Question

Questions relate to John Deere Stock (Q2 2018). All websites should show the same values, however I am using MSN Money as the site that I get my data from for grading. Also note that when looking at financials, you will need to select the Quarterly button to get the quarterly results. Yahoo Stock Price History can also be helpful and you will want to use end-of-day close values.

Show and compute the following (don’t use Key Ratios precomputed from the site). Compute the ratios using the methods described in this class (which may not always give you the same number as shown in Key Ratios). In particular, many websites report Financial Ratios based on the last reported annual results, but in this assignment we are reporting ratios for Q2 2018. Note that sales = Total Revenue, and Shares outstanding is reported at the end of the Balance Sheet as “Ordinary Shares Outstanding”

Current Assets=

Current Liabilities=

Working Capital (compute). Enter as a positive number.=

Inventory Turnover Ratio (computed) (enter as a decimal)=

P/E Ratio (computed)=

Answer 1

Source : https://www.msn.com/en-in/money/stockdetails/financials/fi-126.1.DE.NYS

Current Assets: Cash, Equiv and Short-Term Investments + Receivables + Inventory = 4,201.4 + 6,511.1 + 6,888.9 = 17,601.4

Current Liabilities:Payables + Current Debt = 9,789.6 + 15,295.7 = 25,085.3

Working Capital = Current Assets - Current Liabilities : 17,601.4 - 25,085.3 = 7,483.9

Working Capital is negative. But, entering it as a positive number as requested.

Inventory Turnover Ratio = Sales/Inventory = 10,720.0 / 6,888.9 = 1.556

Can also be calculated using Cost of Goods Sold / Inventory = 7,333.3 / 6,888.9 = 1.064

Ordinary Shares o/s (End of Q2 2018) = 324.3 million

Net Income (Q2 2018 ) = 1,208.3 million

EPS = 1208.3/324.3 = 3.726

Price Per Share = 139.65

P/E Ratio (Considering Earnings for Q2 2018) = Price per Share / Earnings Per share = 139.62/3.726 = 37.47

P/E Ratio (Annualized Earnings for Q2 2018) = Price per Share / Annualized Earnings Per share = 139.62/ (3.726*4) = 37.47/4 = 9.368

Please reach out in case of any doubts