Merk Financials (in millions of U.S.

dollars)
2011
48047
16871
13336
0
942
6272
0

2010
45987
18396
12603
0
671
861
0

2009
27428
9019
8097
0
2268
12899
0

2008
23850
5583
7377
0
1999
7808
0

2007
24197.7
6140.7
7556.7
0
95.3
3275.4

Cash
Marketable Securities
A/R
Inventories
Total Current Assets
PPE
Total Assets

13531
1441
8537
6254
33181
32473
105128

10900
1301
7692
5868
29064
30563
105781

9311
293
6942
8048
28432
30874
112314

4368.3
1118.1
3531.1
2091
19112.6
24128.2
47195.7

5336.1
2894.7
3636.2
1881
15045.4
24803
48350.7

A/P
Total Current Liabilities
Long-term Debt
Total Liabilities

2462
16245
15525
50611

2308
15641
15482
51405

2244
15641
16095
53256

617.6
14318.7
3943.3
28437.4

624.5
12258.2
3915.8
30166

Shareholder's Equity
54517
54376
Total Shareholder's Equity and Total Current Liabilities
105128
105781

59058
112314

18758.3
47195.7

18184
48350.7

3392
0.35

6571.7
0.35

6999.2
0.35

Sales
Cost of Goods Sold
Marketing & Administrative Expense
Interest Expense
Income Tax Expense
Net Income
Preferred Dividends

Cash Flow from Operations

Tax Rate

12383
0.35

10822
0.35

RO
Gr
EB

Eff
As
AR
Da
Inv
Da
AP
Da
Op
Ca

Ne
PP

Liq
Cu
Qu
Ca
Op

Int

So
Lia
De
Ne
De
Ne
ZS

Div
Su

FR

DuPont Decomposition
ROA Approach
ROE
ROA
Leverage

11.50%
5.97%
1.928352624

PM
AT
ROA
NOPAT Approach
NOPAT
Operating ROA
Net Assets

1.928 1.928353

13.05%
45.42%
5.93%
6272
8.26%
75901

LT Assets
Op WC
Interest Expense

71947 No Current Liabilities

34366 Net LT Assets
3954
9%

Net Financial Leverage

Net Debt
Spread

Net Debt/Equity

ROE

Op ROA + Spread * Net Financial Elevrage

8.26%

NOPAT Margin
Operating Asset Turnover

1.01%
553
-0.74% Incremental Economic Effect of Borrowing over using eq

13.05% NOPAT/Sales
63.30%

Sales Margin
Profitability Analysis
ROS or PM
Gross Margin
EBITDA Margin

Net Income/Sales
Gross Income/Sales
EBITDA/Sales

Efficiency Ratios
Asset Turnover
AR Turnover
Day in AR
Inv Turnover
Days in Inv
AP Turnover
Days in AP
Op Cycle
Cash Cycle

Sales/Avg Assets
Sales/Avg AR
365/AR Turnover
COGS/Avg Inventory
365/Inv Turnover
COGS/Avg AP
365/AP Turnover
Days in AR + Days in Inv
Days in AR + Days in Inv - Days in AP

0.130539
0.648865 (Sales-COGS)/Sales

Net LT Assets Turnover

PP&E Turnover

Sales/Avg Net LT Assets

Sales/Avg PP&E

Liquidity Ratios
Current
CA/CL
Quick
(Cash+marketSec + AR) /CL
Cash
(Cash+marketSec ) /CL
Op Cash Flow Ratio
CFO/CL
(Times) Interest Earned Ratio
NI Before Taxes+Int Expense/Int Expense
Interest Coverage Ratio
(CFO+Int Exp+Taxes)/Int Exp
Solvency Ratio
Liability to Equity
Debt to Eqity
Net Debt to Equity
Debt to Capital
Net Debt to Capital
Z Score, F Score

TL/Equity
Total Debt/Equity
(Total Debt - Cash and Eq)/Equity
Total Debt/(Total Debt + Equity)
(Total Debt - Cash and Eq)/(Total Debt - Cash and Eq +Equity)

Dividend Payout Ratio

Dividend Paid/NI
Sustainable Growth Ratio ROE(1-Div Payout Ratio)
FREE CASH FLOW

CFO-Cap Ex

Component of ROE that does not require change in finan

37581

Effect of Borrowing over using equity

at does not require change in financing policies

Cash & Equivalents

Short Term Investments
Cash and Short Term Investments
Accounts Receivable - Trade, Net
Receivables - Other
Total Receivables, Net
Total Inventory
Prepaid Expenses
Other Current Assets, Total
Total Current Assets
Property/Plant/Equipment, Total - Gross
Accumulated Depreciation, Total
Goodwill, Net
Intangibles, Net
Long Term Investments
Other Long Term Assets, Total
Total Assets
OP Current Assets

13,531.00

8,537.00
6,254.00
3,418.00
32,473.00
-16,176.00

4,849.00
105,128.00
21,740.00

Accounts Payable
Accrued Expenses
Notes Payable/Short Term Debt
Current Port. of LT Debt/Capital Leases
Other Current liabilities, Total
Total Current Liabilities
Long Term Debt
Capital Lease Obligations
Total Long Term Debt
Total Debt
Deferred Income Tax
Minority Interest
Other Liabilities, Total
Total Liabilities
OP Current liabilities

OP WC

2,462.00
9,731.00
0
2,062.00

16,415.00
50,611.00
14,255.00

7,485.00

1.00E+06

40%
30%
15%
10%
5%

4.00E+05
3.00E+05
1.50E+05
1.00E+05
5.00E+04

4.00E+05
4.00E+05
7.00E+05 6.00E+05 1.50E+05 5.50E+05
8.50E+05
1.50E+05 7.00E+05
9.50E+05
1.50E+05 8.50E+05
1.00E+06
1.50E+05 1.00E+06

Current Assets
Current Ratio
AT
ROA
ROE
ROS
AR
ROE
NOPAT
AR T

1.00E+07
Orig
Restated
Rev
1.00E+06 -1.00E+05 9.00E+05
AR
2.00E+05 -1.00E+05 1.00E+05
Last Yr AR
2.00E+05
2.00E+05
AR Turnover
5
6

Inv
1.00E+06 Writedown 1.00E+05 New Inv
Inv -last Year 1.50E+06
COGS
2.00E+07
Inv Turnover
16
New Inv Turnover 16.75

Accu Dep
Dep Expense

Debt to Equity
ROE

9.00E+05

Equity
Debt/NI
Debt
A
ROA

Down
Down

Assets
NI

Up
Up

No Change
No Change
Lower
Up
Up
Down
Rev
Down
Down
Unknown

Down

1.5
10%
0.1NI
0.15
0.15 NI
0.25 NI
1/0.25

1.00E+06

Yr

Div
1
2
3
4
5
6
7
8
9
10

LV
re

Yr

Div
1
2
3
4
5
6
7
8
9
10

Div
r
g

Increase in Div

10
10.1
10.201
10.30301
10.40604
10.5101
10.6152
10.72135
10.82857
10.93685
10
10%

1%
1%
1%
1%
1%
1%
1%
1%
1%

Increase in Div

10
11.5
13.225
15.20875
17.49006
20.11357
23.13061
26.6002
30.59023
35.17876
35.17876 Stage 1
10% Stage 2
2%

15%
15%
15%
15%
15%
15%
15%
15%
15%

PV
9.090909
8.347107
7.664162
7.037094
6.461332
5.932678
5.447277
5.001591
4.592369
4.21663
63.79115
3.855433
67.64658
PV
9.090909
9.504132
9.936138
10.38778
10.85995
11.35359
11.86966
12.40919
12.97324
13.56294
111.9475
169.5367
281.4842

Div Discount Model

Constant Dividend in perpetuity
Gordon Growth
Two Stage Model
H Model
Three Stage Model

67.65
100.00
111.11
281.48
427.86
512.72

Yr

Div
1
2
3
4
5
6
7
8
9
10

Div10

10
11.5
13.11
14.8143
16.592016
18.41713776
20.25885154
22.08214817
23.84872003
25.51813043
R
g
R-g
(1+R)^T
(R-g)((1+R)^T)

Yr
Const Growth

Div10
Decaying Growth

Div
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

10
11.5
13.225
15.20875
17.4900625
20.11357188
23.13060766
26.6001988
30.59022863
35.17876292
40.10378973
45.31728239
50.75535628
56.33844547
61.97229002
67.54979612
72.95377981
78.0605444
82.74417706
86.88138591

Increase in Div
PV
9.090909
15.00% 9.504132
14.00% 9.849737
13.00% 10.11837
12.00% 10.30234
11.00% 10.39599
10.00% 10.39599
9.00% 10.30149
8.00% 10.11419
7.00% 9.838344
10.00% 99.91148
7%
3.00%
2.593742
0.077812
327.9448
427.8563
Increase in Div
PV
9.090909
15.00% 9.504132
15.00% 9.936138
15.00% 10.38778
15.00% 10.85995
15.00% 11.35359
15.00% 11.86966
15.00% 12.40919
15.00% 12.97324
15.00% 13.56294
14.00% 14.05613
13.00% 14.43948
12.00% 14.70202
11.00% 14.83567
10.00% 14.83567
9.00% 14.7008
8.00% 14.43352
7.00% 14.03988
6.00% 13.52933
5.00% 12.91436

R
10.00%
g
5%
R-g
5.00%
(1+R)^T
6.7275
(R-g)((1+R)^T)
0.336375
86.88139
258.2873
512.7217

111.9475

142.4869

Stable Growth

CFO
CapEx
Net Debt
330000 -176000
546000 -187000
606520 -180000
536217 -190000

0
0
0
0

FCFE
154000
359000
426520
346217
1285737

Yr

BV
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Div
10
25.00
40.75
57.29
74.65
92.88
112.03
132.13
153.24
175.40
198.67
222.64
247.32
272.75
298.94
325.92
353.70
382.32
411.80
442.16
473.43
505.02
536.92
569.14
601.68
634.55
667.75
701.28
735.14
769.35
803.89

NI
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

AE
15.00
15.75
16.54
17.36
18.23
19.14
20.10
21.11
22.16
23.27
23.97
24.69
25.43
26.19
26.98
27.79
28.62
29.48
30.36
31.27
31.59
31.90
32.22
32.54
32.87
33.20
33.53
33.86
34.20
34.54

14
13.25
12.4625
11.63563
10.76741
9.855777
8.898565
7.893494
6.838168
5.730077
4.101182
2.423421
0.695326
-1.08461
-2.91795
-4.80628
-6.75127
-8.7546
-10.818
-12.9434
-15.7579
-18.6006
-21.4718
-24.3716
-27.3004
-30.2586
-33.2463
-36.2638
-39.3116
-42.3898

DF

PV of AE

re
AE
0.909091 12.72727 BV o
0.826446 10.95041 Stock Price
0.751315 9.363261
0.683013 7.947288
0.620921 6.685712
0.564474 5.563329
0.513158 4.566371
0.466507 3.682373
0.424098 2.900051
0.385543 2.209193
0.350494 1.437439
0.318631 0.772177
0.289664 0.201411
0.263331 -0.28561
0.239392 -0.69853
0.217629 -1.04599
0.197845
-1.3357
0.179859 -1.57459
0.163508 -1.76884
0.148644 -1.92395
0.135131 -2.12938
0.122846 -2.28501
0.111678 -2.39793
0.101526 -2.47434
0.092296 -2.51972
0.083905 -2.53886
0.076278 -2.53595
0.069343 -2.51466
0.063039 -2.47818
0.057309
-2.4293

10%
36.06976
10
46.06976