Submitted by: Submitted by mattwaf23
Views: 161
Words: 513
Pages: 3
Category: Business and Industry
Date Submitted: 04/09/2013 06:45 AM
1. Gross Profit Margin
=Revenues- cost of goods sold / Revenues
2009= 10,382.8-3,888.3/10,382.8= .625= 62.5%
2008=10,690.1-3,949.1/10,690.1= .63= 63%
2. Operating profit margin
=Operating income/revenues
2009=1,018.2/10,382.8=.098
2008=1,339.3/10,690.1=.125
3. Net profit margin
=profits after taxes/revenues
2009=628.2/10,382.8=.06=6%
2008=875.6/10,690.1=.08=8%
4. Times interest earned coverage
=Operating income/interest expenses
2009=1,018.2/104.8=9.72
2008=1,339.3/100.4=13.34
5. Return on stockholder’s equity
=Profits after taxes/total stockholder’s equity
2009=628.2/1,312.6=.479
2008=875.6/712.3=1.23
6. Return on assets ???
=Profits after taxes + interest/total assets
2009=628.2 + /6,832.7
2009=875.6 + /6,074
7. Debt to equity ratio
=total debt/ total stockholders’ equity
2009=5,520.1/1,312.6=4.21
2008=5,361.7/712.3=7.53
8. Days of inventory
=inventory/(C.O.G.S/365)
2009= 1067.5/(3888.3/365)=100.23
2008= 1007.9/(3949.1/365)= 93.15
9. Inventory turnover ratio
=C.O.G.S/inventory
2009=3888.3/1067.5=3.64
2008=3949.1/1007.9=3.92
10. Average collection period???
=AR/Avg daily sales
2009=779.7/
2008=687.8/
Looking at these numbers Avon performance has weaken going from 2008 to 2009.
1. Gross Profit Margin
=Revenues- cost of goods sold / Revenues
2009= 10,382.8-3,888.3/10,382.8= .625= 62.5%
2008=10,690.1-3,949.1/10,690.1= .63= 63%
2. Operating profit margin
=Operating income/revenues
2009=1,018.2/10,382.8=.098
2008=1,339.3/10,690.1=.125
3. Net profit margin
=profits after taxes/revenues
2009=628.2/10,382.8=.06=6%
2008=875.6/10,690.1=.08=8%
4. Times interest earned coverage
=Operating income/interest expenses
2009=1,018.2/104.8=9.72
2008=1,339.3/100.4=13.34
5. Return on stockholder’s equity
=Profits after taxes/total stockholder’s equity
2009=628.2/1,312.6=.479
2008=875.6/712.3=1.23
6. Return on assets ???
=Profits after taxes + interest/total assets
2009=628.2 + /6,832.7
2009=875.6 + /6,074
7....