Evaluating Financial Performance Ratio Analysis

In this assignment, you will be comparing financial ratios between Wicked Good Cupcakes and the company you chose to blog about.

Using the attached Excel spreadsheet for Wicked Good Cupcakes (WGC) calculate the listed ratios.

	ANNUAL BALANCE SHEET
	($ Thousands)
									31-Dec-15	31-Dec-16
			31-Dec-15	31-Dec-16
	ASSETS							Profitability Ratios (in %)
	Cash & Short-Term Investments		$17.11	$25.05				Return on equity
	Net Receivables		$1.62	$1.84				Return on assets
	Inventories		$42.72	$39.68				Return on invested capital
	Prepaid Expenses		$0.00	$0.00				Profit margin
	Other Current Assets		$3.38	$2.93				Gross margin
	Total Current Assets		$64.84	$69.49				Turnover-Control Ratios
								Asset turnover
	Gross Plant, Property & Equipment		$63.75	$58.28				Fixed-asset turnover
	Accumulated Depreciation		$36.16	$32.61				Inventory turnover
								Collection period (days)
	Net Plant, Property & Equipment		$27.58	$25.67				Days' sales in cash
	Intangibles		$5.88	$6.01				Payables period
	Other Assets		$6.16	$5.81
								Leverage and Liquidity Ratios
	TOTAL ASSETS		$104.47	$106.98				Assets to equity
								Debt to assets
	LIABILITIES							Debt to equity
	Long Term Debt Due In One Year		$0.00	$0.00				Times interest earned
	Accounts Payable		$10.59	$11.91				Current ratio
	Taxes Payable		$1.87	$2.01				Acid test
	Accrued Expenses		$7.19	$6.91
	Other Current Liabilities		$1.88	$1.85
	Total Current Liabilities		$21.54	$22.67
	Long Term Debt		$6.95	$19.79
	Deferred Taxes		$1.16	$2.32
	Other Liabilities		$3.04	$2.43
	TOTAL LIABILITIES		$32.68	$47.21
	EQUITY
	Common Stock		$0.07	$0.06
	Capital Surplus		$27.25	$24.31
	Retained Earnings		$73.89	$61.10
	Less: Treasury Stock		$29.42	$25.71
	TOTAL EQUITY		$71.79	$59.77
	TOTAL LIABILITIES & EQUITY		$104.47	$106.98
	Common Shares Outstanding		$5.14	$5.05
	Annual Income Statement
	($ Thousands, except per share )
	Sales		$179.24	$164.28
	Cost of Goods Sold		$95.71	$91.99
	Gross Profit		$83.53	$72.29
	Selling, General, & Administrative Exp.		$56.36	$50.65
	Operating Income Before Deprec.		$27.17	$21.64
	Depreciation,Depletion,&Amortization		$5.85	$5.89
	Operating Profit		$21.33	$15.74
	Interest Expense		$0.88	$0.56
	Non-Operating Income/Expense		$0.93	$0.31
	Special Items		$0.00	$0.00
	Pretax Income		$21.38	$15.49
	Total Income Taxes		$7.23	$5.60
	Income Before Extraordinary
	Items & Discontinued Operations		$14.15	$9.90
	Savings Due to Common Stock Equiv.		$0.00	$0.00
	Adjusted Net Income		$14.15	$9.90
	EPS Basic from Operations		$0.26	$0.19
	EPS Diluted from Operations		$0.25	$0.19
	Dividends Per Share		$0.02	$0.00
	Com Shares for Basic EPS		$5.06	$5.12
	Com Shares for Diluted EPS		$5.21	$5.27

Evaluating Financial Performance Ratio Analysis In this assignment, you will be comparing financial ratios between Wicked Good Cupcakes and the company you chose to blog about. Instructions: Using the attached Excel spreadsheet for Wicked Good Cupcakes (WGC) calculate the listed ratios. 1. Copy and paste your ratio calculation as a Table 1, inserted into the Word 2. What do these ratios suggest about the company's performance during the 3. In Table 2 list the 5 ratios from your 'blog company' and corresponding ratios for 4. Are these ratios 'comparable' for these two companies? Explain why you think 5. Which ratios would a senior operational manager for WGC be most interested in document. period presented? WGC they areot comparable. following