Question

Osun Components would like to assess their financial performance over the past two years. They have asked for your help in calculating several financial key performance indicators (KPIs) based on the current fiscal year (FY 0).

The income statement and the balance sheet for Osun Components are available below.

Income Statement (in thousands of dollars)

	FY -1	FY 0
Sales	$5000	$7300
Cost of Goods Sold	$3500	$3900
Gross Profit	$1500	$3400
SG&A Expenses	$600	$700
Depreciation & amortization	$0	$0
EBIT	$900	$2700
Interest Expense	$0	$0
Income Taxes	$270	$810
Net Income	$630	$1890

Balance Sheet (in thousands of dollars)

	FY -1	FY 0
Cash & Equivalents	$500	$500
Accounts Receivable	$550	$700
Inventories	$700	$1000
Total Current Assets	$1750	$2200
Net Property/Plant/Equipment	$2500	$3500
Total Long Term Assets	$2500	$3500
Total Assets	$4250	$5700
Accounts Payable	$550	$600
Total Current Liabilities	$550	$600
Long Term Debt	$0	$0
Total Liabilities	$550	$600
Common Stock	$2900	$4100
Retained Earnings	$800	$1000
Total Stockholder's Equity	$3700	$5100
Total Liabilities & Equity	$4250	$5700

For all questions that incorporate values from the balance sheet, use the single number from the FY 0 balance sheet as a snapshot of value rather than trying to calculate an average value by incorporating a balance sheet number from the previous period.

Notes: (1) all sales are on credit, (2) the tax rate is 30%.

Part 1)

Calculate these financial KPIs for the most recent Fiscal Year (FY 0) for Osun Components: Inventory Turnover, Accounts Receivable Turnover, Accounts Payable Turnover, and Return on Assets (ROA).

Note: When a percent value is called for, enter your answer as a percentage between 0% and 100% without the percent (not as a decimal value between 0 and 1). Otherwise, enter a decimal value. Round your answers to the nearest hundredths

What is the Inventory Turnover for FY 0 as a decimal value? _________________

What is the Accounts Receivable Turnover for FY 0 as a decimal value? _________________

What is the Accounts Payable Turnover for FY 0 as a decimal value? __________________

What is the Return on Assets (ROA) for FY 0 as a percent value? __________________

Part 2)

Calculate the following overall performance metrics for FY 0: Return on Equity (ROE) and Net Operating Profit After Tax (NOPAT).

Note: When a percent value is called for, enter your answer as a percentage between 0% and 100% without the percent (not as a decimal value between 0 and 1). Otherwise, enter a decimal value. Round your answers to the nearest hundredths

What is the Return on Equity (ROE) for FY 0 as a percent value? ___________________

What is the Net Operating Profit After Tax (NOPAT) for FY 0 in thousands of dollars? _____________________

Part 3)

Calculate the following overall performance metrics for FY 0: Invested Capital and Return on Invested Capital (ROIC).

Note: When a percent value is called for, enter your answer as a percentage between 0% and 100% without the percent (not as a decimal value between 0 and 1). Otherwise, enter a decimal value. Round your answers to the nearest hundredths

What is the Invested Capital for FY 0 in thousands of dollars? _____________________

What is the Return on Invested Capital (ROIC) for FY 0 as a percent value? ______________________

Answer 1