Page 60 - Financial Statement Analysis

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Chapter One | Overview of Financial Statement Analysis 37

Financial Statement Ratios for Colgate (concluded)

Return on Investment
Net income interest expense (1 Tax rate)
Return on assets
Average total assets
$1,353.4 $158.7(1 0.35)
16.51%
($9,138.0 $8,507.1)N2
Net income $1,353.4
Return on common equity 98.04%
Average shareholders’ equity ($1,410.9 $1,350.1)N2
Operating Performance

Sales Cost of sales $12,237.7 $5,536.1
Gross profit margin 54.76%
Sales $12,237.7
Income from operations $2,160.5
Operating profit margin (pretax) 17.65%
Sales $12,237.7
Net income $1,353.4
Net profit margin 11.01%
Sales $12,237.7
Asset Utilization
Sales $12,237.7
Cash turnover 29.48
Average cash and equivalents ($489.5 $340.7)N2
Sales $12,237.7
Accounts receivable turnover 8.64
Average accounts receivable ($1,523.2 $1,309.4)N2
Cost of sales $5,536.1
Inventory turnover 5.94
Average inventory ($1,008.4 $855.8)N2
Sales $12,237.7
Working capital turnover 158.93
Average working capital [($3,301.0 $3,469.1) ($2,757.1 $2,743.0)]N2
Sales $12,237.7
PPE turnover 4.67
Average PPE ($2,696.1 $2,544.1)N2
Sales $12,237.7
Total asset turnover 1.39
Average total assets ($9,138.0 $8,507.1)N2
Market Measures
Market price per share $65.24
Price-to-earnings 25.39
Earnings per share $2.57
Earnings per share $2.57
Earnings yield 3.94%
Market price per share $65.24
Cash dividends per share $1.25
Dividend yield 1.92%
Market price per share $65.24
Cash dividends per share $1.25
Dividend payout rate 48.64%
Earnings per share $2.57
Market price per share $65.24
Price-to-book 23.22
Book value per share $2.81