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Financial Analysis

Income Statement   31/12/2014 31/12/2015   Percent Change
Revenues $127,079 $131,620 1 3.57%
Cost of Goods Sold 28,306 29,438 1 4.00%
Gross Profit 98,773 102,182 1 3.45%
Total Operating Expenses 106,894 98,460 -1 -7.89%
EBIT 20,185 33,160 1 64.28%
Interest Expense 4,915 4,920 1 0.10%
EBT 15,270 28,240 1 84.94%
Tax 3,314 9,865 1 197.68%
Non-Recurring Events 0 0 #DIV/0! #DIV/0!
Net Income 11,956 18,375 1 53.69%
Balance Sheet 31/12/2014 31/12/2015   Percent Change
Assets        
Cash and Equivalents $11,153 $4,820 -1 -57%
Accounts Receivable 13,993 13,457 -1 -4%
Inventory 1,153 1,252 1 9%
Other Current Assets 3,200 2,751 -1 -14%
Total Current Assets 29,499 22,280 -1 -24%
Property Plant & Equipment 89,947 83,451 -1 -7%
Goodwill 24,639 25,331 1 3%
Intangibles 88,531 103,311 1 17%
Other Long-Term Assets 0 10,267 #DIV/0! #DIV/0!
Total Assets 232,616 244,640 1 5%
         
Liabilities        
Accounts Payable 16,680 19,362 1 16%
Other Current Liabilities 11,307 15,690 1 39%
Total Current Liabilities 27,987 35,052 1 25%
Long-Term Debt 110,536 103,705 -1 -6%
Other Long-Term Liabilities 88,275 80,183 -1 -9%
Total Liabilities 226,798 218,940 -1 -3%
         
Equity        
Common Stock 424 424 0 0%
Retained Earnings 2,447 11,246 1 360%
Treasury Stock 1,111 550 -1 -50%
Paid in Capital & Other 9,694 5,622 -1 -42%
Total Equity 13,676 17,842 1 30%
         
Total Liabilities and Equity 240,474 236,782 -1 -2%

 
 
Company Valuation

0 2015
Stockholders’ Equity – (Goodwill + Intangibles) ($103,816)
Net Income x 5 $89,070
(Share Price/EPS) x Net Income $408
Number of Shares Outstanding x Share Price $397,400
Method Average $95,765
0 2014
Stockholders’ Equity – (Goodwill + Intangibles) ($93,410)
Net Income x 5 $53,430
(Share Price/EPS) x Net Income $442
Number of Shares Outstanding x Share Price $208,500
Method Average $42,240

 
Earnings Per Share

  Common Stock Financing and Debt
  Recession (2014) Normal (2013) Boom(2015)
EBIT $20,185 $31,944 $33,160
Interest 4,915 2,667 4,920
EBT 15,270 29,277 28,240
Taxes 3,314 5,730 9,865
EAT 11,956 23,547 18,375
# Shares (millions) 3,974 2,866 4,085
EPS $3.01 $8.22 $4.50

 

Complete Part II to Construct the Projected Financial Statements.
Projected Income Statement 31/1/2015 31/1/2016 31/1/2017
Revenues $131,620 $145,000 $154,000
Cost of Goods Sold 29,438 32,000 37,000
Gross Profit 102,182 113,000 117,000
TOTAL Operating Expenses 69,022 72,000 72,000
EBIT 33,160 41,000 45,000
Interest Expense 4,920 5,100 5,200
EBT 28,240 35,900 39,800
Tax 9,865 12,400 15,300
Non-Recurring Events 0 0 0
Net Income 18,375 23,500 24,500
Projected Balance Sheet 31/1/2015 31/1/2016 31/1/2017
Assets      
Cash and Equivalents $4,820 $5,400 $6,200
Accounts Receivable 15,416 12,100 8,400
Inventory 1,252 1,500 1,800
Other Current Assets 792 800 1,200
Total Current Assets 22,280 19,800 17,600
Property Plant & Equipment 83,451 80,000 105,000
Goodwill 25,331 28,000 32,000
Intangibles 8,338 8,338 8,338
Other Long-Term Assets 105,240 113,000 119,400
Total Assets 244,640 249,138 282,338
       
Liabilities      
Accounts Payable 26,314 32,000 43,000
Other Current Liabilities 8,738 9,200 13,000
Total Current Liabilities 35,052 41,200 56,000
Long-Term Debt 103,705 115,000 135,000
Other Long-Term Liabilities 88,041 87,904 94,000
Total Liabilities 226,798 244,104 285,000
       
Equity      
Common Stock 424 424 424
Retained Earnings 18,375 41,875 66,375
Treasury Stock (7,416) (7,416) (7,416)
Paid in Capital & Other 6,459 6,459 6,459
Total Equity 17,842 41,342 65,842
       
Total Liabilities and Equity 244,640 285,446 350,842

 
 
Ratios
Historical

  Historical Ratios
  31/1/2015   31/12/2014
Current Ratio 0.64   1.05
Quick Ratio 0.60   1.01
Total Debt-to-Total-Assets Ratio 0.93   0.97
Total Debt-to-Equity Ratio 12.71   12.27
Times-Interest-Earned Ratio 7   4
Inventory Turnover 24.48    
Fixed Assets Turnover 0.59    
Total Assets Turnover 0.54    
       
       
Gross Profit Margin % 78%   78%
Operating Profit Margin % 25%   16%
ROA % 8%   5%
ROE % 103%   87%

 
Projected

  Projected Ratios
  31/1/2015 31/12/2016 31/12/2017    
Current Ratio 0.64 0.48 0.31    
Quick Ratio 0.60 0.44 0.28    
Debt-to-Total-Assets Ratio 0.93 0.98 1.01    
Debt-to-Equity Ratio 12.71 5.90 4.33    
Times-Interest-Earned Ratio 7 8 9    
Inventory Turnover 24.48 5.81 27.41    
Fixed Assets Turnover 0.59 0.63 0.58    
Total Assets Turnover 0.54 0.58 0.55    
           
           
Gross Profit Margin % 78% 78% 76%    
Operating Profit Margin % 25% 28% 29%    
ROA % 8% 9% 9%    
ROE % 103% 57% 37%