Essay about Case 1 Ugly Shoes Information

Submitted By Nugenenugent
Words: 463
Pages: 2

Case 1: Ugly Shoes Inc.
For (1) and (2), I indicated that your answer was incorrect by changing it to red font (unless you formatted your table in a way that prevented me from doing this).

(1)

Revenue
-1 point for each incorrect revenue figure
2014:
2013:
2012:
2011:

$26,054,000
$25,578,000
$21,417,000
$20,327,000

The top of the income statement indicated that all data was reported in thousands of
$’s. You needed to either add the 000’s, or indicate that your revenue figures were reported in thousands of $’s.

(2)

Financial ratios
-2 points for each incorrect answer
For future case analyses, please always include your data in a table similar to the one below, with the most recent year starting in the left column.

Gross profit margin
Operating profit margin
Net profit margin
Net return on total assets
Return on stockholder’s equity
Current ratio
Debt-asset ratio
Debt-asset ratio (if convert to %)
Debt-equity ratio
Debt-equity ratio (if convert to %)
Days of inventory
Inventory turnover

2014
54.9%
32.9%
28.9%
40.6%
46.1%
3.0
0.1
11.9%
0.1
13.5%
80.7
4.5

2013
53.1%
30.5%
26.5%
38.9%
44.7%
2.6
0.1
12.9%
0.1
14.8%
74.6
4.9

2012
49.5%
23.6%
19.6%
26.4%
30.8%
2.6
0.1
14.3%
0.2
16.7%
78.3
4.7

2011
43.6%
10.6%
6.6%
10.8%
12.9%
1.4
0.2
16.4%
0.2
19.6%
32.4
11.3

(3)

Summary

Worth 16 points. Partial to full credit given depending on how thorough and accurate your response was.
You should have noted that Ugly Shoes Inc.’s total revenue, i.e. sales, increased from $20.3 million 2011 to $26 million in 2014. You should have explained what each ratio means and what it indicates in terms of the company’s financial performance – profitability, liquidity, debt management, and inventory efficiency. In addition, you should have commented on the