Columbia Southern University Operations And Supply Chain Management Assignment Help - Advanced Corporate

Question - Case 1: Review the requirements of the Chapter 3 Mini-Case, parts b through j (problems are at the
bottom). Then apply those requirements to do an analysis of Brinker International, which is a real
company. Do the analysis on the basis of the figures for the most recent year. For part g, use the 2
most recent years. Download 10K financial statements for the most recent year for Brinker. A good
source is the company's home page. Also compare the Brinker ratios to the industry averages. You'll
note that some of the company's ratios you calculate won't agree with those found on the web page.
Ratios are calculated in different ways, however, you should use the formulas in the text. Also, you
won't find all of the industry averages, but y ...Read More ou will find most of them. You'll need the company's stock
price for several of the ratios; use the fiscal year end price. The company's stock symbol is EAT.
Use the following websites for figures to answer questions b through j:
http://www.brinker.com/
http://investing.money.msn.com/investments/key-ratios?symbol=eat&page=PriceRatios
Note:
ï‚· All quantitative work must be done in Excel; Word is not acceptable.
B. Calculate the 2011 current and quick ratios based on the projected balance sheet and income
statement data. W hat can you say about the company's liquidity position in 2009, 2010 and as
projected for 2011? We often think of ratios as being useful (1) to managers to help run the business,
(2) to bankers for credit analysis, and (3) to stockholders for stock valuation. Would these different
types of analysts have an equal interest in the liquidity ratios?
C. Calculate the 2011 inventory turnover, days sales outstanding (DSO), fixed assets turnover, and
total assets turnover. How does Brinker's utilization of assets stack up against that of other firms in its
industry?
D. Calculate the 2011 debt, times-interest-earned, and EBITDA coverage ratios. How does Brinker
compare with the industry with respect to financial leverage? W hat can you conclude from these
ratios?
E. Calculate the 2011 profit margin, basic earning power (BEP), return on assets (ROA), and return
on equity (ROE). W hat can you say about these ratios?
F. Calculate the 2011 price/earnings ratio, price/cash flow ratio, and market/book ratio. Do these
ratios indicate that investors are expected to have a high or low opinion of the company?
G. Perform a common size analysis and percentage change analysis. What do these analyses tell
you about Brinker?
H. Use the extended Du Pont equation to provide a summary and overview of Brinker's financial
condition as projected for 2011. What are the firm's major strengths and weaknesses?
I. What are some potential problems and limitations of financial ratio analysis?
J. What are some qualitative factors that analysts should consider when evaluating a company's likely
future financial performance? ...Read Less

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