Introduction to Corporate Finance

Ross et al.: Fundamentals
of Corporate Finance, Sixth
Edition, Alternate Edition

II. Financial Statements

and Long−Term Financial

Planning

3. Working with Financial
   Statements

© The McGraw−Hill^113

Companies, 2002

CHAPTER 3 Working with Financial Statements 81

TABLE 3.11

Retail—Furniture Stores SIC# 5712 (NAICS 33711, 337121, 337122)

Comparative Historical Data Current Data Sorted By Sales

Type of Statement

3.6 3.9 4.0 3.3 4.1 3.8 3.8 4.6 4.0

2.7 2.8 2.8 2.1 2.7 2.7 3.0 3.2 2.8

1.8 2.0 1.9 1.3 1.6 1.9 2.2 2.3 1.8

.5 .5 .5 .5 .5 .5 .5 .4 .6

(536) .9 (557) .8 (511) .8 (40) 1.1 (150) .9 (78) .9 (82) .8 (88) .6 (73) 1.0

1.5 1.3 1.2 2.3 1.5 1.1 1.1 1.0 1.5

2.1 2.0 2.0 4.9 2.9 2.3 1.6 1.5 .6

(301) 3.6 (288) 3.7 (297) 3.8 (32) 7.9 (97) 4.8 (48) 3.5 (46) 2.8 (57) 2.2 (17) 1.5

6.5 6.3 6.9 11.2 7.2 5.1 6.3 4.0 6.9

8723294M 13781185M 14827349M Net Sales ($) 33379M 319782M 313436M 666443M 1480420M 12013889M

4140881M 5596486M 6398099M Total Assets ($) 22534M 151249M 133560M 250141M 565461M 5275154M

% Officers’,

Directors’, Owners’

Comp/Sales

% Depr., Dep.,

Amort./Sales

Sales/

Total Assets

Selected Ratios (concluded)

M $ thousand; MM $ million.

© 2000 by RMA. All rights reserved. No part of this table may be reproduced or utilized in any form or by any means, electronic or

mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from RMA.

As we discussed in this chapter,ratios are an important tool for ex-

amining a company’s performance. Gathering the necessary financial state-

ments to calculate ratios can be tedious and time consuming. Fortunately,

many sites on the Web provide this information for free. One of the best is

http://www.marketguide.com. We went there, entered a ticker symbol (“BUD” for Anheuser-

Busch), and selected the “Comparison” link. Here is an abbreviated look at the results:

Most of the information is self-explanatory. Interest Coverage ratio is the same as

the Times Interest Earned ratio discussed in the text. The abbreviation MRQ refers to

results from the most recent quarterly financial statements, and TTM refers to results

covering the previous (“trailing”) 12 months. This site also provides a comparison to

the industry, business sector, and S&P 500 average for the ratios. Other ratios avail-

able on the site have five-year averages calculated. Have a look!

Work the Web