UofP - MBA580 - Week Six - Ratios - 10-07-06

UofP - MBA580 - Week Six - Ratios - 10-07-06 - Stewart...

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Stewart Information Services Corporation (STC) Financial Position Ratios and Working Capital 2005 2004 2003 Trend Rounded Profitability Ratios Return on Equity (%) 11.58 11.83 19.92 Downward 13.50 Return on Assets (%) 6.52 6.91 11.99 Downward 8.50 Return on Investment 139.28 196.65 466.34 Downward 122.00 Gross Margin 0.05 0.05 0.05 No change 0.04 EBITDA of Revenue (%) 8.32 7.58 10.05 Upward 9.00 Operating Margin (%) 6.92 6.16 8.93 Upward 6.50 Pre-Tax Margin 6.79 6.10 8.89 Upward 6.50 Net Profit Margin (%) 3.65 3.78 5.52 Downward 2.00 Effective Tax Rate (%) 34.41 38.06 37.97 Downward 36.00 Liquidity Indicators Quick Ratio 4.52 4.31 4.78 Upward 5.00 Current Ratio 3.05 2.93 3.31 Upward 5.50 Working Capital/Total Assets 0.21 0.21 0.23 No change 0.35 Debt Management (Leverage) Industry Average
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Current Liabilities/Equity 0.18 0.19 0.17 Downward 0.19 Total Debt to Equity 0.12 0.07 0.04 Upward 0.08 Long Term Debt to Assets 0.06 0.04 0.02 Upward 0.04 Asset Management (Activity) 1.79 1.83 2.17 Downward 2.00 Revenues/Working Capital 8.41 8.66 9.27 Downward 8.50 Interest Coverage 50.23 107.74 277.70 Downward 125.00 Source: Mergents Online. (2006). Stewart Information Services Corporation. Retrieved September 3 Revenues/Total Assets (Total Assets Turnover)
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Interpretation Ratios and W 2005 2004 2003 Trend After-tax profits per dollar of stockholders' investment appear to be in a decline based on industry average. After-tax profits per dollar of
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UofP - MBA580 - Week Six - Ratios - 10-07-06 - Stewart...

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