Financial Analysis Simulation: Data Detective (Case Study)

Below is the financials assumed for American Electric. Analyse the financials to identify if company matches the financial statements. Provide final answers, rationale, and confidence level!

American Electric Power is a public utility holding company that owns, directly or indirectly, all of the outstanding common stock of its public utility subsidiaries and varying percentages of other subsidiaries. AEPs primary business is the generation, transmission, and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by these subsidiaries. The service areas of AEPs public utility subsidiaries cover portions of the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. AEPs transmission networks are interconnected with extensive distribution facilities in the territories served. As of December 31, 2017, AEPs vertically integrated public utility subsidiaries owned or leased approximately 23,000 megawatts of domestic generation. The public utility subsidiaries of AEP traditionally provide electric service on an integrated basis to their various customers, except when the applicable regulatory environment requires the unbundling of these services. A significant portion of its power generation capacity is fueled by coal, with the remainder from a mix of natural gas, renewables, and nuclear

Balance Sheet	in %
Cash, Cash Equivalents & ST Investments	13
Accounts Receivable	2.6
Other Receivables	0
Total Receivable	2.6
Inventory	1.7
Other Current Assets	1.8
Total Current Assets	19.2
Property, Plant & Equipment	70.2
Long-term investments & other LT Assets	5.1
Goodwill & Other Intangibles	5.5
Total Assets	100
Accounts Payable	5.3
Accrued Expenses	7.1
Unearned Revenue	13.8
Other Current Liablities	1.4
Total Current Liabilities	27.5
Long-term debt	13.3
Capital Leases	0
Other Non-current liabilities	17.7
Total Liablities	58.5
Common Stock	3.2
Additional Paid in Capital	5.8
Retained Earnings	58.2
Treasury Stock	-25.7
Comprehensive Income & Other	0
Total Equity	41.5
Total Liabilities & Equity	100
Income Statement
Revenue	100
Cost of Goods Sold	65.7
Selling, General & Admin Exp	1.1
R&D Exp	0
Depreciation & Amort	5.8
Other Operating Expenses/Income	11.2
Interest Expense	-0.1
Other Expenses & Revenues	-0.8
Income tax expense	-1.1
Other	0
Net Income	16.5
Ratios
ROE	37
Profit Margin	16.5
Asset Turnover	0.9x
ROA	8.9
LT Asset Turnover	1.3x
Inventory Turnover	36.7x
Days Inventory held	9.9
AR Turnover	32x
Days Sales Outstanding	11.4
AP Turnover	11.2x
Days Payable Outstanding	32.6
Working Capital Turnover	-0.17
Leverage Ratio	1.4x
Current Ratio	0.7x
Quick Ratio	0.6x