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Industry
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averages
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Traffic
&
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weather
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8/29/2010
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SIC>>>
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2834
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Industry
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Alert>
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Green
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Note: Treat the table below as if it was weather or traffic
conditions example: compare company ratios to their peers and industry
average look for
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differences.
Are any more or less than 3 times the ratios? If it is then problems exist.
Income statement and balance sheet with negative ratios
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in
braces "(
)" are automatic problem areas that requires inquiry
and answers.
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Do the math: If A/R turnover = 13.63 & Industry A/R = 21,03
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then
21.03/13.63 = 1.54 times is less than 3. It is fine,
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Company names:
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PFIZER
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Johnson
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Merck
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Abbott
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BRISTOL
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Eli-Lilly
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MYLAN
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WATSON
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HarriFin-ratios and leading indicators:
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Industry
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Balance sheet only ratios
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Averages
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Cash/Accounts Receivable^
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0.14
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1.64
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1.41
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1.35
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2.43
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1.33
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0.31
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0.39
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3.98
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Cash/Accounts Payable
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0.45
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2.85
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4.16
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6.88
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4.49
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4.61
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0.73
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0.33
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6.77
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Cash/Current Liabilities
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0.05
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0.73
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0.59
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0.68
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1.22
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0.68
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0.22
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0.19
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0.94
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Accounts
receivable/Inventory^
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1.18
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1.86
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0.82
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2.86
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2.24
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1.17
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1.11
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0.75
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1.64
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Accounts
receivable/Current assets
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0.24
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0.24
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0.23
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0.28
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0.23
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0.27
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0.38
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0.29
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0.22
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Inventory/Current assets
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0.20
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0.13
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0.28
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0.10
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0.10
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0.23
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0.34
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0.39
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0.21
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Current
assets/Total assets
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0.29
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0.42
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0.25
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0.44
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0.45
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0.45
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0.30
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0.30
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0.44
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Property Plant/Total assets
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0.11
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0.16
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0.16
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0.15
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0.16
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0.30
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0.10
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0.12
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0.14
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Property Plant/Long Term Liabilities^
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0.53
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1.79
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1.14
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0.68
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0.82
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1.24
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0.23
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0.60
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0.82
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Property Plant//Equity
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0.25
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0.29
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0.30
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0.33
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0.34
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0.86
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0.36
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0.23
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0.78
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Goodwill/Total
assets
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0.20
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0.16
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0.11
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0.25
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0.17
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0.13
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0.31
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0.28
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0.17
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Accounts Payable/Total
assets
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0.02
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0.06
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0.02
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0.02
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0.06
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0.04
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0.05
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0.10
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0.04
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Accounts Payable/Current liabilities^
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0.12
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0.25
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0.14
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0.10
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0.27
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0.15
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0.30
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0.58
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0.22
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Accrued expenses/Total assets
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0.01
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0.10
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0.08
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0.10
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0.09
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0.17
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0.09
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0.10
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0.09
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Current liabilities/Total Assets
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0.17
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0.23
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0.14
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0.25
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0.20
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0.24
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0.16
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0.18
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0.18
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Current liabilities/Long Term Liabilities
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0.86
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2.64
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0.98
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1.16
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1.03
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0.99
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0.34
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0.91
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1.32
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Current liabilities/Total liabilities
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0.30
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0.49
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0.31
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0.44
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0.39
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0.37
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0.22
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0.35
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0.40
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Current liabilities/Equity^
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0.41
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0.43
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0.26
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0.57
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0.43
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0.69
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0.55
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0.35
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0.61
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Income statement only ratios
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Cost of goods sold/Sales (Redundant-check)
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0.18
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0.30
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0.33
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0.43
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0.27
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0.19
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0.59
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0.57
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0.36
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Gross Profit/Sales
(GP%)
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0.82
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0.70
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0.67
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0.57
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0.73
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0.81
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0.41
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0.43
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0.64
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Selling, General
& Administrative/Sales
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0.38
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0.32
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0.31
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0.27
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0.27
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0.32
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0.25
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0.19
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0.35
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Depreciation & amortize (or R &
D)/Sales
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0.16
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0.11
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0.21
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0.09
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0.19
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0.20
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0.08
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0.07
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0.44
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Interest expense/Sales
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0.00
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0.01
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0.00
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0.02
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0.00
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0.00
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0.06
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0.01
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0.04
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Earning before tax/Sales
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0.22
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0.25
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0.56
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0.23
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0.30
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0.25
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0.04
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0.13
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(0.12)
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Profit margin/Sales
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0.17
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0.20
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0.47
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0.19
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0.56
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0.20
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0.02
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0.08
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(0.15)
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Earnings Per Share^
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1.23
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4.45
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5.67
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3.71
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1.63
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3.94
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0.31
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2.11
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2.22
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Traditional ratios (combination all financial ratios)
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Quick ratio or Acid Test
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1.09
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1.34
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1.03
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1.26
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1.85
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1.19
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0.96
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0.70
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1.91
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Accounts
receivable turnover
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4.24
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6.39
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5.77
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5.12
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5.53
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7.13
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4.25
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6.78
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7.00
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Inventory turnover
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1.06
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3.61
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1.78
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6.89
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3.23
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1.59
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2.77
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2.74
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3.09
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Working Capital Turnover
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2.47
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3.95
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3.14
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3.92
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2.41
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8.30
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3.19
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3.30
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3.18
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Accounts Payable Turnover
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2.90
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2.83
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6.32
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10.04
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3.17
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4.58
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5.94
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3.20
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5.99
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Current ratio^
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1.66
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1.82
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1.80
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1.79
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2.21
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1.90
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1.91
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1.68
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2.67
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Asset turnover
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0.31
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0.69
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0.34
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0.65
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0.62
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0.77
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0.48
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0.58
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0.60
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Debt to total
assets
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0.58
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0.47
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0.45
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0.56
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0.52
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0.65
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0.71
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0.50
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0.50
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Debt to Equity
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0.94
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0.44
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0.57
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0.72
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0.67
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1.19
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1.89
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0.63
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2.25
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Equity to Assets
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0.42
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0.53
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0.55
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0.44
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0.48
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0.35
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0.29
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0.50
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0.50
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P/E or price
earnings
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15.20
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14.38
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2.88
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13.05
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13.36
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8.63
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49.74
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16.06
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15.38
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Rate of return on
assets
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0.09
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0.20
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0.20
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0.18
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0.43
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0.23
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0.05
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0.05
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0.17
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Return on Equity
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0.10
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0.24
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0.21
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0.25
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0.72
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0.45
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0.03
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0.07
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0.01
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Return on investment
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0.04
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0.13
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0.12
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0.11
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0.34
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0.16
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0.01
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0.04
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0.07
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Time interest
Earned
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0.00
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35.93
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0.00
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14.84
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0.00
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0.00
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1.71
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11.60
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40.48
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Number of Days’ Sales in Inventory
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344.63
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101.23
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205.31
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52.99
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112.84
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229.60
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131.82
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133.19
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142.73
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Payment Days Accounts payable (In days)
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125.68
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129.05
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57.76
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36.36
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115.25
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79.66
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61.50
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113.89
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128.25
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Average collection period (number of days)
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86.14
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57.10
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63.28
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71.23
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66.06
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51.17
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85.98
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53.87
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57.48
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Cash Flow Margin
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0.33
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0.27
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0.12
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0.24
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0.22
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0.20
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0.12
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0.13
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(0.02)
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Cash Flow Return
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0.08
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0.18
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0.03
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0.14
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0.13
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0.16
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0.06
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0.06
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0.10
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Cash flow to net income
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1.92
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1.35
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0.26
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1.27
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0.38
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1.00
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6.47
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1.70
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1.61
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Cash flow to total liability
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0.14
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0.38
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0.07
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0.25
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0.25
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0.24
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0.08
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0.13
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16.00
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The other ratios
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Cash flow without questionable adjustment
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0.14
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0.25
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0.12
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0.24
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0.22
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0.20
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0.06
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0.13
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(0.03)
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Operating profit to average total assets
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0.00
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0.00
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0.00
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0.13
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0.00
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0.00
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0.05
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0.08
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0.06
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Accounts Payable/Cost of Goods Sold
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0.49
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0.30
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0.25
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0.10
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0.33
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0.23
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0.17
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0.39
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0.34
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Accounts payable/Purchases
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0.26
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0.30
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0.15
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0.09
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0.36
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0.21
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**
