By Team 4

Vertical analysis of Income statement

Gemini electronics (2009) Sales Cost of goods sold Gross profit 100 65.67 34.33 7.33 5.75 7.17 2.89 11.19 2.41 8.77 3.07 5.7 Industry average 100 62 38 10.89 7.01 8.34 4.35 7.41 2.31 5.10 1.79 3.32
2

Operating costs:
Selling and distribution R&D Administration Depreciation Operating profit Interest Earnings before taxes taxes Net income

Vertical analysis of Balance sheet

Gemini electronics (2009) Cash Accounts receivable Parts inventory WIP inventory Finished goods Inventory Total current assets L,P & E , Net Other assets Total assets Accounts payable Current portion of LT debt Total current liabilities Long term debt Shareholders equity Total liabilities and equity 14.19 15.09 12.06 0.90 18.13 60.39 33.78 5.83 100 15.71 7.88 23.59 39.44 36.95 100 Industry average 4.54 8.34 5.48 1.34 31.99 51.69 41.34 6.97 100 11.23 7 18.23 31.50 50.27 100
3

Key Financial ratios

Gemini Electronics (2009) Industry average

Current ratio Cash ratio

Parts inventory turnover in days WP inventory turnover in days FG inventory turnover in days A/R turnover in days A/P turnover in days

2.56 1.24
46.02 3.359 5.26 37.82 62

2.84 0.05
32.26 7.89 188.33 30.44 11.11

Fixed assets turnover Total assets turnover

4.06 1.4

2.42 1.00

Contd.
Gemini Electronics (2009) Debt ratio Times interest earned Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity 1.06 4.63 34.3% 5.7% 11.18% 10.8% 23.6% Industry average 0.50 3.21 38.00% 7.41% 3.32% 3.32% 6.60%