Questions
Growth Profitability and Financial Ratios for Alamo Group Inc Financials 2015-12 2016-12 2017-12 TTM Revenue USD...

Growth Profitability and Financial Ratios for Alamo Group Inc
Financials
2015-12 2016-12 2017-12 TTM
Revenue USD Mil 880 845 912 935
Gross Margin % 23 24.3 25.7 25.8
Operating Income USD Mil 67 68 89 90
Operating Margin % 7.6 8 9.7 9.6
Net Income USD Mil 43 40 44 47
Earnings Per Share USD 3.76 3.46 3.79 3.98
Dividends USD 0.32 0.36 0.4 0.41
Payout Ratio % * 8.2 9.2 9.3 10.3
Shares Mil 11 12 12 12
Book Value Per Share * USD 31.2 33.93 38.57 40.02
Operating Cash Flow USD Mil 53 76 71 44
Cap Spending USD Mil -15 -10 -13 -19
Free Cash Flow USD Mil 37 66 57 25
Free Cash Flow Per Share * USD 2.35 4.65 4.89
Working Capital USD Mil 278 249 291
Key Ratios -> Profitability
Margins % of Sales 2015-12 2016-12 2017-12 TTM
Revenue 100 100 100 100
COGS 76.98 75.72 74.28 74.25
Gross Margin 23.02 24.28 25.72 25.75
SG&A 15.45 16.27 16 16.14
R&D
Other
Operating Margin 7.56 8 9.73 9.61
Net Int Inc & Other 0.04 -0.64 -0.7 -0.66
EBT Margin 7.6 7.36 9.03 8.95
Profitability 2015-12 2016-12 2017-12 TTM
Tax Rate % 35.38 35.61 46.2 44.18
Net Margin % 4.91 4.74 4.86 5
Asset Turnover (Average) 1.43 1.46 1.53 1.35
Return on Assets % 7.01 6.93 7.43 6.77
Financial Leverage (Average) 1.67 1.43 1.42 1.6
Return on Equity % 12.38 10.7 10.59 10.75
Return on Invested Capital % 9.19 9.09 9.72 8.74
Interest Coverage 10.94 11.52 18.02 18.26
Key Ratios -> Growth
2015-12 2016-12 2017-12 Latest Qtr
Revenue %
Year over Year 4.83 -3.96 8.01 10.54
3-Year Average 11.86 7.67 2.83
5-Year Average 10.89 6.95 7.74
10-Year Average 9.1 6.35 6.11
Operating Income %
Year over Year 6.17 1.64 31.23 6.27
3-Year Average 13.08 10.05 12.3
5-Year Average 16.6 6.02 14.04
10-Year Average 13.42 11.37 14.05
Net Income %
Year over Year 5 -7.32 10.66
3-Year Average 14.34 3.52 2.5
5-Year Average 15.4 4.54 8.92
10-Year Average 14.36 13.3 13.62
EPS %
Year over Year 9.94 -7.98 9.54 18.1
3-Year Average 16.14 5.34 3.48
5-Year Average 16.13 5.24 9.57
10-Year Average 12.68 11.55 11.82
Key Ratios -> Cash Flow
Cash Flow Ratios 2015-12 2016-12 2017-12 TTM
Operating Cash Flow Growth % YOY 0.74 0.44 -0.06
Free Cash Flow Growth % YOY 0.82 0.77 -0.13
Cap Ex as a % of Sales 1.76 1.16 1.48 2.02
Free Cash Flow/Sales % 4.22 7.79 6.28 2.7
Free Cash Flow/Net Income 0.86 1.64 1.29 0.54
Key Ratios -> Financial Health
Balance Sheet Items (in %) 2015-12 2016-12 2017-12 Latest Qtr
Cash & Short-Term Investments 4.46 3.04 3.97 10.17
Accounts Receivable 29.79 30.82 32.24 31.65
Inventory 24.98 24.56 24.32 22.55
Other Current Assets 0.9 0.85 0.83 1.05
Total Current Assets 60.13 59.27 61.36 65.41
Net PP&E 17.98 17.66 16.44 15.32
Intangibles 21.29 22.59 21.52 18.36
Other Long-Term Assets 0.6 0.49 0.68 0.91
Total Assets 100 100 100 100
Accounts Payable 7.54 7.8 8.73 8.29
Short-Term Debt 0.01 0.01 0.01 0.04
Taxes Payable 0.58 0.84 0.92 0.74
Accrued Liabilities 5.96 2.08 1.95 4.46
Other Short-Term Liabilities 3.5 4.23
Total Current Liabilities 14.09 14.24 15.85 13.53
Long-Term Debt 23.86 12.67 9.38 19.71
Other Long-Term Liabilities 2.32 2.96 4.56 4.23
Total Liabilities 40.27 29.86 29.79 37.47
Total Stockholders' Equity 59.73 70.14 70.21 62.53
Total Liabilities & Equity 100 100 100 100
Liquidity/Financial Health 2015-12 2016-12 2017-12 Latest Qtr
Current Ratio 4.26 4.16 3.87 4.83
Quick Ratio 2.43 2.38 2.29 3.09
Financial Leverage 1.67 1.43 1.42 1.6
Debt/Equity 0.4 0.18 0.13 0.32
Key Ratios -> Efficiency Ratios
Efficiency 2015-12 2016-12 2017-12 TTM
Days Sales Outstanding 73.31 75.32 75.23 84.12
Days Inventory 85.4 81.75 78.45 81.39
Payables Period 25.13 25.29 26.65 30.54
Cash Conversion Cycle 133.58 131.78 127.03 134.96
Receivables Turnover 4.98 4.85 4.85 4.34
Inventory Turnover 4.27 4.46 4.65 4.48
Fixed Assets Turnover 8.25 8.2 9 8.96
Asset Turnover 1.43 1.46 1.53 1.35

Alamo Group (ALG) The Company is a leader in the design and manufacture of high-quality agricultural equipment and infrastructure maintenance equipment for governmental and industrial use. The company is headquartered in Seguin, Texas. considering an investment in the common stock of Alamo Group, Inc is this possible?

In: Finance

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information



In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

  2021 2022 2023
Cost incurred during the year $ 2,610,000   $ 3,162,000   $ 2,230,800  
Estimated costs to complete as of year-end   6,390,000     2,028,000     0  
Billings during the year   2,100,000     3,672,000     4,228,000  
Cash collections during the year   1,850,000     3,000,000     5,150,000  
 


Westgate recognizes revenue over time according to percentage of completion.

5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

  2021 2022 2023
Costs incurred during the year $ 2,610,000   $ 3,850,000   $ 4,050,000  
Estimated costs to complete as of year-end   6,390,000     4,200,000     0  
 

In: Accounting

Multiple-Product Break-even, Break-Even Sales Revenue CherryBlossom Products Inc. produces and sells yoga-training products:how-to DVDs...

Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $76,680. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $18 and a variable cost per unit of $11. Total fixed cost must be increased by $25,560 (making total fixed cost $102,240). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same.

Compute the break-even quantity of each product.

In: Accounting

1)A perfectly competitive firm computes total revenue as A)MC x MR B)Price x Fixed Costs c)Price...

1)A perfectly competitive firm computes total revenue as A)MC x MR

B)Price x Fixed Costs

c)Price x MC

D)Price x Quantity

2)A perfectly competitive firm should shut down when

a)it cannot cover its total costs

b)it cannot cover its total revenue

c)it cannot cover its marginal revenue

d)it cannot cover its variable costs

3)Perfectly competitive firm Doggies Paradise Inc. sells winter coats for dogs. Dog coats sell for $62 each. The fixed costs of production are $150. The total variable costs are $64 for one unit, $84 for two units, $114 for three units, $184 for four units, and $270 for five units. What is the marginal cost of going from two units of output to three units of output?

4)Which of the following is true about demand in a perfectly competitive environment?

A)Price < MR

B)Price = MC

C)MC < Price

d)MR > MC

5)A firm may enter a perfectly competitive market when...

A)it sees short run economic profits

B)it sees short run economic losses

C)it sees short run economic costs

D)the price is below the shutdown point

6)Perfectly competitive markets...

A)use fixed cost pricing

B)display allocation efficiency

C)display allocation inefficiency

d)avoid marginal cost pricing

7)Which is of the following is NOT an assumption of perfect competition?

A)imperfect information

B)homogeneous product

C)perfect information

d)no barriers to entry

8)In the long run , a perfectly competitive firm can expect...

a)negative economics profits

B)zero economic profits

C)many fixed inputs

D)positive economic profits

9)What rule does a perfectly competitive firm use to determine its profit maximizing level of output?

MC = ATC

MR = TR

MR = AFC

MC = MR

10)Firms is a perfectly competitive market are.

unaffected by price

unaffected by costs

price takers

price setters

In: Economics

Problem 3-23 Fiterman Inc. has the following summarized financial statements ($000): INCOME STATEMENT Revenue $25,970 Cost/Expense...

Problem 3-23

Fiterman Inc. has the following summarized financial statements ($000):

INCOME STATEMENT
Revenue $25,970
Cost/Expense    16,039
EBIT $  9,931
Interest (8%)    1,210
EBT $  8,721
Tax (35%)    3,052
Net income $  5,669
BALANCE SHEET
Assets Liabilities&Equity
Current Assets $  8,217 Current Liabilities $  7,042
Fixed Assets 30,636 Debt $17,167
Equity 14,644
Total Capital $31,811
Total Assets $38,853 Total Liab&Equity $38,853

Fiterman’s equity investors have typically demanded an expected return of at least 25% before they will buy the company’s stock. Evaluate Fiterman’s performance using both ROE and EVA® approaches. Do not round intermediate calculations. Round your answer for ROE to one decimal place, don't include the "%". Round your answer for EVA® to the nearest dollar, don't include the "$".

ROE    %

EVA®     $

In: Finance

BiltMore Bicyle Corporation+B2:C23B14B2:C22 Consolidated Income Statement For the Year Ended December 31, 2018 Revenue Sales 57,304,000...

BiltMore Bicyle Corporation+B2:C23B14B2:C22
Consolidated Income Statement
For the Year Ended December 31, 2018
Revenue
Sales 57,304,000
Sale Return -221,600
Net Sales 57,082,400
Cost of Goods sold -5,771,950
Contribution Margin 51,310,450
Expenses:
Corporate Salaries 3500000
Corporate benefits 1250000
Salaries and benefits (retail staff) 398,268
Utility expense 145,400
Supply expense 1,540,000
Interest expense 700,000
Marketing cost 210,000
Contribution and Community Involvement 58,000
Direct Cost 9,196,000
Labor: Variable 1,408,000
Labor: fixed 1,280,000
Supervision 1,200,000
Energy: Variable 1,440,000
Energy:fixed 1,240,000
Depreciation 2,700,000
Head office 2,280,000
Other cost 2,967,000
Total Expenses 31,512,668
Operating Income 19,797,782
Income tax 5,741,356.78
Net Income 14,056,425.22

Profit margin

complete a vertical analysis where total Sales = 100%. Then compute the following financial ratios:

Contribution Margin %

Profit Margin %

27%

In: Accounting

You are a real estate agent thinking of placing a sign advertising your services at a...

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost

$5,500

and will be posted for one year. You expect that it will generate additional revenue of

$715

a month. What is the payback​ period?

In: Finance

Assume consumers are operating on the elastic portion of the demand curve and the firm meeting...

Assume consumers are operating on the elastic portion of the demand curve and the firm meeting this demand increases the price of the good. What can one conclude about the impact on the quantity demanded (%∆QDrelative to %∆P) and on the revenue the firm receives (or, equivalently, the consumers expend)?

In: Economics

In what way(s) is a monopolistically competitive firm inefficient? a. it charges a price lower than...

In what way(s) is a monopolistically competitive firm inefficient?

a. it charges a price lower than marginal cost

b. it does not produce at the minimum of its average cost curve

c. it produces where marginal revenue is equal to marginal cost

In: Economics

If an existed dairy industry start new product line ( evaporated filled milk) and the market...

If an existed dairy industry start new product line ( evaporated filled milk) and the market structural is monopolistic, how can i apply the managerial economic aspects and curve?(elasticity, when it gain it's revenue)..in short and long run

In: Economics