California Pizza Kitchen opened its first restaurant In Beverly Hills in 1985. A

Question

California Pizza Kitchen opened its first restaurant In Beverly Hills in 1985. Almost immediately after the first location opened, it expanded from California to more than 250 locations in more than 30 states and 11 countries. California Pizza Kitchen completed an initial public offering in August 2000 and traded on the NASDAQ National Market under the ticker symbol CPKI. On July 7, 2011, Golden Gate Capital completed the acquisition of California Pizza Kitchen and, as a result of the acquisition, the company’s common stock is no longer publicly traded.

Compute the following ratios using information from the company annual report that was issued before California Pizza Kitchen was acquired.

California Pizza Kitchen opened its first restaurant In Beverly Hills in 1985. Almost immediately after the first location opened, it expanded from California to more than 250 locations in more than 30 states and 11 countries. California Pizza Kitchen completed an initial public offering in August 2000 and traded on the NASDAQ National Market under the ticker symbol CPKI. On July 7, 2011, Golden Gate Capital completed the acquisition of California Pizza Kitchen and, as a result of the acquisition, the company’s common stock is no longer publicly traded.

Explanation / Answer

Ratio Calculation UOM 2010 2009 a Current Ratio Current Asset/Current Liabilities Times                       0.53                               0.60 =49625/93151 =53586/89377 b Quick Ratio Liquid Asset/Current Liabilities Times                       0.44                               0.46 =(49625-5827-231-2518)/93151 =(53586-5557-4957-2031)/89377 c Profit margin Profit after tax/Net Sales % -0.1% 0.7% =-406/642231 =4581/664686 d Return On Equity Profit after tax/Equity Share holder's Fund % -0.2% 2.4% =-406/194411 =4581/189250 e Inventory Turnover Ratio Net Sales/Inventory Times                  110.22                          119.61 =642231/5827 =664686/5557 f Debt/Equity Ratio total Liability/Equity times                       0.70                               0.85 =(330944-194411)/194411 =(350258-189250)/189250 g Earning per share Earning available for equity shareholder/No of Shares times -0.02 0.19

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