1) Go to http://finance.yahoo.com and get a quote for one company of your choice
ID: 2631540 • Letter: 1
Question
1) Go to http://finance.yahoo.com and get a quote for one company of your choice. On the left column, scroll down and select Income Statement. Write down the annual sales and cost of goods sold for the most recent two years.
Company selected: Under Armor.
2013 2012
Annual Sales 2,332,051 1,834,921
COGS 1,195,381 955,624
2) Select the firm's Balance Sheet. Write down the balances shown for the firm's inventories, accounts receivable, and accounts payable.
2013 2012
Inventories 469,006 319,286
Recievables 248,329 198,575
Acc Payable 299,185 228,766
3) Using the information from parts a and b, calculate its inventory turnover, accounts receivable turnover, and accounts payable turnover. You should show your work!
4) Calculate production cycle, collection cycle, and accounts payable cycle. You should show your work! What is the companys cash conversion cycle? You should show your work!
5) Discuss the results that you receive in one paragraph. Should the company decrease cash conversion cycle? Please explain your answer.
6) In your responses to other students compare the cash conversion cycles of your company with the cash conversion cycle in another students posting. What factors are responsible for these differences? Are these differences firm specific or are they consequences of the nature of the businesses in which these firms operate? Please explain your answers.
Explanation / Answer
please rate:
UnitedHealth Group Inc. (UNH)
The statement of financial position provides creditors, investors, and analysts with information on company's resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company's assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
UnitedHealth Group Inc., Consolidated Statement of Financial Position, Assets
(USD $ in millions)
Source: UnitedHealth Group Inc., Annual Reports
Revenues as Reported
UnitedHealth Group Inc., Income Statement, Revenues
USD $ in millions
Source: UnitedHealth Group Inc. Annual Reports
Current Valuation Ratios
UnitedHealth Group Inc., current price multiples
If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Ratios (Summary)
UnitedHealth Group Inc., long-term (investment) activity ratios
UnitedHealth Group Inc.'s equity turnover deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Cash and cash equivalents 7,276 8,406 9,429 9,123 9,800 Short-term investments 1,937 3,031 2,577 2,072 1,239 Accounts receivable, net of allowances 3,052 2,709 2,294 2,061 1,954 Other current receivables, net of allowances 3,998 2,889 2,255 1,643 1,838 Assets under management 2,757 2,773 2,708 2,550 2,383 Deferred income taxes 430 463 472 403 448 Prepaid expenses and other current assets 930 781 615 541 538 Current assets 20,380 21,052 20,350 18,393 18,200 Long-term investments 19,605 17,711 16,166 14,707 13,311 Property, equipment and capitalized software, net of accumulated depreciation and amortization 4,010 3,939 2,515 2,200 2,140 Goodwill 31,604 31,286 23,975 22,745 20,727 Other intangible assets, net of accumulated amortization 3,844 4,682 2,795 2,910 2,381 Other assets 2,439 2,215 2,088 2,108 2,286 Noncurrent assets 61,502 59,833 47,539 44,670 40,845 Total assets 81,882 80,885 67,889 63,063 59,045Related Questions
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