Question

Strategic Management

1) You are given the following information from another not-so-well known corporation. Conduct an analysis of the data. This analysis should include year-over-year changes in terms of percentage and absolute/net for:

• Revenues (Sales Revenues)
• Operating Income
• Net Income (Profit After Taxes)

Then, calculate the following ratios for each year:

• Current Ratio

• Working Capital

• Net Profit Margin

• Operating Profit Margin
• Net Return on Total Assets (ROA)
• Return on Stockholders Equity

                                                     2019               2018             2017     2016        

Sales (Sales Revenue)          2,529,195       2,385,002       2,130,057       1,822,032        

Operating Income                     275,943          309,756         282,870         220,259          

Profit After Taxes                      179,293         196,169         173,448         135,952          

Total Assets                           1,390,902        1,180,862          1,268,163    1,027,322        

Total Stockholders Equity   736,184    699,892          821,919        655,076

Current Assets                         406,384         302,716         478,842         353,119

Current Liabilities                    352,712        303,325         277,450         238,334                         

Be sure to include a summary on your assessment. What was the trend with Revenues? Operating Income? Net Income? Using the Appendix, did each of the ratios meet the criteria for good performance? Is the trend positive, negative, about the same? Summarize the performance of each of the 6 ratios.

Present your completed problem demonstrating the analysis in a table or chart format!

Answer 1

		2016	2017	2018	2019
a	Sales	$   18,22,032	$   21,30,057	$   23,85,002	$   25,29,195
b	Operating income	$     2,20,259	$     2,82,870	$     3,09,756	$     2,75,943
c	Profit after taxes	$     1,35,952	$     1,73,448	$     1,96,169	$     1,79,293
d	Total assets	$   10,27,322	$   12,68,163	$   11,80,862	$   13,90,902
e	Total stockholders' equity	$     6,55,076	$     8,21,919	$     6,99,892	$     7,36,184
f	Current assets	$     3,53,119	$     4,78,842	$     3,02,716	$     4,06,384
g	Current liabilities	$     2,38,334	$     2,77,450	$     3,03,325	$     3,52,712
f/g	Current ratio	1.48	1.73	1.00	1.15
f -g	Working capital	$     1,14,785	$     2,01,392	$            -609	$        53,672
c/a	Net profit margin	0.07	0.08	0.08	0.07
b/a	Operating profit margin	0.12	0.13	0.13	0.11
c/d	Net return on Total assets	0.13	0.14	0.17	0.13
b/e	Return on stockholders' equity	0.34	0.34	0.44	0.37