MANAJEMEN KEUANGAN

KELOMPOK 2

NAMA ANGGOTA:
1. REXY WANGSA PUTRI (1811011005)
2. MUHAMMAD FACHRI RAMADHAN (1811011009)
3. ALFINA DAMAYANTI (181101163)
 Case 2

a. Calculate the firm’s 2003 financial ratios, and then fill in the
preceding table.
b. Analyze the firm’s current financial position from both a
cross-sectional and a time-series viewpoint. Break your
analysis into evaluation of the firm’s liquidity, activity, debt,
profitability, and market.
c. Summarize the firm’s overall financial position in the basis
of your findings in part b.
A.
Martin Manufacturing Company
Historical Ratio

Aktual Aktual Actual Industry Average

Ratio
2001 2002 2003 2003

Current Ratio 1.7 1,8 2,5 1,5

Quick Ratio 1 0.9 1,3 1,2

Inventory Turnover (times) 5.2 5 5,3 10,2

Average collection period 50 days 55 days 58,0 46 days

Total assets turnover (times) 1,5 1,5 1,6 2,0

Debt Ratio 45,8% 54,3% 57,0 24,5%

Times Interest earned ratio 2.2 1.9 1,6 2,5

Gross profit margin 27,5% 28.00% 27,0% 26,0%

Net profit margin 1,1% 1.00% 0,7% 1,2%

Return on total assets (ROA) 1,7% 1,5% 1,1% 2,4%

Return on total equity (ROE) 3,1% 3,3% 2,5 3,2%

Price/earning (P/E) ratio 33,5 38,7 38,7 43,4

Market/book (M/B) ratio 1 1.1 0,9 1,2

B.
A. Liquidity Ratios
Current ratio = Current assets ÷ Current liabilities
= 1.531.181 ÷ 616.000 = 2,4857 = 2,5x

Quick Ratio = Current assets - Inventory

Current Liabilities
= 1.531.181 – 700.625 = 1,348x
616,.000.

B. Activity Ratio
Inventory turnover = COGS
inventory
= 3.704.000 = 5,2867 = 5,3x
700.625

Average Age collection period 2003 = Account Receivable =805.556 = 57,9 = 58 days
Annual sales 5.075.000
365 365
Total Assets turnover = Sales ÷ Total assets
= 5.075.000 ÷ 3.125.000
= 1,6x
C. Debt Ratio
Debt Ratio 2003 = Total liabilities ÷ Total assets
= 1.781.250 ÷ 3.125.000
= 0,57 = 57%

Times interest earned ratio = Net profit before taxes ÷ taxes

= 60.000 ÷ 24.000
= 2,5

D. Pofitability
Gross profit margin = Sales – COGS
Sales
= 5.075.000 – 3.704.000 = 0,27 = 27%
5.075.000
Net profit margin = Earnings available for common stockholders ÷ Sales
= 33.000 ÷ 5.075.000 = 0,0065= 0,65%= 0,7%
Return on total assets (ROA) = Earnings available for common stockholders ÷ Total Assets
= 33.000 ÷ 3.125.000= 0,0105= 1,05%
Return on total equity (ROE) = Earnings available for common stockholders ÷ common stock equity
= 33.000 ÷ 400.000= 0,0825 = 8,25%

E. Market Ratio
Price earnings (P/E) ratio = Market price per share of common stock ÷ earnings per share
= 11,38 ÷ 0,33
= 34,48
= 34,5

Market book (M/B) ratio = Market price per share of common stock ÷ Book value per share of common stock
= 11,38 ÷ 4
= 2,845
 C.
Martin Manufacturing Company

Historical Ratio

Aktual Aktual Actual Industry Average Cross Section Time Series Overall
Ratio

2001 2002 2003 2003

Current Ratio 1.7 1,8 2,5 1,5

Quick Ratio 1 0.9 1,3 1,2

Inventory Turnover (times) 5.2 5 5,3 10,2

Average collection period 50 days 55 days 58,0 46 days

Total assets turnover (times) 1,5 1,5 1,6 2,0

Debt Ratio 45,8% 54,3% 57,0 24,5%

Times Interest earned ratio 2.2 1.9 1,6 2,5

Gross profit margin 27,5% 28.00% 27,0% 26,0%

Net profit margin 1,1% 1.00% 0,7% 1,2%

Return on total assets (ROA) 1,7% 1,5% 1,1% 2,4%

Return on total equity (ROE) 3,1% 3,3% 2,5 3,2%

Price/earning (P/E) ratio 33,5 38,7 38,7 43,4

Market/book (M/B) ratio 1 1.1 0,9 1,2

 Mc Donald Printing, Inc

Year End December 31, 2003

Sales $40,000,000

Gross profit margin 80% 32,000,000

Operating profit margin 35% 14,000,000

Net profit margin
8% 3,200,000
Return on total assets
16% 6,400,000
Return on common equity
20% 8,000,000
Total asset turnover
2
Average collection period 62.2 days

Calculate values for the following:

a. Gross Profit
b. Cost of good sold
c. Operating profits
d. Operating expenses
e. Earnings available for common
stockholders
f. Total assets
g. Total common stock equity
h. Accounts receivable
a. Gross profit margin = Gross c. Operating profit margin = Operating Profit
Sales Sales

80% = Gross Profit 35% = Operating Profit

40,000,000 40,000,000

3.5 = Operating Profit

0.8 = Gross Profit
40,000,000
40,000,000
OP = 3.5 x 40,000,000
GP =0.8 x 40,000,000
= 14.000.000
=32.000.000

b. COGS = Sales - Gross Profit d. GP - OE = OP

32,000,000 - OE = 14,000,000
= 40,000,000-32,000.000 32,000,000 - 14,000,000 = OE
OE = 18,000,000
= 8,000,000
 Earnings available for
e. Net Profit Margin = common stackholder
Sales

8% = X .
40,000,000

0.8 = X .
40,000,000

GP = 0.8 x 40,000,000
= 3,200,000

f. Total asset turnover = sales ___

total asset
.
2= 40,000,000
Total Asset

Total Asset = 40,000,000 =20,000,000

2
g. Net Profit Margin = Earnings available for common stackholder
ROE
=3,200,000
0.20
=16,000,000

h. Account Receivable =Average collection period x sales .

360/365 days

=62,2 days x 40,000,000

365/360
=62,2 days x 109.589
=679.4518
=679.4
THANK YOU^^