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    6 Holly Fashion Case Study

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    Caramalau Mirela-Georgiana
    This document contains financial statements and ratios for a company from 1993-1996 compared to industry averages for that period. Sales, costs, and profits increased each year. Total assets also increased with fixed assets growing the most. Current and long-term liabilities decreased while equity increased. Liquidity, leverage, activity, and profitability ratios were all favorable compared to industry averages, indicating strong financial performance.

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    6 Holly Fashion Case Study

    Uploaded by

    Caramalau Mirela-Georgiana
    2K views3 pages
    This document contains financial statements and ratios for a company from 1993-1996 compared to industry averages for that period. Sales, costs, and profits increased each year. Total assets also increased with fixed assets growing the most. Current and long-term liabilities decreased while equity increased. Liquidity, leverage, activity, and profitability ratios were all favorable compared to industry averages, indicating strong financial performance.

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    This document contains financial statements and ratios for a company from 1993-1996 compared to industry averages for that period. Sales, costs, and profits increased each year. Total assets also increased with fixed assets growing the most. Current and long-term liabilities decreased while equity increased. Liquidity, leverage, activity, and profitability ratios were all favorable compared to industry averages, indicating strong financial performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    2K views3 pages

    6 Holly Fashion Case Study

    Uploaded by

    Caramalau Mirela-Georgiana
    This document contains financial statements and ratios for a company from 1993-1996 compared to industry averages for that period. Sales, costs, and profits increased each year. Total assets also increased with fixed assets growing the most. Current and long-term liabilities decreased while equity increased. Liquidity, leverage, activity, and profitability ratios were all favorable compared to industry averages, indicating strong financial performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 3

    1993 1994 1995 1996

    Sales 985 1040 1236 1305.1


    Cost of goods 748.6 774.8 928.2 978.8
    Gross margin 236.4 265.2 307.8 326.3
    Administrative 169.4 202.8 236.1 249.3
    Depreciation 10.8 11.4 13.6 14.4
    EBIT 56.2 51 58.1 62.6
    Interest 7 6 5 4
    EBT 49.2 45 53.1 58.6
    Taxes 19.7 18.0 21.2 23.4
    Net income 29.5 27.0 31.9 35.2

    1993 1994 1995 1996


    ASSETS
    Cash 40.4 51.9 38.6 10.6
    Receivables 153.2 158.9 175.1 224.8
    Inventory 117 121.1 193.4 191.9
    Other current assets 5.9 6.2 7.4 7.8
    Current assets 316.5 338.1 414.5 435.1
    Gross fixed 44.8 58.9 78.1 96.4
    Accumulated depreciation 12 23.4 37 51.4
    Net fixed 32.8 35.5 41.1 45
    Total assets 349.3 373.6 455.6 480.1

    LIABILITIES & NET WORTH


    Accounts payable 53.8 54.7 86.2 84.2
    Debt due 10 10 10 10
    Accruals 19.7 26 24.7 26.1
    Current liabilities 83.5 90.7 120.9 120.3
    Long-term debt 60 50 40 30
    Common stock 150 150 180 180
    Retained earnings 55.8 82.8 114.6 149.8
    Total L&NW 349.3 373.5 455.5 480.1
    1993 1994 1995 1996 Industry average 1993-1996
    liquidity ratios
    current 3.8 3.7 3.4 3.6 2.6 1.7
    quick 2.4 2.4 1.8 2.0 1.6 0.8
    leverage ratios
    debt% 41% 38% 35% 31% 41% 57%
    times interest earned 8.0 8.5 11.6 15.7 7.4 3.9
    activity ratios
    inventory turnover 8.4 8.6 6.4 6.8 8.1 6
    fixed assets turnover 30.0 29.3 30.1 29.0 40 25
    total assets turnover 2.8 2.8 2.7 2.7 3.5 2.8
    average collection period 56 55 51 62 41 50
    day purchases outstanding ( 26 25 33 31 18 25
    profitability ratios
    gross margin 24.0% 25.5% 24.9% 25.0% 28 26
    net profit margin 3.0% 2.6% 2.6% 2.7% 4.2 3.1
    return on equity 14.3% 11.6% 10.8% 10.7% 27.3 19.5
    return on total assets 8.5% 7.2% 7.0% 7.3% 11.8 8.7
    operating margin 6.8% 6.0% 5.8% 5.9% 9.9 7.2

    ROE
    PN/A 8.45% 7.23% 6.99% 7.32%
    A/CPR 1.70 1.60 1.55 1.46
    DAT/A 41.08% 37.66% 35.32% 31.31%

    Effective cost of passing up discounts 18.18%

    price per share 55 65


    no of shares 5000
    average price 60
    BV 65.96
    MBR 0.909642
    verage 1993-1996

    1.3
    0.6

    71%
    1.3

    3.5
    12
    2
    68
    32

    24
    1.2
    7.8
    3.4
    3.1

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