Financial Ratio Analysis

LIQUIDITY RATIO
2006 ($ Millions) 2005 ($ Millions)
Current Ratio
Current Assets 48,264 43,334
Current Liabilities 35,850 31,460
1.35 times 1.38 times
Quick Ratio
Current Assets - Inventory 48264 -7750 43334-6887
Current Liabities 35,850 31,460
1.13 times 1.16 times
Cash Ratio
Cash 16,400 13,911
Currrent Liabities 35,850 31,460
0.46 times 0.44 times
LONG TERM SOLVENCY RATIO

Total debt ratio

Total Assets - Total Equity 81981-38144 77317-37176
Total Assets 81,981 77,317
0.53 times 0.52 times
Debt-equity ratio
Total debt 43,837 40,141
Total equity 38,144 37,176
1.15 times 1.08 times
Equity Multipiler
Total Assets 81,981 77,317
Total Equity 38,144 37,176
2.15 times 2.08 times
Times Interest Earned Ratio
EBIT 7,191 3,543
Interest 606 189
11.87 times 18.75 times
Cash Coverage Ratio
EBIT + Depreciation 7191+
Interest 606

ASSET TURNOVER RATIO

Inventory turnover
Cost of goods sold 85,098 83,233
Inventory 7,750 6,877
10.98 times 12.10 times
Day's sales in inventory
365 days 365 days 365 days
 Inventory turnover 10.98 times 12.10 times
33 days 30 days
2006 ($ Millions) 2005 ($ Millions)
ASSET TURNOVER RATIO

Receivable turnover
Sales 91,658 86,696
Accounts receivable 10,873 9,903
8.43 times 8.75 times
Day's sales in receivable
365 days 365 days 365 days
Receivable turnover 8.43 times 8.75 times
43 days 42 days
Total Asset turnover
Sales 91,658 86,696
Total Asset 81,981 77,317
1.12 times 1.12 times
Capital Inventory
Total assets 81,981 77,317
Sales 91,658 86,696
0.89 times 0.89 times
PROFITABILITY RATIO

Profit margin
Net Income 6,198 2,398
Sales 91,658 86,696
7% 3%
Return on assets (ROA)
Net income 6,198 2,398
Total assets 81,981 77,317
8% 3%
Return on equity
Net income 6,198 2,398
Total equity 38,144 37,176
16% 6%
MARKET VALUE RATIOS

Price earnings ratio

Price per share
Earnings per share

Market to book ratio

Market value per share
Book value per share