Profitability, Risk, and Cash Flow Analysis:

(a) Prepare common-size statements of operations for the past five fiscal years (2007–2011) and common-size balance sheets on the respective end of fiscal years for Diamond. Based on your review of the common-size financial statements, describe important changes over the years (2007–2011) in the financials of Diamond.

(b) Apply the DuPont model (which disaggregates the performance of managers into three components—profitability, asset utilization, and financial leverage) to analyze the financial performance of Diamond during 2009–2011

  

Transcribed Image Text:

Current assets: Cash and cash equivalents Trade receivables, net ASSETS Inventories Deferred income taxes Prepaid income taxes Property held for sale Prepaid expenses and other current assets Total current assets Restricted cash Property, plant and equipment, gross Accum Depn. - Property, plant and equipment Property, plant and equipment, net Deferred income taxes Goodwill Intangible assets not subject to amortization Intangible assets subject to amorization, gross Accum. Amortization - Other intangible assets Intangible assets, subject to amortization, net Other long-term assets Total assets Current liabilities: LIABILITIES AND STOCKHOLDERS EQUITY Balance Sheet, July 31 (Amounts in thousand dollars) 2011 2010 2009 Current portion of long-term debt Accounts payable and accrued liabilities Payable to growers (Note 1) Total current liabilities Long-term obligations Deferred income taxes Other liabilities Stockholders equity: Common stock, $0.001 par value Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive gain/(loss) Retained earnings Total stockholders equity Total liabilities and stockholders equity 3,112 98,218 145,575 13,249 2,783 13,102 276,039 15,795 247,645 (120,238) 127,407 3,870 407,587 301,148 163,786 (14,079) 149,707 6,842 1,288,395 2011 41,700 128,874 15,186 185,760 490,001 131,870 25,969 22 (6,867) 318,083 18,500 125,057 454,795 1,288,395 5,642 65,553 143,405 10,497 9,225 5,767 240,089 - 220,383 (102,567) 117,816 13,625 396,788 297,500 157,300 (5,782) 151,518 8,536 1,225,872 2010 40,000 92,166 35,755 167,921 516,100 144,755 17,153 22 (5,050) 307,032 (869) 78,808 379,943 1,225,872 24,802 33,492 85,027 13,109 3,594 160,024 143,554 (92,439) 51,115 6,230 76,076 62,500 37,300 (1,917) 35,383 3,564 394,892 2009 15,000 64,453 29,149 108,602 100,085 1,221 11,643 17 (4,256) 122,817 (1,296) 56,059 173,341 394,892 2008 74,279 46,256 88,526 7,387 4,261 220,709 122,078 (87,472) 34,606 5,802 5,432 4,000 (527) 3,473 3,245 273,267 2008 42,251 56,942 99,193 20,204 7,647 16 (3,203) 112,550 1,584 35,276 146,223 273,267 2007 33,755 50,662 90,619 4,805 1,854 2,417 184,112 117,802 (83,866) 33,936 4,922 5,432 4,000 (293) 3,707 4,294 236,403 2007 162 26,306 57,117 83,585 20,345 7,132 16 (1,436) 101,106 2,233 23,422 125,341 236,403 2006 35,614 49,536 99,177 4,578 3,147 1,728 4,182 197,962 111,100 (76,809) 34,291 4,812 5,077 4,000 (59) 3,941 6,949 253,032 2006 28,371 81,902 110,273 20,000 11,933 16 93,962 (36) 16,884 110,826 253,032 Current assets: Cash and cash equivalents Trade receivables, net ASSETS Inventories Deferred income taxes Prepaid income taxes Property held for sale Prepaid expenses and other current assets Total current assets Restricted cash Property, plant and equipment, gross Accum Depn. - Property, plant and equipment Property, plant and equipment, net Deferred income taxes Goodwill Intangible assets not subject to amortization Intangible assets subject to amorization, gross Accum. Amortization - Other intangible assets Intangible assets, subject to amortization, net Other long-term assets Total assets Current liabilities: LIABILITIES AND STOCKHOLDERS EQUITY Balance Sheet, July 31 (Amounts in thousand dollars) 2011 2010 2009 Current portion of long-term debt Accounts payable and accrued liabilities Payable to growers (Note 1) Total current liabilities Long-term obligations Deferred income taxes Other liabilities Stockholders equity: Common stock, $0.001 par value Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive gain/(loss) Retained earnings Total stockholders equity Total liabilities and stockholders equity 3,112 98,218 145,575 13,249 2,783 13,102 276,039 15,795 247,645 (120,238) 127,407 3,870 407,587 301,148 163,786 (14,079) 149,707 6,842 1,288,395 2011 41,700 128,874 15,186 185,760 490,001 131,870 25,969 22 (6,867) 318,083 18,500 125,057 454,795 1,288,395 5,642 65,553 143,405 10,497 9,225 5,767 240,089 - 220,383 (102,567) 117,816 13,625 396,788 297,500 157,300 (5,782) 151,518 8,536 1,225,872 2010 40,000 92,166 35,755 167,921 516,100 144,755 17,153 22 (5,050) 307,032 (869) 78,808 379,943 1,225,872 24,802 33,492 85,027 13,109 3,594 160,024 143,554 (92,439) 51,115 6,230 76,076 62,500 37,300 (1,917) 35,383 3,564 394,892 2009 15,000 64,453 29,149 108,602 100,085 1,221 11,643 17 (4,256) 122,817 (1,296) 56,059 173,341 394,892 2008 74,279 46,256 88,526 7,387 4,261 220,709 122,078 (87,472) 34,606 5,802 5,432 4,000 (527) 3,473 3,245 273,267 2008 42,251 56,942 99,193 20,204 7,647 16 (3,203) 112,550 1,584 35,276 146,223 273,267 2007 33,755 50,662 90,619 4,805 1,854 2,417 184,112 117,802 (83,866) 33,936 4,922 5,432 4,000 (293) 3,707 4,294 236,403 2007 162 26,306 57,117 83,585 20,345 7,132 16 (1,436) 101,106 2,233 23,422 125,341 236,403 2006 35,614 49,536 99,177 4,578 3,147 1,728 4,182 197,962 111,100 (76,809) 34,291 4,812 5,077 4,000 (59) 3,941 6,949 253,032 2006 28,371 81,902 110,273 20,000 11,933 16 93,962 (36) 16,884 110,826 253,032

Answer rating: 100% (QA)

To fulfill your request I would need to perform two different analyses using the data provided a Preparation of CommonSize Statements Commonsize finan... View the full answer