Transcript S&S Air - Weebly

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
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.