Thursday, July 31, 2014

Financial Analysis- 3PL Company in USA

Ratio Analysis

Year-1
Year-2
Year-3
Year-4
Year-5

Liquidity Ratios

Working capital
$63,730
$67,042
$112,078
$277,342
$592,084

Profitability Ratios

Net Profit Margin (Return on Sales)
5%
8%
9%
10%
11%
Return on Assets
4%
22%
40%
45%
44%
Return on Investment
4%
21%
37%
41%
40%
Return on Equity
5%
28%
44%
45%
42%

Financial Leverage Ratio

Total Debts to Assets
32%
25%
16%
10%
6%
Capitalization Ratio
32%
25%
16%
10%
6%
Debt to Equity
47%
34%
19%
11%
6%
Long-term Debt to Net Working Capital
78%
75%
45%
18%
8%

Efficiency Ratios

Cash Turnover
1.92
7.46
11.39
7.64
5.12
Net Working Capital Turnover
1.92
7.46
11.39
7.64
5.12
Total Asset Turnover
0.80
2.66
4.50
4.51
3.92
Fixed Asset Turnover
1.38
4.45
8.73
15.20
33.03

Benefit to cost ratio

Period
NPV
B/C Ratio
year 1
($143,386.14)
1.05
year 2
($103,576.59)
1.09
year 3
$6,130.97
1.10
year 4
$211,189.08
1.11
year 5
$538,139.66
1.13















Feasibility Analysis

Discounted rate
0.75%
Investment
(150,000)
Period
Net profit
Revenue
Expenses
ROI
NPV
IRR
B/C Ratio
Net profit to
Cost Ratio
year 1
$5,580
122400.00
$116,820.00
5%
($143,386.14)
-96%
1.05
0.05
year 2
$40,712
499992.00
$459,280.00
9%
($103,576.59)
-46%
1.09
0.09
year 3
$113,036
1276836.00
$1,163,800.00
10%
$6,130.97
2%
1.10
0.10
year 4
$212,864
2119644.00
$1,906,780.00
11%
$211,189.08
31%
1.11
0.11
year 5
$341,942
3034008.00
$2,692,066.00
13%
$538,139.66
48%
1.13
0.13

NPV
$538,139.66
IRR
48%
B/C Ratio
1.11
Net profit to Cost Ratio
0.11
Growth rate
8.49%
Net profit Over the period
$714,134


Sensitivity Analysis

NPV over Industry growth rate and discounted rate
$538,139.66
0.25%
0.50%
0.75%
1.00%
1.25%
6.49%
     419,309.81
    412,489.61
        405,779.34
    399,176.96
   392,680.49
7.49%
     486,957.89
    479,220.93
        471,608.77
    464,119.10
   456,749.67
8.49%
     555,327.61
    546,663.71
        538,139.66
    529,752.86
   521,500.79
9.49%
     624,430.81
    614,829.61
        605,383.49
    596,089.55
   586,944.98
10.49%
     694,243.74
    683,695.16
        673,317.04
    663,106.20
   653,059.54
Net Profit over Industry growth rate and discounted rate
$714,134
0.25%
0.50%
0.75%
1.00%
1.25%
6.49%
     576,242.00
    576,242.00
        576,242.00
    576,242.00
   576,242.00
7.49%
     644,822.00
    644,822.00
        644,822.00
    644,822.00
   644,822.00
8.49%
     714,134.00
    714,134.00
        714,134.00
    714,134.00
   714,134.00
9.49%
     784,190.00
    784,190.00
        784,190.00
    784,190.00
   784,190.00
10.49%
     854,966.00
    854,966.00
        854,966.00
    854,966.00
   854,966.00


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