Answer to Question #266543 in Finance for Jabs

Question

 

2014

2015

2.1.1  Gross Profit Margin (Gross profit percentage)

Gross profit margin = (Total

(3000000-2250000) x 100

       3000000             1

Sales-cost of sales) x 100

           Total Sales     1

(4000000-3000000) x 100

 4000000                   1

=25%

= 25%

2.1.2  Net Profit Percentage

  Net income/net profit

Net income x 100

112 000/350 000*100/1

112 000/ 390 000

=32%

=29%

2.1.3  Working Capital (Current) Ratio

Current assets/current liabilities

Current assets/current liabilities

550 000/250 000

530 000/ 430 000

=2.2%

=1.2

2.1.4  Debt to Equity Ratio

Total assets/shareholders’ equity

Total assets/shareholders’ equity

1350 000/ 850 0000

1710 000/950 000

=1.58

=1.8

2.1.5  Rate of return on Total Capital (after tax)

Net income+ equity

Net income+ equity-dividends

112 000-5000/ 850 000

112 000+950 000=1062 000

12.

 

=12.58

12.1

2.1.6    Yield on Shareholder’s Interest

Answer 1

Yield on Shareholder’s Interest = $\frac{Cash\ Dividends+Net\ Share\ Repurchases+Net\ Debt\ Paydown}{Market\ Capitalization}$

where

Cash Dividends are the amount of dividends declared and paid by the company,

Net Debt Paydown is the difference between the amount of debt paid down and the amount of debt issued,

Net Share Repurchases is the difference between the dollar amount of share repurchases and the dollar amount of share issuances,

Market Capitalization is the value that the company trades at on the stock market