| Case study 4: Store container corporation | | | | | Store container corporation key ratios 200X-200Z |
| Store container corporation balance sheet (millions of dollars) | | | | | Ratio | 200X | 200Y | 200Z | Industry |
| December 31, | 200X | 200Y | 200Z | | Liquidity |
| Assets | | | | | CA/CL | 1.97× | 1.94× | 2.61× | 1.80× |
| Cash and equivalent | $8,290 | $3,880 | $15,400 | | Cash + receivables/CL | 0.80× | 0.80× | 1.27× | 0.90× |
| Receivables | 123,860 | 127,950 | 243,140 | | Receivables/working capital | 78.00% | 83.00% | 74.00% | 69.00% |
| Inventories | 152,660 | 148,350 | 238,210 | | Inventory/working capital | 96.00% | 96.00% | 73.00% | 72.00% |
| Other current | 38,440 | 40,000 | 33,710 | | Debt |
| Total current | 323,250 | 320,180 | 530,460 | | TL/equity | 241.07% | 242.80% | 270.17% | 129.10% |
| Net property, plant, and equipment | 657,660 | 642,560 | 924,360 | | CL/equity | 55.69% | 56.03% | 52.75% | 50.90% |
| Other assets | 25,750 | 47,580 | 68,780 | | EBIT/interest | 1.93× | 1.02× | 1.70× | 5.76× |
| Total assets | $1,006,660 | $1,010,320 | $1,523,600 | | Profitability |
| Liabilities and stockholders’ equity | | | | | Net income/sales | 2.71% | 0.31% | 1.74% | 2.50% |
| Notes payable | $62,200 | $57,630 | $7,330 | | Sales/total assets | 1.24× | 1.22× | 1.33× | 1.68× |
| Accounts payable | 53,000 | 57,970 | 105,250 | | Total assets/equity | 3.41× | 3.43× | 3.95× | 3.26× |
| Income taxes payable | 3,740 | 4,120 | 5,880 | | Net income/equity | 11.40% | 1.28% | 9.18% | 13.70% |
| Other current | 45,440 | 45,410 | 84,950 | | Causal |
| Total current | 164,380 | 165,130 | 203,410 | | Fixed assets/equity | 222.82% | 218.01% | 239.71% | 110.00% |
| Long-term debt | 491,330 | 501,250 | 768,490 | | Collection period | 36.33 days | 38.00 days | 43.67 days | 38.90 days |
| Deferred taxes | 55,800 | 49,210 | 69,900 | | Sales/inventory | 8.15× | 8.29× | 8.53× | 12.30× |
| Total long-term debt | 547,130 | 550,460 | 838,390 | | Sales/equity | 4.22× | 4.17× | 5.27× | 2.63× |
| Total liabilities | 711,510 | 715,590 | 1,041,800 | | Net income/sales | 2.71% | 0.30% | 1.74% | 5.20% |
| Common stock | 147,390 | 152,170 | 222,360 | | Miscellaneous assets/equity | 8.72% | 16.14% | 17.83% | 7.95% |
| Retained earnings | 147,760 | 142,560 | 163,250 |
| Total common equity | 295,150 | 294,730 | 385,610 |
| Preferred stock | – | – | 96,190 |
| Total liabilities & equity | $1,006,660 | $1,010,320 | $1,523,600 |
| Net sales | $1,244,390 | $1,229,150 | $2,032,320 |
| Other income | 7,110 | 4,600 | 10,850 |
| Total | 1,251,500 | 1,233,750 | 2,043,170 |
| Costs and expenses |
| Cost of sales | 925,870 | 944,150 | 1,564,610 |
| Selling and administrative expenses | 147,640 | 156,990 | 241,180 |
| Depreciation and amortization | 63,380 | 67,810 | 92,310 |
| Interest expense | 59,280 | 63,310 | 85,340 |
| Total | 1,196,170 | 1,232,260 | 1,983,440 |
| Income (loss) before taxes | 55,330 | 1,490 | 59,730 |
| Provision (credit) for income taxes | 21,670 | -2,290 | 24,320 |
| Net income | $33,660 | $3,780 | $35,410 |
