Debt to equity total debt longshort total

Debt to equity:
Total debt (long+short)
Total stockholder's equity
14.00% 13.00% 10.00%
Debt to assets:
Total debt (long+short)
Total Assets
14.00% 13.00% 11.00%
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Company profile: Columbia
Liquidity:
Current Ratio:
current assets
total current liabilities
3.9:1 3.9:1 5.1:1
Acid-test Ratio:
cash+ short term
investments+ net
current receivables
Total current liabilities
1.4:1 2.0:1 2.9:1
Profitability: (%)
Return on assets:
Net income
Assets
9.80% 7.70% 7.20%
Return on equity:
Net income
Shareholder's equity
9.60% 7.60% 6.70%
Profit Margin Ratio:
Net Income
Sales (revenue)
14.07% 12.23% 12.78%
Capital market /
Shareholders return:
Earnings per share (ESP):
(Net income-dividends on
preferred stock)
Average outstanding shares
$1.08 $0.77 $0.68
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Company profile: Columbia
Project earnings, P/E Ratio:
Current market value per
share
earnings per share (ESP)
$15.36 $26.98 $19.82
Executive Summary:
It appears that Columbia is taking large financial risks. The numbers above show stagnate
growth; however Columbia is pulling in record high sales. Showing that stagnation of
accumulative growth, is in fact active reinvestment, and has been very profitable. Illustrating that
investment can be worth the risk.
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Company profile: Columbia
Activity/Efficiency
Asset turnover ratio: This figure illustrates how well a business uses it’s assets to
generate sales. The higher the number of the ratio, the more efficient the company is at this. A
decline in efficacy would represent overinvestment in company assets.
This is trending positive, indicating that efficiency with our investment in plants,
equipment and other developmental costs. Maintaining Colombia’s low investment strategy in
manufacturing, would allow this number to remain positive.
Average Inventory Investment Period: This number represents the number of days
before out flow can be converted to sales. Lower numbers represent less time and thus money
invested into a project.
The rise in number here, is a rise in the cost and the length of time money is tied up. This
circles back to the fact the current investments are effecting the availability of revenue.
Accounts receivable: This illustrates the percentage of sales that still needs to be used to
pay off short term loans. The lower the number the more money may be kept, and utilized for
other projects.
This number shows the increase payment time for sales, this may be due to the large
increase in sales and the inability for the current structure to absorb the immediate costs. This
means that the revenue unfortunate percent of revenue is money that cannot be used elsewhere.
Implications: It seems that Columbia has weighed the scales in their favor. While it takes
investment longer to be repaid and they are holding on to short term loans longer, it seems the
have found a system to become consistently more effect in raising the amount sales they can
receive for every dollar spend. It’s no wonder they are breaking records for sales.