Assesing Company’s finance Essay

SALES GROWTHDuring the four- grade period end December 31, 2008, SciTronics sales grew at a 20.69 % ($244,000/$115,000) = (1+r) 4 compound rate. There were no acquisition or divestitures.PROFITABILITY balance How Profitable is the social club?1. SciTronics profit as a percentage of sales in 2008 was 5.73% (14000/244000)2. This represented an increase from 3.4% (5000/147000) in 2005.3. SciTronics had a full(a) of $112, 000 (75,000+20,000+7,000+10,000) of capital at closing 2008 and get before stakes except after taxes (EBIAT) $16,000 (26,000-10,000) in 2008. Its return on capital was 14.29% (16,000/112,000) which represents an increase from the 8.11% (6,000/74,000) realise in 2005. 4. SciTronics had $75,000 of owners beauteousness and earned $14,000 after taxes in 2008. Its return on equity was 18.66% ($75,000/$14,000), which represents an value from the 8.19% ($5,000/$61,000) earned in 2005.ACTIVITY RATIO How Well Does the Company Employs Its Assets?1. Total Assets turnove r for SciTronics in 2008 arse be calculated by dividing $244,000 (net sales) into $159,000 ( natural assets). The turnover deteriorated from 1.58 times in 2005 to 1.53 in 2008.2. SciTronics had $66,000 in accounts receivables at year end 2008. Its number sales per day were $668.49 ($244,000/365) during 2008 and its average charm period was 98.73 days. ($66,000/668.49). This represents an improvement from the average appeal period of104.29 ($42,000/402.73) days in 2005.3. SciTronics apparently needed $29,000 of inventory at closing 2008 to support its ope proportionalityns during 2008. Its activity during 2008 as measured by the monetary value of goods change was $74,000. (COGS). It therefore had an inventory of turnover of 2.55 (74,000/29,000) times. This represents an improvement from2.04 (43,000/21,000) times in 2005.4. SciTronics had net hollow assets of $18,000 (net fix assets) and sales of $244,000 in 2008. Its quick-frozen asset turnover proportion in 2008 was 13.56 ( 244,000/18,000), a deterioration from 16.33 (147,000/9,000) in 2005.leverage RATIOS How Soundly Is the Company Financed?1. SciTronics ratio of total assets divided by owners equity change magnitude from 1.52 (93,000/61,000) at year end 2005 to 2.12 (159,000/75,000) at year-end 2008.2. At year-end 2008, SciTronics total liabilities were of its total assets was 52.83% (48,000+7000+20000+9000/159000), which compares with 34.4% (21,000+11,000)/93,000).3. The market value of SciTronics equity was $175,000,000 at December 31, 2008. The total debt ratio at market was 32.4% (84,000/84,000+175,000).4. SciTronics kale before interest and taxes (operating income) were $26,000 in 2008 and its interest charge were $2,000. Its times interest earned were 13 times. This represents an improvement from the 2005 level of 10 times.5. SciTronics owed its supplies $6,000 at year end 2008. This represents 8.1%(6,000/74,000) of cost of goods sold and was a decrease from 11.63% (5,000/43,000) at year end 2005. The company appears to be more prompt in compensable its suppliers in 2008 than it was in 2005.6. The financial risk of SciTronics decreased between 2005 and 2008.LIQUIDITY RATIOS How politic Is the Company?1. SciTronics held $133,000 of current assets at year-end 2008 and owed $48,000 to creditors due to be paid at bottom one year. Its current ratio was 2.77 ( 133000/48000 ), a decrease from the ratio of 3.90 (82000/21000) at year-end 2005.2. The quick ratio for SciTronics at year end 2008 was 2.16 (133,000-29,000)/48,000), a decrease from the ratio of 2.90 (82,000-21,000/21,000) at year-end 2005.