Liberty Medical Group

Ratio Analysis - Five-Year Trend Analysis

2008 2007 2006 2005 2004

Liquidity Ratios

Current Ratio 0.7 0.7 0.7 0.7 0.8

Quick Ratio 0.6 0.6 0.6 0.6 0.6
Defensive Interval Days 22.3 22.1 22.1 22.2 21.9
Accounts Receivable to Working Capital -0.7 -0.6 -0.7 -0.7 -0.7
Inventory to Working Capital -0.1 -0.1 -0.1 -0.1 -0.1
Long-Term Liabilities to Working Capital -1.7 -1.4 -1.6 -1.7 -1.8
Sales to Working Capital -40.0 -36.0 -39.6 -40.9 -43.2

Activity Ratios

Accounts Receivable Turnover 60.0 60.7 60.7 60.7 61.3

Days Sales in Receivables 6.1 6.0 6.0 6.0 6.0
Inventory Turnover 0.0 0.0 0.0 0.0 0.0
Days Cost of Sales in Inventory 0.0 0.0 0.0 0.0 0.0
Accounts Payable Turnover 0.0 0.0 0.0 0.0 0.0
Days Cost of Sales in Payables 0.0 0.0 0.0 0.0 0.0
Operating Cycle Days 6.1 6.0 6.0 6.0 6.0
Sales to Assets 6.6 6.7 6.8 6.7 6.7
Sales to Net Fixed Assets 19.6 20.2 20.8 20.2 19.6
Percent Depreciation Expense to Fixed Assets 25.2 25.8 26.5 26.3 27.1
Percent Accumulated Depreciation to Fixed Assets 14.8 14.7 14.7 12.9 11.0
Net Fixed Assets to Equity 4.3 4.9 4.8 4.4 4.1

Profitability Ratios
Percent Gross Profit 100.0 100.0 100.0 100.0 100.0
Percent Profit Margin on Sales 0.6 0.7 0.9 1.0 0.9
Percent Rate of Return on Assets 3.7 4.5 5.9 6.5 6.3
Percent Rate of Return on Equity 47.8 65.8 85.9 85.7 75.2
Price Earnings Ratio 0.0 0.0 0.0 0.0 0.0
Earnings Per Share 0.0 0.0 0.0 0.0 0.0

Coverage Ratios
Debt to Total Assets 0.9 0.9 0.9 0.9 0.9
Percent Owners' Equity 7.8 6.9 6.8 7.6 8.4
Equity Multiplier 12.8 14.5 14.6 13.1 12.0
Debt to Equity 11.8 13.5 13.6 12.1 11.0
Cash Flow to Current Maturities Long Term Debt 1.3 1.3 1.3 1.4 1.3
Times Interest Earned 1.6 1.8 2.0 2.1 2.1
Book Value Per Share 0.0 0.0 0.0 0.0 0.0
Expense to Sales Ratios
Percent Depreciation to Sales 1.5 1.5 1.5 1.5 1.6
Percent Owners' Compensation to Sales 35.3 36.1 37.0 36.8 36.4

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 Ratios

Liquidity Ratios

Current Ratio Current Assets / Current Liabilities

Quick Ratio (Cash + Marketable Securities + Trade Accounts Receivable) / Current

Liabilities

Defensive Interval Days (Cash + Marketable Securities + Trade Accounts Receivable) / ((Operating
Expenses - Other Expenses - Interest Expense - Provision for Income Taxes -
Depreciation Expense) / Days)

Altman Z score - Retail (((Current Assets - Current Liabilities) / Total Assets) * 6.6) + ((Total Equity /
Total Assets) * 3.3) + ((Earnings before Interest and Taxes / Total Assets) *
6.7) + ((Total Equity / Total Liabilities) * 1.0)

Altman Z score - Manufacturing (((Current Assets - Current Liabilities) / Total Assets) * 0.717) + ((Total Equity /
Total Assets) * 0.847) + ((Earnings before Interest and Taxes / Total Assets) *
3.107) + ((Total Equity / Total Liabilities) * 0.42) + ((Sales / Total Assets) *
0.998)

Accounts Receivable to Working Trade Accounts Receivable / (Current Assets - Current Liabilities)
Capital

Inventory to Working Capital Inventory / (Current Assets - Current Liabilities)

Long-Term Liabilities to Working Long Term Liabilities / (Current Assets - Current Liabilities)
Capital

Sales to Working Capital Sales / (Current Assets - Current Liabilities)

Activity Ratios

Accounts Receivable Turnover Sales / Trade Accounts Receivable

Days Sales in Receivables Trade Accounts Receivable / (Sales / Days)

Inventory Turnover Cost of Sales / Inventory

Days Cost of Sales in Inventory Inventory / (Cost of Sales / Days)

Accounts Payable Turnover Cost of Sales / Trade Accounts Payable

Days Cost of Sales in Payables Trade Accounts Payable / (Cost of Sales / Days)

Operating Cycle Days (Inventory / (Cost of Sales / Days)) + (Trade Accounts Receivable / (Sales /
Days))

Sales to Assets Sales / Total Assets

Sales to Net Fixed Assets Sales / (Property and Equipment - Accumulated Depreciation)

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 Ratios

Activity Ratios (cont.)

Percent Depreciation Expense Depreciation Expense / Property and Equipment * 100

to Fixed Assets

Percent Accumulated Accumulated Depreciation / Property and Equipment * 100

Depreciation to Fixed Assets

Net Fixed Assets to Equity (Property and Equipment - Accumulated Depreciation) / Total Equity

Profitability Ratios

Percent Gross Profit ((Sales - Cost of Sales) / Sales) * 100

Percent Profit Margin on Sales Earnings before Taxes / Sales * 100

Percent Rate of Return on Earnings before Taxes / Total Assets * 100

Assets

Percent Rate of Return on Earnings before Taxes / Total Equity * 100

Price Earnings Ratio Stock Price / (Net Income / Outstanding Shares)

Earnings Per Share Net Income / Outstanding Shares

Coverage Ratios

Debt to Total Assets Total Liabilities / Total Assets

Percent Owners' Equity Total Equity / Total Assets * 100

Equity Multiplier Total Assets / Total Equity

Debt to Equity Total Liabilities / Total Equity

Cash Flow to Current Maturities (Net Income + Depreciation Expense) / Current Portion of Long Term Debt
Long-Term Debt

Times Interest Earned Earnings before Interest and Taxes / Interest Expense

Book Value Per Share Total Equity / Outstanding Shares

Expenses to Sales Ratios

Percent Depreciation to Sales Depreciation Expense / Sales * 100

Percent Owners' Compensation Owners Compensation / Sales * 100

to Sales

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 Categories

Balance Sheet

Cash
Includes cash and short term investments with an original maturity less than one year, including restricted cash
Marketable Securities
Includes debt and equity financial instruments including trading securities, securities held to maturity, and securities
available for sale which are intended to be sold in the short term
Trade Accounts Receivable
Includes total accounts receivable, less allowances
Inventory
Includes total inventory, net of any allowance
Prepaid Expenses
Includes cash paid in advance for services or supplies
Current Assets
Sum of all current assets - those assets that are reasonably expected to be realized in cash or sold or consumed
within a year or within the normal operating cycle of the company
Long-Term Investments
Includes investments, not including marketable securities
Property and Equipment
Tangible assets held by a company for use in the production or supply of goods and services, for rental to others, or for
administrative purposes that are expected to provide economic benefit for more than one year
Accumulated Depreciation
The cumulative amount of depreciation and amortization that has been recognized in the income statement, generally
shown as a deduction from the historical cost of fixed assets
Net Property and Equipment
Property and equipment less accumulated depreciation
Intangible Assets
Assets, excluding financial assets, that lack physical substance, net of accumulated amortization
Other Non-Current Assets
Includes non-current assets not otherwise defined
Non-Current Assets
Sum of all noncurrent assets - those assets that are not reasonably expected to be realized in cash or sold or consumed
within a year or within the normal operating cycle of the company
Notes Payable
Includes written promises to pay, the portions of which are due one year or less in the future
Trade Accounts Payable
Recurring obligations of a business that arise from the acquisition of merchandise, materials, supplies and services
used in the production and/or sale of goods and services
Compensation
Includes unpaid obilgations of regular compensation received by employees as a condition of employment
Other Accrued Liabilities
Includes obligations for expenses that have been incurred, but not yet paid
Income Taxes Payable
Includes unpaid obligation of all income taxes
Current Portion of Long-Term Debt
The sum of all debt which is due within one year or less
Other Current Liabilities
Includes current liablities not otherwise defined

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 Categories

Balance Sheet (cont.)

Current Liabilities
Total obligations incurred as part of normal operations that are expected to be repayed during the following year
Long-Term Debt
Includes notes and obligations that provide for repayment over a term longer than one year
Deferred IncomeTaxes
Includes the long-term effect on income taxes attributable to taxable temporary differences
Other Long-Term Liabilities
Includes long-term liabilities not otherwise defined
Long-Term Liabilities
Total obligations incurred as part of normal operations that are expected to be repayed beyond one year or one
business cycle
Capital Stock
Includes securities representing an ownership interest in a company
Additional Paid-In Capital
Includes amounts received at issuance in excess of the par or stated value of capital stock and amounts received from
other transactions involving the company's stock or stockholders
Retained Earnings
Includes the undistributed earnings of a company
Treasury Stock
Includes shares of a company that have been repurchased by a company
Other Equity
Includes equity not otherwise defined

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Statement of Income

Sales
Includes revenues arising from the sale of goods and/or rendering of services in the normal course of business,
reduced by sales adjustments, sales returns and allowances, and sales discounts
Cost of Sales
Includes costs incurred to produce goods for sale and/or to deliver services and may include direct materials, direct labor,
overhead and depreciation
Gross Profit
Sales less cost of goods and/or services sold
Owners Compensation
Expenditures for salaries of officers
Depreciation Expense
Includes the amount of expense charged against earnings by a company to write off the cost of property or equipment
over its useful life
Selling Expenses
Includes expenses directly related to the selling of products or services
Other Operating Expenses
Includes operating expenses not otherwise defined
Operating Expenses
Generally recurring costs associated with normal operations and currently chargeable against revenue except for the
portion of said expenses which can be clearly related to production
Operating Profit
Gross profit less operating expenses
Other Income
Includes revenue from non-operating activity
Other Expenses
Includes expenses from non-operating activity
Earnings before Interest and Taxes
Sum of operating profit and non-operating income and expenses
Interest Expense
Includes interest expense on deposits, long-term debt and all other borrowings
Earnings before Taxes
Sum of operating profit and non-operating income and expenses, including interest expenses
Provision for Income Taxes
Provision for all current and deferred income taxes
Net Income
All income less all expenses

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70 Financial Analysis CS: Sample Reports