An analysis of the capital structure. From the leverage ratios you calculated in DuPont analysis, you start
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An analysis of the capital structure.
From the leverage ratios you calculated in DuPont analysis, you start to examine the composition of liabilities. Have you noticed any significant changes from a trend analysis of long-term debts and short-term debts? How does that relate to the result of your trend analysis of leverage ratios?
Calculate current ratios, quick ratios, days sales outstanding, days on hand of inventory, number of days payables, and cash conversion cycle. Comment on the results of the trend analysis of those efficiency ratios. Stick with the formula used in the textbooks and slides.
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Consolidated Statement of Cash Flow - USD ($) $ in Millions Cash flow from operating activities: Profit of consolidated and affiliated companies Adjustments for non-cash items: Depreciation and amortization Net gain from sale of businesses and investments Goodwill impairment charge Other Changes in assets and liabilities, net of acquisitions and divestitures: Receivables - trade and other Inventories Accounts payable Accrued expenses Accrued wages, salaries and employee benefits. Customer advances Other assets - net Other liabilities - net Net cash provided by (used for) operating activities Cash flow from investing activities: Capital expenditures - excluding equipment leased to others Expenditures for equipment leased to others Proceeds from disposals of leased assets and property, plant and equipment Additions to finance receivables Collections of finance receivables Proceeds from sale of finance receivables Investments and acquisitions (net of cash acquired) Proceeds from sale of businesses and investments (net of cash sold) Proceeds from sale of securities Investments in securities Other - net Net cash provided by (used for) investing activities Cash flow from financing activities: Dividends paid Distribution to noncontrolling interests Contribution from noncontrolling interests Common stock issued, including treasury shares reissued Treasury shares purchased Excess tax benefit from stock-based compensation Acquisitions of redeemable noncontrolling interests Acquisitions of noncontrolling interests Proceeds from debt issued (original maturities greater than three months): Machinery, Energy & Transportation Financial Products Payments on debt (original maturities greater than three months): Machinery, Energy & Transportation Financial Products Short-term borrowings - net (original maturities three months or less) Net cash provided by (used for) financing activities Effect of exchange rate changes on cash Increase (decrease) in cash and short-term investments Cash and short-term investments at beginning of period Cash and short-term investments at end of period 2021 12 Months Ended. 2020 $ 2,113 3,046 0 0 508 764 2,274 (1,165) (199) (389) (501) (220) 444 6,675 (1,388) (1,873) 760 (9,929) 9,247 136 (400) 178 351 (485) (114) (3,517) (1,757) (7) 0 33 (2,025) 24 0 0 3 5,129 (517) (7,775) 3,022 (3,870) (169) (881) 7,341 $ 6,460 $ 3,711 3,163 0 0 553 163 101 222 (10) 901 (593) (300) 146 8,057 (1,539) (1,840) 904 (11,278) 9,841 177 (30) 199 810 (825) (46) (3,627) (1,620) (7) 4 239 (4,238) 182 0 0 1,994 8,655 (785) (8,463) 1,043 (2,996) (174) 1,260 6,081 $7,341 2019 $ 3,803 3,087 0 0 482 835 2,658 134 (108) (279) (301) (49) (71) 10,191 (2,522) (1,924) 844 (11,422) 9,567 220 (195) 365 449 (402) (26) (5,046) (1,111) (13) 0 128 (2,000) 96 0 0 195 9,133 (1,769) (9,101) (69) (4,511) (43) 591 5,490 $6,081 2018 $5,722 2,813 -630 580 439 -15 -1,149 -1,868 126 -490 83 252 -679 5,184 -3,350 -1,726 1,117 -12,010 8,995 132 -618 1,199 306 -402 167 -6,190 -1,617 -6 0 52 0 192 -444 -5 2,209 13,806 -1,107 -9,940 466 3,606 -167 2,433 3,057 5,490 I 2017 $4,981 2,527 -128 0 585 -1,409 -2,927 1,555 255 619 237 -91 753 6,957 -2,515 -1,409 1,354 -10,001 8,874 207 -8,184 376 247 -336 -40 -11,427 -1,159 -3 0 123 0 189 0 -8 4,587 10,873 -2,269 -8,277 -37 4,019 -84 -535 3,592 3,057 Consolidated Statement of Cash Flow - USD ($) $ in Millions Cash flow from operating activities: Profit of consolidated and affiliated companies Adjustments for non-cash items: Depreciation and amortization Net gain from sale of businesses and investments Goodwill impairment charge Other Changes in assets and liabilities, net of acquisitions and divestitures: Receivables - trade and other Inventories Accounts payable Accrued expenses Accrued wages, salaries and employee benefits. Customer advances Other assets - net Other liabilities - net Net cash provided by (used for) operating activities Cash flow from investing activities: Capital expenditures - excluding equipment leased to others Expenditures for equipment leased to others Proceeds from disposals of leased assets and property, plant and equipment Additions to finance receivables Collections of finance receivables Proceeds from sale of finance receivables Investments and acquisitions (net of cash acquired) Proceeds from sale of businesses and investments (net of cash sold) Proceeds from sale of securities Investments in securities Other - net Net cash provided by (used for) investing activities Cash flow from financing activities: Dividends paid Distribution to noncontrolling interests Contribution from noncontrolling interests Common stock issued, including treasury shares reissued Treasury shares purchased Excess tax benefit from stock-based compensation Acquisitions of redeemable noncontrolling interests Acquisitions of noncontrolling interests Proceeds from debt issued (original maturities greater than three months): Machinery, Energy & Transportation Financial Products Payments on debt (original maturities greater than three months): Machinery, Energy & Transportation Financial Products Short-term borrowings - net (original maturities three months or less) Net cash provided by (used for) financing activities Effect of exchange rate changes on cash Increase (decrease) in cash and short-term investments Cash and short-term investments at beginning of period Cash and short-term investments at end of period 2021 12 Months Ended. 2020 $ 2,113 3,046 0 0 508 764 2,274 (1,165) (199) (389) (501) (220) 444 6,675 (1,388) (1,873) 760 (9,929) 9,247 136 (400) 178 351 (485) (114) (3,517) (1,757) (7) 0 33 (2,025) 24 0 0 3 5,129 (517) (7,775) 3,022 (3,870) (169) (881) 7,341 $ 6,460 $ 3,711 3,163 0 0 553 163 101 222 (10) 901 (593) (300) 146 8,057 (1,539) (1,840) 904 (11,278) 9,841 177 (30) 199 810 (825) (46) (3,627) (1,620) (7) 4 239 (4,238) 182 0 0 1,994 8,655 (785) (8,463) 1,043 (2,996) (174) 1,260 6,081 $7,341 2019 $ 3,803 3,087 0 0 482 835 2,658 134 (108) (279) (301) (49) (71) 10,191 (2,522) (1,924) 844 (11,422) 9,567 220 (195) 365 449 (402) (26) (5,046) (1,111) (13) 0 128 (2,000) 96 0 0 195 9,133 (1,769) (9,101) (69) (4,511) (43) 591 5,490 $6,081 2018 $5,722 2,813 -630 580 439 -15 -1,149 -1,868 126 -490 83 252 -679 5,184 -3,350 -1,726 1,117 -12,010 8,995 132 -618 1,199 306 -402 167 -6,190 -1,617 -6 0 52 0 192 -444 -5 2,209 13,806 -1,107 -9,940 466 3,606 -167 2,433 3,057 5,490 I 2017 $4,981 2,527 -128 0 585 -1,409 -2,927 1,555 255 619 237 -91 753 6,957 -2,515 -1,409 1,354 -10,001 8,874 207 -8,184 376 247 -336 -40 -11,427 -1,159 -3 0 123 0 189 0 -8 4,587 10,873 -2,269 -8,277 -37 4,019 -84 -535 3,592 3,057
Expert Answer:
Answer rating: 100% (QA)
Trend Analysis of LongTerm Debt and ShortTerm Debt The following table shows the trend analysis of longterm debt and shortterm debt from 2017 to 2020 Year LongTerm Debt ShortTerm Debt 2017 13800 5322 ... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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