 236 150 134 190 76 $ 114 Industry Financial Ratios (2008) Quick ratio Current ratio Inventory turnover Days sales outstanding Return on assets Return on equity Total assets turnover Profit margin on sales Debt ratio P/E ratio 1.5 2.8 7.0 30 days 9.1% 18.2% 2.6 3.5% 50.0% 6.0 Company ratios

Answer rating: 100% (QA)

Lets calculate Steph Oliv Corporations 2008 financial ratios and compare them with the industry average data 1 Current Ratio Current Assets Current Li... View the full answer