Financial Statement Analysis for Campbell Soup Company

This report explains about the equity valuation and the financial statement analysis of Campbell Soup Company. The report evaluates the equity valuation of the company using two techniques, DCF and Earnings growth analysis. It also evaluates the credit risk of the company using financial statement ratios. The report concludes with a recommendation for investors and the management of the company.

Running Head: Financial statement analysis
1
Project Report; financial Statement analysis

Financial statement analysis
2
Contents
Introduction...........................................................................................................................................3
Company overview................................................................................................................................3
Part 1: Using financial statement for equity valuation...........................................................................3
Earnings growth analysis...................................................................................................................3
Discounted cash flow.........................................................................................................................5
Recommendation...............................................................................................................................7
Conclusion.........................................................................................................................................7
Part 2: Using financial statement for credit risk analysis.......................................................................7
Financial statement ratios:................................................................................................................7
Credit quality of the firm...................................................................................................................9
Recommendation and Conclusion...................................................................................................10
References...........................................................................................................................................11
Appendix.............................................................................................................................................13

Financial statement analysis
3
Introduction:
Identifying the total worth of an organization contain the more reviewing revenues
and assets figures. In finance, valuation is a procedure which is conducted by the companies
and the related parties of the company such as the investors, creditors, bank, stockholders,
shareholders, debtors etc of the company to evaluate the fair market value of an asset. Equity
valuation therefore explains about the process of identifying the fair value of equity securities
(Chandra, 2011). Equity valuation makes it easy for an organization and the other parties to
identify the worth of the comapny and the market position of the company. It offers a good
base to the stakeholders of the company to make better decision about the performance of the
company.
Financial statement analysis is a process which is done by the companies and the
related parties of the company such as the investors, creditors, bank, stockholders,
shareholders, debtors etc of the company to reach over different conclusion. The main motto
of financial statement analysis is to identify the worth of the company, total profit of the
comapny and turnover of the company, changes into the final structure of the company from
last year, financial position of the company, cash flow position of the comapny etc. the
financial stataement analysis could be done by the analyst and the managers through
numerous ways such as trend analysis, capital asset pricing model, vertical analysis, ratio
analysis etc (Madhura, 2011).
This report explains about the equity valuation and the financial statement analysis of
Campbell Soup Company. For identifying the equity valuation and the financial statement
evaluation of the company, final statement of the company of 2014 to 2016 has been
evaluated. The study explains about the performance of the company on various bases.
Company overview:
Campbell Soup Company is a food company which is situated in American market.
The company is a global food company which has registered in NYSE. The headquarter of
the company is in Camden, N.J. the organization prepares and produces the high quality
meals, sups, snack, beverages, packaged fresh food etc. It is inspired and driven by the main
goal of the company which is “Real food that matters for the life movement.” The customers
and the clients of the company are loyal to the company due to flavourful, authentic and
readily available food of the company (Home, 2018). The financial position and performance
of the company has been identified and it has been evaluated that the performance of the
company has been better from last few years. The company is performing well in the market
and it has diversified its market.
Part 1: Using financial statement for equity valuation:
Equity valuation explains about the process of identifying the fair value of equity
securities. Equity valuation makes it easy for an organization and the other parties to identify
the worth of the comapny and the market position of the company. It offers a good base to the
stakeholders of the company to make better decision about the performance of the company.
There are various ways on the basis of that equity valuation could be done. In the report, two
equity valuation techniques have been used to identify the worth of the company which are
DCF and Earnings growth analysis.
Earnings growth analysis:

Financial statement analysis
4
Earnings growth analysis is a way to identify the total worth of equity of a company.
Equity valuation explains about the process of identifying the fair value of equity securities.
Equity valuation is a way for an organization and the other parties to identify the worth of the
comapny and the market position of the company. It offers a good base to the stakeholders of
the company to make better decision about the performance of the company. In earnings
growth analysis, historical earnings of an organization is collected and evaluated by the
company to identify the future worth of the equity of the company (Chandra, 2011).
Earnings growth analysis model is one of the most used methods to identify and
measure the equity valuation of a company. The various financial analysts expressed about
the method and said that it is one of the reliable methods to measure the performance of the
company. Earnings growth analysis method relies on the price of the stock, earnings per
share, dividend per share, P/E ratio etc. of a company which are considered to be a reliable
value and it also eliminates the subjective accounting policies. Though, Earnings growth
analysis is significantly influenced by non economical factors as well as the market
conditions (Décamps et al, 2011). It is particularly used by the analyst when there is less
confidence on the cash flow system of the company. Though, it involves one of the sensitive
assumptions and it involves predicting the future performance of the company.
In this process, earnings per share of the organization, dividend per share, roe, Price
earnings ratio, price of the company in last few years are collected and they are evaluated to
identify the trend in the market and the company. This process makes it easier for the analyst
and the company to evaluate and identify the reasons due to which the changes have taken
place into the performance of the company in last few years (Brigham and Daves, 2012).
Earnings growth model evaluates the total growth % in the company and on the basis of it; it
evaluates the equity price per share and the total worth of the company.
The earnings growth analysis table of the company is as follows:
Price P/E ratio
Year EPS DPS BVPS High Low High Low ROE
Payout
ratio
2011 1.08 0.96 1.00 39.87 34.58 36.92 32.02 108% 89%
2012 1.21 0.87 1.00 42.54 39.45 35.16 32.60 121% 72%
2013 1.35 1.085 1.00 44.68 42.85 33.10 31.74 135% 80%
2013 1.46 1.169 1.00 47.52 44.1 32.55 30.21 146% 80%
2014 2.61 1.245 1.00 46.23 41.51 17.71 15.90 261% 48%
25% 7% 0% 4% 5% 83% 84% 25% -14%
5 year average:
Return on equity 0.25
Payout ratio
-
0.14

Financial statement analysis
5
P-E ratio high 0.83
P-E ratio low 0.84
P/E ratio 0.81
Sustainable
growth 25%
Calculation of EPS after 2
years
EPS DPS
2015 3.254 1.33
2016 4.057 1.42
Equity Valuation
EPS after 2 years * P/E
ratio
4.057*8.1
32.86
In the report, earnings per share of the organization, dividend per share, ROE, Price
earnings ratio, price of the company in last 5 years are collected and they are evaluated to
identify the trend in the market and the company (Penman and Reggiani, 2013). This process
evaluates that the equity value of the company would be $ 32.86 and the total worth of the
company would be $ 10318.57 million.
Discounted cash flow:
Discounted cash flow is a way to identify the total worth of equity of a company.
Discounted cash flow explains about the process of identifying the fair value of equity
securities. Equity valuation is a way for an organization and the other parties to identify the
worth of the comapny and the market position of the company (Titman and Martin, 2014). It
offers a good base to the stakeholders of the company to make better decision about the
performance of the company. In discounted cash flow, free cash flow of an organization is
collected and evaluated by the company to identify the future worth of the equity of the
company.
Discounted cash flow is one of the closest estimates to identify and measure the
equity valuation of a company. Analyst found it one of the most sound valuation methods.
Discounted cash flow method relies on the free cash flows of a company which are
considered to be a reliable value and it also eliminates the subjective accounting policies.
Discounted cash flow is not significantly influenced by non economical factors as well as the
market conditions (Brown, 2012). It is particularly used by the analyst when there is huge
confidence on the cash flow system of the company. Though, it is one of the sensitive
assumptions and it involves predicting the future performance of the company.

Financial statement analysis
6
In this process, free cash flow of the company of last few years is collected and they
are evaluated to identify the trend in the market and the company. This process makes it
easier for the analyst and the company to evaluate and identify the reasons due to which the
changes have taken place into the performance of the company in last few years. Discounted
cash flow evaluates the total growth % in the company and on the basis of it; it evaluates the
equity price per share and the total worth of the company (Brooks, 2015).
The analysis on equity according to the discounted cash flow table of the company is as
follows:
CAMPBELL SOUP CO: 2-Stage DCF
Initial Cash Flow 959
Years 1-5
FCF Growth Rate 15.67%
Discount Rate 10%
Terminal Growth Rate 2%
Shares Outstanding (Crore) 316
Net Debt Level 2,244
Year FCF Growth
Present
Value
1 1,109 15.67%
1,0
08
2 1,283 15.67%
1,0
60
Final Calculations
Terminal Year 1,309
PV of Year 1-10 Cash Flows 2,069
Terminal Value 13,520
Total PV of Cash Flows 15,589
Number of Shares 316
DCF Value / Share (Rs) 42
(Koller, Goedhart and Wessels, 2010)
The above tables of discounted cash flow briefs that the In the report, earnings per
share of the organization, dividend per share, ROE, Price earnings ratio, price of the company
in last 5 years are collected and they are evaluated to identify the trend in the market and the
company. This process evaluates that the equity value of the company would be $ 32.86 and
the total worth of the company would be $ 10318.57 million (Annual Report, 2014).

Financial statement analysis
7
Recommendation:
To recommend, the stock price of the company is quite higher than the intrinsic
values of the company. The current stock price of the company is USD 46.23 whereas the
intrinsic value of the company after 2 years would be $ 32.86 according to earnings growth
analysis and $ 42 according to the dividend discount model of the company. It explains that
the investment position of the company is not at all good. The stock price of the company
would be lower in near future and thus it is recommended to the investors to not to invest into
the stock price of the company. Further, it explains about the deductions in the performance if
the company in next few years.
Conclusion:
To conclude, investors should not invest into the stock price of the company. Further,
the management of the company is also required to look into the performance of the company
and make few changes into the performance of the company accordingly.
Part 2: Using financial statement for credit risk analysis:
Financial statement analysis explains about the process of identifying the fair value of
the company. The analysis makes it easy for an organization and the other parties to identify
the worth of the comapny and the risk position of the company. It offers a good base to the
stakeholders of the company to make better decision about the performance of the company.
There are various ways on the basis of that financial statement of the company could be
evaluated and risk of the stock could be measured. In the report, ratio analysis study has been
done to evaluate the credit risk of the company.
Financial statement ratios:
Financial statement ratios have been evaluated to identify the performance of the
company. The ratio analysis of the company is as follows:
Profitability ratio:
Profitability ratios explain about a position where the profit generation capability of a
firm could be identified. It briefs that whether the profitability position of the company is
good or not. The profitability position of Campbell Soup Company has been evaluated and it
has been found that the net profitability level of the company is 7.007% in 2016 which has
been lower from 2015 and 2014’s profit capability (Ahrendsen and Katchova, 2012). The net
profit ratio has been chosen for identifying the profitability ratio as it is one of the most used
ratio and the ratio is based on the reliable information as well as it also takes the concern of
entire profit level of the company.
It explains that the total profit of the company against the sales revenue of the
company has been lower from last year due to high COGS and the operating expenses of the
company. It briefs that the current position of the company is not at all good. It explains
about the reduction in the profitability level of the company as well as the performance of the
company. It is required for the company to manage the high revenue with less cost of goods
sold and operating expenses (Higgins, 2012). The past year data briefs that the operating
expenses and non operating expenses of the company was lower from current year.
Additionally, it briefs that the return on assets, net profit, gross profit, cash flow to sales ratio

Financial statement analysis
8
etc of the company has also been lower and explains that the performance of the company has
been lower from last year.
Return on assets of the company is 7.07% in 2016 which has been lower from 46.14%
in 2015 (Annual Report, 2016). It explains that the position of the company in terms of net
assets have also been lower. Further, return on equity also explains about the decrement in
the total return of the equity of the company (Vogel, 2014). In addition, gross profit margin
and cash flow to sales ratios have also been lowered. The calculations and data brief that the
profitability level of the company have been lower and thus the investment position has been
riskier.
Short term liquidity ratio:
Short term liquidity ratios explain about a position where the debt payment capability
of a firm could be identified. It briefs that whether the liquidity position of the company is
good or not. The liquidity position of Campbell Soup Company has been evaluated and it has
been found that the liquidity level (current ratio) of the company is 0.75 in 2016 which is
quite similar from 2015 and 2014’s liquidity capability. The current ratio has been chosen for
identifying the liquidity ratio as it is one of the most used ratio and the ratio is based on the
reliable information as well as it also takes the concern of other competitors in the market
(Gibson, 2011).
It explains that the current sources of the company against the current debt of the
company are lower from last year. Though, it briefs that the current position of the company
is not at all good. It explains about the reduction in the capability of the company to pay the
short term debts of the company. It is required for the company to manage the current
resources at a good proportion with the debts of the company (Gertler and Kiyotaki, 2010).
The past year data briefs that the level of sources has been enhanced by the company and still
few changes are required in the company. Additionally, it briefs that the quick assets of the
company has also been lower and explains that the performance of the company has been
lower from last year.
Quick liquidity ratio of the company is 0.38 in 2016 which has been lower from 0.39
in 2015. It explains that the position of the company in terms of short term debt payment have
also been lower (Annual Report, 2016). The calculations and data brief that the liquidity level
of the company have been lower and thus the investment position has been riskier.
Long term solvency ratio:
Solvency ratios are the key metric which is used by the companies to measure the
ability of an organization to pay its long term debt. Long term solvency ratios explain about a
position where the long term debt payment capability of a firm could be identified. It briefs
that whether the solvency position and long term debt payment position of the company is
good or not (Faccio, 2010). The solvency position of Campbell Soup Company has been
evaluated and it has been found that the solvency level of the company is 0.24 in 2016 which
has been reduced from 2015 and 2014’s solvency capability. The long term solvency ratio
has been chosen for identifying the solvency ratios as it is one of the reliable ratio which is
based on the structure and long term debts of the company.
It explains that the current log term sources of the company against the long term debt
of the company are lower from last year. Though, it briefs that the solvency position of the
company is not at all good. It explains about the reduction in the capability of the company to

Financial statement analysis
9
pay the long term debts of the company (Fridson and Alvarez, 2011). It is required for the
company to manage the long term resources at a good proportion with the long term debts of
the company. The past year data briefs that the level of sources has been reduced by the
company and thus few changes are required in the company. The calculations and data brief
that the solvency level of the company have been lower and thus the investment position has
been riskier.
Capital structure ratio:
Capital structure ratios are the key metric which is used by the companies to measure
the ability of an organization to manage its various sources which has been raised by the
company for various long term projects and the performance of the company. Capital
structure ratios explain about a position where the debt and equity level and fund
management capability of a firm could be identified (Brigham and Ehrhardt, 2013). It briefs
that whether the good proportion of debt and equity is managed by the company or not. The
capital structure position of Campbell Soup Company has been evaluated and it has been
found that the debt to equity level of the company is 1.675 in 2016 which has been reduced
from 2015 and 2014’s debt equity level capability. The debt to equity ratio has been chosen
for identifying the capital structure position as it is one of the most used ratio and the ratio is
based on the reliable information as well as it also takes the concern of entire structure level
of the company (Annual Report, 2014).
It explains that the debt level of the company is quite higher than the equity level due
to which the position of the company is quite riskier. It explains that the cost of the company
is quite lower but on the other hand, the risk of the company is higher. Though, it briefs that
the capital structure position of the company is not at all good. Further, the other capital
structure ratio also briefs that the changes are required to be done in the company for the
better performance of the company and the position of the company (Fiordelisi, Monferrà and
Sampagnaro, 2014). The calculations and data brief that the solvency level of the company
have been lower and thus the capital structure position has been riskier.
Credit quality of the firm:
Credit quality is crucial measurement to judge the investment quality of an
organization and it also evaluates the relevant factors related to the investment in an
organization. Credit quality is an important factor for the investors to evaluate the opportunity
in the organization. The credit quality of Campbell Soup Company has been evaluated and it
has been found that the credit quality of the firm is not satisfactory (Gopalan, Song and
Yerramilli, 2014). The credit quality of the company was quite better in 2014 but after 2014,
the riskier level of the company is continuously increasing and explains that the investment
position of the company is not good. The profitability level briefs about the lower
profitability ratio from last 2 years and brief that the position of the company has been lower.
On the other hand, the liquidity level of the company briefs that the short term debt payment
capacity of the company is not good (Cetorelli and Peretto, 2012). The level of debt of the
company is quite higher than the level of its current sources. Further, the solvency level of the
company briefs that long term debt payment capacity of the company is not good. The level
of debt of the company is quite higher than the level of its net profit and the assets. Lastly, the
capital structure ratio also briefs that the risk level of the company is quite higher and thus the
credit quality of the company is not good (Mittoo and Zhang, 2010). It is not a good option
for the purpose of investment.

Financial statement analysis
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Recommendation and Conclusion:
To conclude, the investment position of the company is not at all good and thus, it is
recommended to the investors to not to invest into the company for the long term as well as
for short term. It briefs that it is required for the investors to invest into the company which
credit rating is quite better.

Financial statement analysis
11
References:
Ahrendsen, B.L. and Katchova, A.L., 2012. Financial ratio analysis using ARMS
data. Agricultural Finance Review, 72(2), pp.262-272.
Annual Report. 2014. Campbell Soup Company. [Online]. Available at:
http://media.corporate-ir.net/media_files/IROL/88/88650/2014_Annual_Report.pdf
[Accessed as on 6th April 2018].
Annual Report. 2016. Campbell Soup Company. [Online]. Available at:
https://www.campbellsoupcompany.com/wp-content/uploads/sites/31/2016/10/
AnnualReport_CampbellSouPCompany_2016.pdf [Accessed as on 6th April 2018].
Brigham, E. and Daves, P., 2012. Intermediate financial management. Nelson Education.
Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management: Theory & practice.
Cengage Learning.
Brigham, E.F. and Houston, J.F., 2012. Fundamentals of financial management. Cengage
Learning.
Brooks, R., 2015. Financial management: core concepts. Pearson.
Brown, R., 2012. Analysis of investments & management of portfolios. Pearson Higher Ed.
Cetorelli, N. and Peretto, P.F., 2012. Credit quantity and credit quality: Bank competition and
capital accumulation. Journal of Economic Theory, 147(3), pp.967-998.
Chandra, P., 2011. Financial management. Tata McGraw-Hill Education.
Décamps, J.P., Mariotti, T., Rochet, J.C. and Villeneuve, S., 2011. Free cash flow, issuance
costs, and stock prices. The Journal of Finance, 66(5), pp.1501-1544.
Faccio, M., 2010. Differences between politically connected and nonconnected firms: A
cross‐country analysis. Financial management, 39(3), pp.905-928.
Fiordelisi, F., Monferrà, S. and Sampagnaro, G., 2014. Relationship lending and credit
quality. Journal of Financial Services Research, 46(3), pp.295-315.
Fridson, M.S. and Alvarez, F., 2011. Financial statement analysis: a practitioner's
guide (Vol. 597). John Wiley & Sons.
Gertler, M. and Kiyotaki, N., 2010. Financial intermediation and credit policy in business
cycle analysis. In Handbook of monetary economics (Vol. 3, pp. 547-599). Elsevier.
Gibson, C.H., 2011. Financial reporting and analysis. South-Western Cengage Learning.
Gopalan, R., Song, F. and Yerramilli, V., 2014. Debt maturity structure and credit
quality. Journal of Financial and Quantitative Analysis, 49(4), pp.817-842.
Higgins, R.C., 2012. Analysis for financial management. McGraw-Hill/Irwin.
Koller, T., Goedhart, M. and Wessels, D., 2010. Valuation: measuring and managing the
value of companies (Vol. 499). john Wiley and sons.

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Madura, J., 2011. International financial management. Cengage Learning.
Mittoo, U.R. and Zhang, Z., 2010. Bond market access, credit quality, and capital structure:
Canadian evidence. Financial Review, 45(3), pp.579-602.
Penman, S. and Reggiani, F., 2013. Returns to buying earnings and book value: Accounting
for growth and risk. Review of Accounting Studies, 18(4), pp.1021-1049.
Titman, S. and Martin, J.D., 2014. Valuation. Pearson Higher Ed.
Vogel, H.L., 2014. Entertainment industry economics: A guide for financial analysis.
Cambridge University Press.
Yahoo finance. 2018. Campbell Soup Company. [Online]. Available at:
https://finance.yahoo.com/quote/CPB?ltr=1 [Accessed as on 6th April 2018].
Yahoo finance. 2018. Campbell Soup Company. [Online]. Available at:
https://www.campbellsoupcompany.com/ [Accessed as on 6th April 2018].

Financial statement analysis
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Appendix:
CAMPBELL SOUP CO (CPB) CashFlowFlag INCOME STATEMENT
Fiscal year ends in July. USD in millions except per share
data.
2016-
07
2015-
07
2014-
07
Revenue 7961 8082 8268
Cost of revenue 5181 5277 5370
Gross profit 2780 2805 2898
Operating expenses
Research and development 124 113 121
Sales, General and administrative 1534 1471 1508
Restructuring, merger and acquisition 102
Other operating expenses 20 24 18
Total operating expenses 1678 1710 1647
Operating income 1102 1095 1251
Interest Expense 115 108 122
Other income (expense) -138 3 -56
Income before taxes 849 990 1073
Provision for income taxes 286 299 347
Net income from continuing operations 563 691 726
Net income from discontinuing ops 81
Other 11
Net income 563 691 818
Net income available to common shareholders 563 691 818
Earnings per share
Basic 1.82 2.21 2.61
Diluted 1.81 2.21 2.59
Weighted average shares outstanding
Basic 309 312 314
Diluted 311 313 316
EBITDA 1272 1401 1500
CAMPBELL SOUP CO (CPB) CashFlowFlag BALANCE SHEET
Fiscal year ends in July. USD in millions except per share
data.
2016-
07
2015-
07
2014-
07
Assets
Current assets
Cash
Cash and cash equivalents 296 253 232
Total cash 296 253 232
Receivables 626 557 670
Inventories 940 993 1016
Deferred income taxes 115 96
Other current assets 46 174 86

Financial statement analysis
14
Total current assets 1908 2092 2100
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 5764 5513 5519
Accumulated Depreciation -3357 -3166 -3201
Net property, plant and equipment 2407 2347 2318
Equity and other investments 47
Goodwill 2263 2344 2433
Intangible assets 1152 1205 1175
Deferred income taxes 41 25 32
Other long-term assets 19 76 55
Total non-current assets 5929 5997 6013
Total assets 7837 8089 8113
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1217 1542 1770
Capital leases 2 1 1
Accounts payable 610 544 527
Taxes payable 22 29 37
Accrued liabilities 588 577 536
Other current liabilities 116 113 118
Total current liabilities 2555 2806 2989
Non-current liabilities
Long-term debt 2314 2552 2244
Deferred taxes liabilities 396 505 548
Pensions and other benefits 595
Minority interest 8 -4 -12
Other long-term liabilities -2718 -3648 -2780
Total non-current liabilities
Total liabilities 2555 2806 2989
Stockholders' equity
Common stock 12 12 12
Additional paid-in capital 354 339 330
Retained earnings 1927 2494 2198
Treasury stock -664 -556 -356
Accumulated other comprehensive income -104 -909 -569
Total stockholders' equity 1525 1380 1615
Total liabilities and stockholders' equity 4080 4186 4604
CAMPBELL SOUP CO (CPB) Statement of CASH FLOW
Fiscal year ends in July. USD in millions except per share
data.
2016-
07
2015-
07
2014-
07

Financial statement analysis
15
Cash Flows From Operating Activities
Net income 563 691 807
Depreciation & amortization 308 303 305
Investment/asset impairment charges 141
Deferred income taxes -30 -33 11
Stock based compensation 64 57 57
Change in working capital 79 14 -209
Accounts receivable 24 12 -38
Inventory 59 -14 -56
Prepaid expenses 9 10 -22
Other working capital -13 6 -93
Other non-cash items 338 150 -72
Net cash provided by operating activities 1463 1182 899
Cash Flows From Investing Activities
Investments in property, plant, and equipment -341 -380 -347
Property, plant, and equipment reductions 5 15 22
Acquisitions, net -232 191
Other investing activities -18 -6
Net cash used for investing activities -354 -603 -134
Cash Flows From Financing Activities
Debt repayment -309 -700
Common stock issued 2 9 18
Common stock repurchased -143 -244 -76
Dividend paid -390 -394 -391
Other financing activities -540 412 224
Net cash provided by (used for) financing activities -1071 -526 -925
Effect of exchange rate changes -32
Net change in cash 38 21 -160
Cash at beginning of period 253 232 333
Cash at end of period 291 253 173
Free Cash Flow
Operating cash flow 1463 1182 899
Capital expenditure -341 -380 -347
Free cash flow 1122 802 552
Ratio Calculations 2016 2015 2014
Profitability Ratios:
Return on Equity
Profit avail to owners / 563 691 818
Average Equity
1
,453
1
,498
1,
498

Financial statement analysis
16
Answer: % 38.76% 46.14% 54.61%
Return on Assets:
Net profit (loss) / 563 691 818
Average total assets %
7
,963
8
,101
8,
154
Answer: 7.07% 8.53% 10.03%
Profit Margin
Net profit (loss) / 563 691 818
Sales Revenue (note used operating
revenue) 7,961 8,082 8,268
Answer: % 7.07% 8.55% 9.89%
Gross Profit Margin
Gross profit / 2,780 2,805 2,898
Sales Revenue (note used operating
revenue) 7,961 8,082 8,268
Answer: 0.35 0.35 0.35
Cash Flow to Sales Ratio
Cash Flow from Operating
Activities/ 1,463 1,182 899
Sales Revenue (note used operating
revenue) % 7,961 8,082 8,268
Answer: 18.38% 14.63% 10.87%
Long term solvency level
Solvency ratio
Net income 563.0 691.0 726.0
Depreciation 52.0 48.0 54.0
Long term liabilities #REF! 2,314.0 2,552.0
Answer: #REF! 0.319 0.306
Liquidity Ratios
Current Ratio
Current Assets / 1,908 2,092 2,100
Current liabilities 2,555 2,806 2,989
Answer: 0.75 0.75 0.70

Financial statement analysis
17
Quick Asset Ratio
Current Assets - Inventory / 968 1,099 1,084
Current Liabilities 2,555 2,806 2,989
Answer: 0.38 0.39 0.36
Cash Flow Ratio
Net Cash Flows form Operating
Activities /
1
,463
1
,182 899
Current Liabilities
2
,555
2
,806
2,
989
Answer: 0.5726 0.4212 0.3008
Capital Structure Ratios
Debt to Equity ratio
total liabilities / 2,555 2,806 2,989
Total Equity 1,525 1,380 1,615
Answer: % 1.675 2.033 1.851
Debt Ratio (to assets)
Total Liabilities / 2,555 2,806 2,989
Total assets 7,837 8,089 8,113
Answer % 0.326 0.347 0.368
Equity Ratio
Total Equity / 1,525 1,380 1,615
Total Assets 7,837 8,089 8,113
Answer: % 0.195 0.171 0.199
Interest Coverage Ratio
EBIT / 1,102 1,095 1,251
Net Finance Costs (used net
interest expense) 115 108 122
Answer:
times
p.a
9
.583
10
.139
10.
254
Debt Coverage Ratio
Non Current Liabilities / 5,929 5,997 6,013
Net Cash Flow from Operating
Activities 1,463 1,182 899
Answer:
times
p.a 4.05 5.07 6.69