Principles of Corporate Finance_ 12th Edition

750 Part Nine Financial Planning and Working Capital Management

bre44380_ch28_732-758.indd 750 10/06/15 09:49 AM

Food

Beverage &

Tobacco

Clothing

Paper

Chemicals

Drugs

Machinery

Computers &

Electronics

Electrical

Autos

Retail

Telecom.

Professional & Technical

Services

ROA (%)

7.05

10.79

11.11

6.57

7.60

7.67

8.18

10.04

6.97

6.27

7.41

5.36

4.92

ROE (%)

14.67

23.51

19.31

15.79

16.02

15.60

18.31

16.68

11.90

18.19

16.38

16.28

10.05

Asset turnover

1.16

0.46

1.16

0.95

0.49

0.36

0.79

0.50

0.51

1.27

2.12

0.51

0.71

Operating profit margin (%)

6.09

23.68

9.56

6.90

15.55

21.56

10.32

20.16

13.73

4.92

3.49

10.53

6.88

Receivables turnover

12.96

14.45

9.99

9.46

7.49

7.42

7.48

10.58

7.85

14.59

45.51

10.60

5.74

Inventory turnover

9.22

7.45

5.54

9.02

6.98

6.34

5.53

18.57

5.67

15.01

9.47

64.51

41.33

Long-term debt ratio

0.38

0.43

0.28

0.56

0.40

0.39

0.30

0.25

0.19

0.30

0.37

0.62

0.38

Times interest earned

4.81

3.75

6.74

2.90

3.86

3.49

6.64

5.53

5.14

4.79

7.36

3.75

2.49

Current ratio

1.63

0.98

2.44

1.50

1.21

1.22

1.51

1.57

1.17

1.18

1.27

0.94

1.25

Quick ratio

0.73

0.41

1.03

0.74

0.61

0.65

0.73

0.97

0.54

0.68

0.40

0.73

0.88

Payout ratio

0.32

0.57

0.40

0.55

0.55

0.53

0.30

0.33

0.56

0.33

0.34

0.50

0.47

❱

TABLE 28.8

Selected financial ratios for U.S. companies, June 2014.

Source:

U.S. Department of Commerce, “Quarterly Financial Report for Manufacturing, Mining and Trade Corporations,” September 2014.

Food

Beverage & Tobacco

Clothing

Paper

Chemicals

Drugs

Machinery

Computers & Electronics

Electrical

Autos

Retail

Telecom.

Professional & Technical

Services

Sales

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Costs

91.4

77.5

89.7

90.1

84.6

81.9

88.3

85.9

89.5

94.1

93.3

69.0

92.3

Depreciation

2.0

2.8

2.0

4.0

3.1

2.7

2.5

3.4

2.0

1.8

1.9

14.0

2.5

EBIT

6.6

19.7

8.3

6.0

12.3

15.4

9.3

10.6

8.5

4.1

4.8

17.1

5.1

Interest

1.4

5.3

1.2

2.1

3.2

4.4

1.4

1.9

1.6

0.9

0.6

4.6

2.1

Other income

1.2

10.6

4.1

2.6

7.4

10.2

3.7

14.6

7.3

1.8

0.6

−0.5

4.1

Pretax income

6.5

25.1

11.1

6.5

16.5

21.2

11.5

23.3

14.1

5.1

4.7

12.0

7.2

Ta x

1.3

4.9

2.3

1.0

3.0

2.5

2.1

4.4

1.5

0.7

1.6

4.5

1.6

Net income

5.2

20.3

8.8

5.6

13.5

18.7

9.4

18.9

12.7

4.4

3.1

7.6

5.5

❱

TABLE 28.7

Aggregate common-size income statements for U.S. companies, September 2013 to June 2014. Entries are expressed as a

percentage of sales.Note:

Some columns do not add up because of rounding.

Source:

U.S. Department of Commerce, “Quarterly Financial Report for Manufacturing, Mining and Trade Corporations,” September 2014.