157_634718044028356491_Sam_s_Town_2011

34353 30000 74575 10000 3000 20000 3000 1000 500 639

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Unformatted text preview: 0) (10,000) (5,000) (15,000) (15,361) 108,000 $92,639 $15,361 10,000 75,000 Sam's Town Ratios Earnings Per Share P/E $0.57 $12.00 / $.59= Book Value per Share Current Ratio 21 $201,350 / 60,000= $256,425 / $125,075 = The portion of the Net Income earned by each share of common stock is $.57. The stock is selling at 21 times earnings which means if you pay $12 per share and there is no growth in earnings, you will earn 4.76% on your investment which is low considering that there will be risk with this type of investment. You would be banking on either future earnings being a lot higher or else that the price of the stock is going to go up. $3.34 The value the books are carrying for each share of common stock is $3.33. 2.04 For every $1 that is owed that has to be paid withing the next 12 months, there is $1.86 in assets that are expected to be used up in generating revenues or to be converted to cash within the next 12 months. $1.86 is probably too low since almost half of the current assets are in inventory. ROA $35,350 / (($369,...
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