Scitronics
Corporate Finance: SciTronics
COMPONENT PERCENTAGES INCOME STATEMENT (each item is expressed as a percentage of net sales revenue)
During the four-year period ended December 31, 2008, SciTronics’ managed to improve its earnings (from 3% to 6%) thanks to a decrease in operating expenses (from 64% to 59%) and constant cost of goods (30%).
SALES GROWTH
During the four-year period ended December 31, 2008, SciTronics’ sales grew at a 20.69 % compound rate. There were no acquisition or divestitures.
PROFITABILITY 1. SciTronics’ profit as a percentage of sales in 2008 was 5.7%. 2. This represented a 168.7% increase from 3.4% in 2005. 3. SciTronics had a total of $75000 of capital at year-end 2008 and earned, before interest but after taxes (EBIAT), $15166.66 in 2008. Its return on capital was 20.2 % in 2008, which represented an increase from the 9.1% earned in 2005. 4. SciTronics had $75000 of owners’ equity and earned $14000 after taxes in 2008. Its return on equity was 18.7 %, which represented an improvement from the 8.2 % earned in 2005.
ACTIVITY 1. Total asset turnover for SciTronics in 2008 can be calculated by dividing $240000 into $159000. The turnover deteriorated from 1.6 times in 2005 to 1.5 times in 2008. 2. SciTronics had $66000 invested in accounts receivables at year-end 2008. Its average sales per day were $668.5 during 2008 and its average collection period was 98.7 days. This represented an improvement from the average collection period of 104.28 days in 2005. 3. SciTronics apparently needed $29000 of inventory at year-end 2008 to support its operations during 2008. Its activity during 2008 as measured by the cost of goods sold was $74000. It therefore had an inventory turnover of 2.6 times. This represented an improvement from 2.1 times in 2005. 4. SciTronics had net fixed assets of $18000 and sales of $244000 in 2008. Its fixed asset turnover ratio in 2008 was 13.6 times, a deterioration from 16.3
COMPONENT PERCENTAGES INCOME STATEMENT (each item is expressed as a percentage of net sales revenue)
During the four-year period ended December 31, 2008, SciTronics’ managed to improve its earnings (from 3% to 6%) thanks to a decrease in operating expenses (from 64% to 59%) and constant cost of goods (30%).
SALES GROWTH
During the four-year period ended December 31, 2008, SciTronics’ sales grew at a 20.69 % compound rate. There were no acquisition or divestitures.
PROFITABILITY 1. SciTronics’ profit as a percentage of sales in 2008 was 5.7%. 2. This represented a 168.7% increase from 3.4% in 2005. 3. SciTronics had a total of $75000 of capital at year-end 2008 and earned, before interest but after taxes (EBIAT), $15166.66 in 2008. Its return on capital was 20.2 % in 2008, which represented an increase from the 9.1% earned in 2005. 4. SciTronics had $75000 of owners’ equity and earned $14000 after taxes in 2008. Its return on equity was 18.7 %, which represented an improvement from the 8.2 % earned in 2005.
ACTIVITY 1. Total asset turnover for SciTronics in 2008 can be calculated by dividing $240000 into $159000. The turnover deteriorated from 1.6 times in 2005 to 1.5 times in 2008. 2. SciTronics had $66000 invested in accounts receivables at year-end 2008. Its average sales per day were $668.5 during 2008 and its average collection period was 98.7 days. This represented an improvement from the average collection period of 104.28 days in 2005. 3. SciTronics apparently needed $29000 of inventory at year-end 2008 to support its operations during 2008. Its activity during 2008 as measured by the cost of goods sold was $74000. It therefore had an inventory turnover of 2.6 times. This represented an improvement from 2.1 times in 2005. 4. SciTronics had net fixed assets of $18000 and sales of $244000 in 2008. Its fixed asset turnover ratio in 2008 was 13.6 times, a deterioration from 16.3