PGJ is a large producer of food products. In 2015, the percentage breakdown of revenues and profits


PGJ is a large producer of food products. In 2015, the percentage breakdown of revenues and profits was as follows:

Packaged foods Coffee Processed meat Food service-other Revenues (%) 41 28 19 12 100 Profits (%) 62 19 13 la

International operations account for about 22 percent of sales and 17 percent of operating profit. For the 2011–2015 fiscal years, the number of shares outstanding (in millions) and selected income statement data were (in millions of dollars) as follows:

Shares Oper. Outst. Year Revenues Inc. 49.93 49.97 49.43 49.45 51.92 2011 $5,472 $524 2012 5,960 534 2013

a. For each year, calculate operating income as a percentage of revenues.

b. Calculate annual net profits after tax as a percentage of revenues.

c. Calculate annual after-tax profits per share outstanding (EPS).

The balance sheet data for the same fiscal years (in millions of dollars) were as follows:

Year Cash 2011 2012 2013 2014 2015 Current Assets $291 $1,736 178 1,951 309 2,019 163 2,254 285 2,315

d. Calculate the ratio of current assets to current liabilities for each year.

e. Calculate long‐term debt as a percentage of common equity for each year.

f. For each year, calculate the book value per share as the common equity divided by the number of shares outstanding.

g. Calculate ROE for each year.

h. Calculate ROA for each year.

i. Calculate leverage for each year.

j. Calculate the net income margin for each year.

k. Calculate turnover for each year.

l. Calculate the EBIT for each year.

m. Calculate the income ratio for each year.

n. Calculate operating efficiency for each year.

o. On the basis of these calculations, evaluate the current status of the health of PGJ and the changes over the period.

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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