Please Check This! They ALL Have To Be Correct Please!!! Here is the link to hel
ID: 2785427 • Letter: P
Question
Please Check This! They ALL Have To Be Correct Please!!! Here is the link to help you....
https://ditm-twdc-us.storage.googleapis.com/2016-Annual-Report.pdf
Walt Disney’s 2016 Ratios
Walt Disney Co., Profitability Ratios
Return on Equity (ROE) 9,391,000 (net income) / 43,265,000 (equity) = 21.71%
Return on Assets (ROA) 9,391,000 (net income) / 92,033,000 (total assets) = 10.20%
Net Profit Margin 9,391,000 (net income) / 55,632,000 (sales) = 16.88%
Liquidity Ratios
Current Ratio 16,966,000 (current assets) / 16,842,000 (current liabilities) = 1.01
Quick Ratio 4,610,000 (cash & cash equivalents) + 9,065,000 (receivables) / 16,842,000 (current liabilities) = 0.81
Activity Ratios
Accounts Receivables Turnover 55,632,000 (sales) / 9,065,000 (receivables) = 6.14
Total Asset Turnover 55,632,000 (sales) / 92,033,000 (total assets) = .60
Financing Ratios
Debt Ratio 44,710,000 (total liabilities) / 92,033,000 (total assets) = .49
Debt – Equity Ratio 44,710,000 (total liabilities) / 43,265,000 (equity) = 1.03
Market Ratios
Earnings per Share (EPS) 9,391,000 (income available) / 1,591,460,982
(shares outstanding) = 5.90
Price Earnings 98.26 (current share price) / 5.90 (EPS) = 16.65
Market Book 98.26 (share price) / 27.19 (Book Value per Share) = 3.61
Explanation / Answer
It appears to be correct except for EPS and P/E. However, on page 25, EPS is already calculated. I am not sure where you got no. of shares from.
Diluted EPS = Net Income / No. of shares = 9,391 / 1,639 = $5.73
=> P/E = 98.26 / 5.73 = 17.14
Many people use averages for 2015 and 2016 for balance sheet items.
For example, ROE (2016) = Net Income (2016) / (Equity(2015) + Equity(2016))/2