just need help with 3 & 4 LINKS ARE PROVIDED YOU JUST HAVE TO COPY AND PASTE ON
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just need help with 3 & 4
LINKS ARE PROVIDED YOU JUST HAVE TO COPY AND PASTE ON YOUR SEARCH BAR
10-K reports (fiscal year 2015) for Williams-Sonoma, Inc.
LINK 1
https://www.sec.gov/Archives/edgar/data/719955/000119312517104341/d265187d10k.htm
10-K reports (fiscal year 2015) for Williams-Sonoma, Inc.
LINK 2
https://www.sec.gov/Archives/edgar/data/719955/000119312516525847/d120289d10k.htm
10-K reports (fiscal year 2014) for Williams-Sonoma, Inc.
LINK 3
https://www.sec.gov/Archives/edgar/data/719955/000119312515118009/d851953d10k.htm#tx851953_13
10-K reports (fiscal year 2016) for Pier 1 Imports, Inc.
LINK 4
https://www.sec.gov/Archives/edgar/data/278130/000119312517136345/d343458d10k.htm
10-K reports (fiscal year 2015) for Pier 1 Imports, Inc.
LINK 5
https://www.sec.gov/Archives/edgar/data/278130/000119312516556025/d133529d10k.htm
10-K reports (fiscal year 2014) for Pier 1 Imports, Inc.
LINK 6
https://www.sec.gov/Archives/edgar/data/278130/000119312515153179/d881010d10k.htm#toc881010_13
(3) Prepare ratio analyses (for the same THREE year time period) for both companies. At least, you should include the following ratios in your computations: (1) current ratio, (2) acid-test ratio, (3) receivables turnover, (4) inventory turnover, (5) asset turnover, (6) profit margin on sales, (7) rate of return on assets, (8) rate of return on common stock equity, (9) earnings per share, (10) payout ratio, (11) debt to total assets ratio, (12) times interest earned, (13) cash debt coverage ratio, and (14) book value per share.
(4) Comment on the analytical results of the two companies. Your comments should concentrate on the trends across the companies. In addition to contrasting the ratios between the companies, you should interpret the numbers and make suggestions as to why the ratio of one company might be higher/lower than the other.
Table 1. Williams-Sonoma, Inc ----Balance Sheet
Williams-Sonoma, Inc.
BALANCE SHEET
Fiscal Years 2016, 2015, 2014, 2013
(In thousands)
FY 2016
FY 2015
FY 2014
FY 2013
ASSETS
Current assets
Cash and cash equivalents
$ 213,713
$ 193,647
$ 222,927
330121
Restricted cash
—
—
—
14289
Accounts receivable, net
88,803
79,304
67,465
60,330
Merchandise inventories, net
977,505
978,138
887,701
813,160
Prepaid catalog expenses
23,625
28,919
33,942
33,556
Prepaid expenses
52,882
44,654
36,265
35,309
Deferred income taxes, net
—
—
130,618
121,486
Other assets
10,652
11,438
13,005
10,852
Total current assets
1,367,180
1,336,100
1,391,923
1,419,103
Property and equipment, net
923,283
886,813
883,012
849,293
Deferred income taxes, net
135,238
141,784
4,265
13,824
Other assets, net
51,178
52,730
51,077
54,514
Total assets
$ 2,476,879
$ 2,417,427
$ 2,330,277
2,336,734
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable
$ 453,710
$ 447,412
$ 397,037
404791
Accrued salaries, benefits and other liabilities
130,187
127,122
136,012
138,181
Customer deposits
294,276
296,827
261,679
228,193
Income taxes payable
23,245
67,052
32,488
49,365
Current portion of long-term debt
—
—
1,968
1,785
Other liabilities
59,838
58,014
46,764
38,781
Total current liabilities
961,256
996,427
875,948
861,096
Deferred rent and lease incentives
196,188
173,061
166,925
157,856
Long-term debt
1,968
Other long-term obligations
71,215
49,713
62,698
59,812
Total liabilities
1,228,659
1,219,201
1,105,571
1,080,732
Stockholders’ equity
Preferred stock: $.01 par value; 7,500 shares
authorized; none issued
—
—
—
0
Common stock: $.01 par value; 253,125 shares
authorized;
87,325 and 89,563 shares issued and outstanding at
873
896
919
941
January 29, 2017 and January 31, 2016, respectively
Additional paid-in capital
556,928
541,307
527,261
522,595
Retained earnings
701,702
668,545
701,214
729,043
Accumulated other comprehensive loss
(9,903)
(10,616)
(2,548)
6524
Treasury stock – at cost: 20 and 29 shares as of January
29, 2017 and January 31, 2016, respectively
(1,380)
(1,906)
(2,140)
(3,101)
Total stockholders’ equity
1,248,220
1,198,226
1,224,706
1,256,002
Total liabilities and stockholders’ equity
$ 2,476,879
$ 2,417,427
$ 2,330,277
2,336,734
Table 2. Williams-Sonoma, Inc --- Statement of Income
Williams-Sonoma, Inc.
STATEMENT OF INCOME
Fiscal Years 2016, 2015, 2014,2013
(In thousands)
FY 2016
FY 2015
FY 2014
FY 2013
E-commerce net revenues
$ 2,633,602
$ 2,522,580
$ 2,370,694
$ 2,115,022
Retail net revenues
2,450,210
2,453,510
2,328,025
2,272,867
Net revenues
5,083,812
4,976,090
4,698,719
4,387,889
Cost of goods sold
3,200,502
3,131,876
2,898,215
2,683,673
Gross profit
1,883,310
1,844,214
1,800,504
1,704,216
Selling, general and administrative expenses
1,410,711
1,355,580
1,298,239
1,252,118
Operating income
472,599
488,634
502,265
452,098
Interest (income) expense, net
688
627
62
(584)
Earnings before income taxes
471,911
488,007
502,203
452,682
Income taxes
166,524
177,939
193,349
173,780
Net earnings
$ 305,387
$ 310,068
$ 308,854
$ 278,902
Williams-Sonoma, Inc.
BALANCE SHEET
Fiscal Years 2016, 2015, 2014, 2013
(In thousands)
FY 2016
FY 2015
FY 2014
FY 2013
ASSETS
Current assets
Cash and cash equivalents
$ 213,713
$ 193,647
$ 222,927
330121
Restricted cash
—
—
—
14289
Accounts receivable, net
88,803
79,304
67,465
60,330
Merchandise inventories, net
977,505
978,138
887,701
813,160
Prepaid catalog expenses
23,625
28,919
33,942
33,556
Prepaid expenses
52,882
44,654
36,265
35,309
Deferred income taxes, net
—
—
130,618
121,486
Other assets
10,652
11,438
13,005
10,852
Total current assets
1,367,180
1,336,100
1,391,923
1,419,103
Property and equipment, net
923,283
886,813
883,012
849,293
Deferred income taxes, net
135,238
141,784
4,265
13,824
Other assets, net
51,178
52,730
51,077
54,514
Total assets
$ 2,476,879
$ 2,417,427
$ 2,330,277
2,336,734
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable
$ 453,710
$ 447,412
$ 397,037
404791
Accrued salaries, benefits and other liabilities
130,187
127,122
136,012
138,181
Customer deposits
294,276
296,827
261,679
228,193
Income taxes payable
23,245
67,052
32,488
49,365
Current portion of long-term debt
—
—
1,968
1,785
Other liabilities
59,838
58,014
46,764
38,781
Total current liabilities
961,256
996,427
875,948
861,096
Deferred rent and lease incentives
196,188
173,061
166,925
157,856
Long-term debt
1,968
Other long-term obligations
71,215
49,713
62,698
59,812
Total liabilities
1,228,659
1,219,201
1,105,571
1,080,732
Stockholders’ equity
Preferred stock: $.01 par value; 7,500 shares
authorized; none issued
—
—
—
0
Common stock: $.01 par value; 253,125 shares
authorized;
87,325 and 89,563 shares issued and outstanding at
873
896
919
941
January 29, 2017 and January 31, 2016, respectively
Additional paid-in capital
556,928
541,307
527,261
522,595
Retained earnings
701,702
668,545
701,214
729,043
Accumulated other comprehensive loss
(9,903)
(10,616)
(2,548)
6524
Treasury stock – at cost: 20 and 29 shares as of January
29, 2017 and January 31, 2016, respectively
(1,380)
(1,906)
(2,140)
(3,101)
Total stockholders’ equity
1,248,220
1,198,226
1,224,706
1,256,002
Total liabilities and stockholders’ equity
$ 2,476,879
$ 2,417,427
$ 2,330,277
2,336,734
Explanation / Answer
Particulars
2016
2015
2014
1. Current Ratio:
Current Assets / Current Liabilities
Current Assets / Current Liabilities
Current Assets / Current Liabilities
Current Assets
1,367,180
1,336,100
1,391,923
Current Liabilities
961,256
996,427
875,948
Current Ratio
1367180 / 961256 = 1.422
1.34
1.589
2. Acid test ratio
(Cash + Accounts Receivable + Short term Investments) / Current Liabilities
Liquid Assets
213713+88803 = 302,516
193647 + 79304 = 272,951
222927 + 67465 = 290,392
Current Liabilities
961,256
996,427
875,948
Acid test ratio
0.3147
0.2739
0.3315
3. receivables turnover
Net Credit Sales/ Average Receivables
Net Credit Sales(Assumed all sales is on credit)
5,083,812
4,976,090
4,698,719
Average Receivables
(88803 + 79304) / 2 = 84,054
(79,304 + 67465) / 2 = 73,385
(67465+ 60330) / 2 = 63,898
Receivables turnover
60.48
67.808
73.534
4. inventory turnover
Cost of goods sold / Average Stock
COGS
3,200,502
3,131,876
2,898,215
Average Stock
977505+978138 / 2 = 977,822
978138+887701 / 2 = 932,920
887701+813160 / 2 = 850,431
Inventory Turnover
3.273
3.357
3.40
5. asset turnover
Net Sales / Average total assets
Sales
5,083,812
4,976,090
4,698,719
Average Assets
2476879 + 2417427 / 2 = 2447153
2417427 + 2330277 / 2 = 2373827
2330277 + 2336724 / 2 = 2333,501
Asset turnover
2.07
2.096
2.0135
6. Profit margin
Net Profit / Sales
Net Profit / Sales
Net Profit / Sales
Net Profit
305,387
$ 310,068
$ 308,854
Sales
5,083,812
4,976,090
4,698,719
Profit Margin
6.00%
6.23%
6.57%
7. rate of return on assets,
Profit / Average Assets
Profit
305,387
$ 310,068
$ 308,854
Average Assets
2476879 + 2417427 / 2 = 2447153
2417427 + 2330277 / 2 = 2373827
2330277 + 2336724 / 2 = 2333,501
Rate on assets
12.479%
13.06%
13.23%
8. Return common stock equity
Net Profits / Common Stock
Profits
305,387
$ 310,068
$ 308,854
Common Stock
1,248,220
1,198,226
1,224,706
Return
24.46%
25.87%
25.21%
9. earnings per share,
Profits available for shareholders / Outstanding shares
Profit
305,387
$ 310,068
$ 308,854
Outstanding stock
87,325
89,563
91,900 (Approx).
EPS
3.49
3.46
3.36
10. payout ratio
Cannot be determined since dividends amount is not given in question
11. debt to total assets ratio,
Total Debt / Assets
Debt
1,228,659
1,219,201
1,105,571
Total Assets
2,476,879
2,417,427
2,330,277
Debt assets ratio
0.496
0.504
0.4744
Particulars
2016
2015
2014
1. Current Ratio:
Current Assets / Current Liabilities
Current Assets / Current Liabilities
Current Assets / Current Liabilities
Current Assets
1,367,180
1,336,100
1,391,923
Current Liabilities
961,256
996,427
875,948
Current Ratio
1367180 / 961256 = 1.422
1.34
1.589
2. Acid test ratio
(Cash + Accounts Receivable + Short term Investments) / Current Liabilities
Liquid Assets
213713+88803 = 302,516
193647 + 79304 = 272,951
222927 + 67465 = 290,392
Current Liabilities
961,256
996,427
875,948
Acid test ratio
0.3147
0.2739
0.3315
3. receivables turnover
Net Credit Sales/ Average Receivables
Net Credit Sales(Assumed all sales is on credit)
5,083,812
4,976,090
4,698,719
Average Receivables
(88803 + 79304) / 2 = 84,054
(79,304 + 67465) / 2 = 73,385
(67465+ 60330) / 2 = 63,898
Receivables turnover
60.48
67.808
73.534
4. inventory turnover
Cost of goods sold / Average Stock
COGS
3,200,502
3,131,876
2,898,215
Average Stock
977505+978138 / 2 = 977,822
978138+887701 / 2 = 932,920
887701+813160 / 2 = 850,431
Inventory Turnover
3.273
3.357
3.40
5. asset turnover
Net Sales / Average total assets
Sales
5,083,812
4,976,090
4,698,719
Average Assets
2476879 + 2417427 / 2 = 2447153
2417427 + 2330277 / 2 = 2373827
2330277 + 2336724 / 2 = 2333,501
Asset turnover
2.07
2.096
2.0135
6. Profit margin
Net Profit / Sales
Net Profit / Sales
Net Profit / Sales
Net Profit
305,387
$ 310,068
$ 308,854
Sales
5,083,812
4,976,090
4,698,719
Profit Margin
6.00%
6.23%
6.57%
7. rate of return on assets,
Profit / Average Assets
Profit
305,387
$ 310,068
$ 308,854
Average Assets
2476879 + 2417427 / 2 = 2447153
2417427 + 2330277 / 2 = 2373827
2330277 + 2336724 / 2 = 2333,501
Rate on assets
12.479%
13.06%
13.23%
8. Return common stock equity
Net Profits / Common Stock
Profits
305,387
$ 310,068
$ 308,854
Common Stock
1,248,220
1,198,226
1,224,706
Return
24.46%
25.87%
25.21%
9. earnings per share,
Profits available for shareholders / Outstanding shares
Profit
305,387
$ 310,068
$ 308,854
Outstanding stock
87,325
89,563
91,900 (Approx).
EPS
3.49
3.46
3.36
10. payout ratio
Cannot be determined since dividends amount is not given in question
11. debt to total assets ratio,
Total Debt / Assets
Debt
1,228,659
1,219,201
1,105,571
Total Assets
2,476,879
2,417,427
2,330,277
Debt assets ratio
0.496
0.504
0.4744
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