SS Air Presented by Kaneisha Hamilton SS Air
S&S Air Presented by Kaneisha Hamilton
S&S Air Background Was founded 10 years ago by Mark Sexton and Todd Story. Manufactures and sells light planes. The company has two major model planes The Birdie $53, 000 The Eagle $78, 000 Builds planes to order ( about 5 weeks )
S&S Air Financial Statements Balance Sheet for S&S Air, Inc. Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Net plant and equipment Total Assets Liabilities & Equity Accounts Payable Notes payable Total Current liabilities Long term debt Shareholders equity common stock Retained earnings Total Equity Total liabilities and equity 280, 800 505, 200 566, 400 1, 352, 400 8, 673, 600 10, 026, 000 596, 400 1, 207, 200 1, 803, 600 3, 114, 000 120, 000 4, 988, 400 5, 108, 400 10, 026, 000 Income Statement Sales COGS Other Exp. Depreciation EBIT Interest Taxable Income Taxes (40%) Net Income Dividends Add. To RE 15, 444, 000 10, 884, 000 1, 845, 600 504, 000 2, 210, 400 277, 800 1, 932, 600 773, 040 1, 159, 560 347, 868 811, 692
S&S Air Financial Ratios Median 75% Current Ratio 1. 43 1. 89 Quick Ratio 0. 36 0. 62 Cash Ratio 0. 21 0. 39 Total Asset Turnover 0. 85 1. 38 Total Debt Ratio 0. 52 0. 61 Debt-Equity Ratio 1. 08 1. 58 Equity Multiplier 2. 08 2. 56 Times Interest Earned 8. 06 9. 83 Cash Coverage Ratio 8. 43 10. 27 Profit Margin 0. 0698 0. 0987 Return on Assets 0. 1053 0. 1321 Return on Equity. 1654 0. 2615 S&S Air 0. 75 0. 44 0. 155 1. 54 0. 49 0. 96 1. 96 7. 95 9. 77 8% 12% 23%
New Ratio (Inventory) Mark and Todd created a ratio for inventory. Inventory / Current Liabilities 566, 400 / 1, 803, 600 =. 314 It would be less than the median in the industry This all implies that S&S Air has less inventory than the median of the industry, but more accounts receivable. Lacks relevance
Boeing Co. Aspirant? Produce commercial planes (747 and 787 Dreamliner) Involved with producing products for the Department of Defense and Space Programs. Mark and Todd cannot use Boeing as an aspirant company in its ratio analysis Size difference between the companies is great. Boeing offers more than just the basic commercial aircraft
S&S Air Growth The Internal Growth Rate of S&S Air . 0917 or 9. 17% This is how much the company can grow without outside financing of any kind. Sustainable Growth Rate . 1919 or 19. 19% This means that the company can grow 19%, until it has to borrow more money.
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