- •Exhibit 1. Screening Ratios
- •Exhibit 2. Growth Ratios, y-t-y percentage changes
- •Exhibit 3. Financial Analysis (1/2)
- •Exhibit 4. Financial Ratio Analysis (2/2)
- •Exhibit 5. Calculation of Additional Fund Needed
- •Exhibit 6. Price Performance
- •Exhibit 7. Calculation of Altman's z-score model
- •Exhibit 8. Calculation Recovery Solvency Ratio
- •Exhibit 9. Computation of Future Cash Flow (1/3)
- •Exhibit 10. Computation of Future Cash Flow (2/3)
- •Exhibit 11. Computation of Future Cash Flow (3/3)
- •Exhibit 12. Forecast of Adjusted Future Cash Flow
Exhibit 4. Financial Ratio Analysis (2/2)
|
1980 |
1981 |
1982 |
1983 |
1984 |
1985 |
1986 |
1987 |
8 Yr. AVG |
Asset Management |
|||||||||
Average Collection Period (days) |
30,843 |
43,538 |
77,096 |
96,694 |
97,372 |
47,184 |
117,726 |
142,303 |
81,595 |
Average Payment Period (days) |
17,228 |
39,220 |
46,047 |
49,800 |
40,679 |
16,642 |
37,694 |
53,902 |
37,652 |
Total Assets Turnover |
2,056 |
1,791 |
1,785 |
1,249 |
1,992 |
1,952 |
0,847 |
0,942 |
1,577 |
Fixed Assets Turnover |
7,753 |
7,333 |
14,603 |
8,468 |
12,184 |
8,441 |
2,530 |
2,513 |
7,978 |
Current Assets Turnover |
2,799 |
2,370 |
2,034 |
1,465 |
2,381 |
2,539 |
1,272 |
1,507 |
2,046 |
Debt Management |
|||||||||
LTD (in thousands) |
18 543 |
18 269 |
20 208 |
30 154 |
33 681 |
27 454 |
26 708 |
19 608 |
24 328,125 |
LTD as a % of Total Liabilities |
46,32% |
35,18% |
10,46% |
7,77% |
8,90% |
9,30% |
4,46% |
3,16% |
15,69% |
LT Debt-to-Assets |
23,41% |
18,38% |
7,07% |
6,31% |
8,66% |
6,91% |
4,52% |
3,66% |
9,86% |
Total Liabilities-to-Equity |
102,17% |
109,40% |
208,53% |
434,04% |
3604,09% |
288,41% |
-7816,47% |
-735,52% |
-475,67% |
Total Liabilities-to-Assets |
50,54% |
52,24% |
67,59% |
81,27% |
97,30% |
74,25% |
101,30% |
115,74% |
80,03% |
TIE |
6,291 |
3,012 |
8,803 |
-1,268 |
-2,276 |
3,511 |
-2,752 |
-1,769 |
1,694 |
Du-Pont ROE |
|||||||||
Net Profit Margin |
8,00% |
4,33% |
8,80% |
-1,25% |
-10,30% |
8,28% |
-22,22% |
-20,88% |
-0,032 |
Total Assets Turnover |
2,056 |
1,791 |
1,785 |
1,249 |
1,992 |
1,952 |
0,847 |
0,942 |
1,577 |
Equity Multiplier |
2,022 |
2,094 |
3,085 |
5,340 |
37,041 |
3,884 |
-77,165 |
-6,355 |
-3,757 |
ROE |
8,14% |
3,70% |
5,09% |
-0,29% |
-0,55% |
4,16% |
0,24% |
3,10% |
2,95% |
The Du-Pont ROE provides a snapshot of perhaps the most important parts of the ratio analysis that have been discussed thus far. It demonstrates that Coleco has been less effective from year to year in improving its profit margin, total asset turnover, equity multiplier, and return on equity on a percentage growth basis. Meanwhile, Coleco has decreased in each of these categories – a trend that couldn’t allow Coleco to go on with the business in the hope that one or more of its product would do well.
Taking into account that there’s no exciting new toy introduction and prospects for increasing the company’s sales based on its current product line are limited, the additional fund needed is evaluated about $74 million.