Bus Policy

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....