Cartwright Lumber Co.

Harvard Business School Case #204-126

Case Software #XLS48

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ermission of Harvard Business School.

Exhibit 1

Operating Statements for Years Ending December 31, 20012003, and for First Quarter 2004 (thousands of dolla

2001
Net sales
Cost of goods sold
Beginning invent
Purchases
Ending inventory
Total cost of goo
Gross profit
Operating expenseb
Interest expense
Net income before taxe
Provision for income ta
Net income

2002

2003

$1,697

$2,013

$2,694

183
1,278
$1,461
239
$1,222
$475
425
13
$37
6
$31

239
1,524
$1,763
326
$1,437
$576
515
20
$41
7
$34

326
2,042
$2,368
418
$1,950
$744
658
33
$53
9
$44

2004
$3,600
19.94%
418
2,933
$3,351
553
$2,798
$802
700
42
$60
10
$50

First Quarter 2003

$698
326
$326

$7

Source: Case author.

a

In the first quarter of 2003 sales were $698,000 and net income was $7,000.

Operating expenses include a cash salary for Mark Cartwright of $75,000 in 2001, $85,000 in 2002, $95,000 in 2003, and $22,000 in the first quarter of 2004
Cartwright also received some of the perquisites commonly taken by owners of privately held businesses.
b

8.25
6.25
565.95
580.45

55
25
$1,617

arter 2004 (thousands of dollars)

0.2590943
First Quarter 2004
$718
22.50% 0.186211 0.338301 0.0286533
3191.1111111111
100%
418
660 2933.3333 0.1924883 0.339895
$1,078
556
$522
$196
175
0.2117647 0.2776699
10
0.5384615
0.65
$11
2
$9

nd $22,000 in the first quarter of 2004.

$698

1.0286533
$718

Exhibit 2

Balance Sheets at December 31, 20012003, and March 31, 2004 (thousands of dollars)

2001

2002

2003

2004

First Quarter 2004

Caja
Cuentas por cobrar, neto
Existencias
Activo circulante
Propiedades, neto
Total Activo

$58
171
239
$468
126
$594

$48
222
326
$596
140
$736

$41
317
418
$776
157
$933

$50
432
553
$1,035
175
$1,210

$31
345
556
$932
162
$1,094

Pagars, banco
Pagars, Stark
Pagars, comerciales
Cuentas por pagar
Gastos devengados
Deuda a largo plazo, parte corriente
Pasivo corriente
Deuda a largo plazo
Total pasivo
Patrimonio neto
Total pasivo y patrimonio neto

$ -105
-124
24
7
$260
64
$324
270

$146
--192
30
7
$375
57
$432
304

$233
--256
39
7
$535
50
$585
348

$347
--368
50
7
$772
43
$815
395

$247
-157
243
36
7
$690
47
$737
357

$594

$736

$933

$1,210

$1,094

7.7
13
5.3

6.93
20
13.07
8.95%

6.16
33
26.84
11.52%

Source: Case author.

0.0733333
324
13
0.04012346
105
124
24
7
64

432
585
20
33
0.0462963 0.0564103
146
192
30
7
57

233
256
39
7
50

$87
56
64

0.11472103
0
0
11%
11%

0.0887671233
0
0
11%
11%

0.0494285714
0
0
11%
11%

347
157
243
36
7
43

10.50%
0
0
0
11%
11%

Net Working Capital:

Accounts Receivable
Plus: Inventory
Less: Accounts Payab
Net Working Capital

2001
171
239
148
262

2002
222
326
222
326

2003
317
418
295
440

$87

$14
157
$171

$404

737
10
0.0135685
26.73

0.77
5.5
33
12.96

0.77
6.27
20

0.3982906 0.0456923
0.4376068
0
0.0666667
0
0.0119658 0.0013162
0.0854701 0.0094017
0.0564103

$181

$261

$255

0.88

0.72

0.67

31.24

91.28

294.43

5.19

0.77
7.04
13

36.435

0.77
4.73
41.935

Interest rate
Income tax rate

2001
4.0%
17.0%

2002
4.6%
17.0%

2003
5.6%
17.0%

2004
5.1%
17.0%

Debt
Equity
TOTAL LIAB+EQUITY

324.00
270.00
594.00

432.00
304.00
736.00

585.00
348.00
933.00

815.00
395.00
1,210.00

Margen bruto
- Gastos operativo
EBITDA
- Depreciacin
EBIT
- Interest expense
Earnings before tax
- Income tax
Earnings after tax

475.00
425.00
50.00
6.30
43.70
13.00
30.70
5.22
25.48

576.00
515.00
61.00
7.00
54.00
20.00
34.00
5.78
28.22

744.00
658.00
86.00
7.85
78.15
33.00
45.15
7.68
37.47

801.67
700.00
101.67
8.75
92.92
41.94
50.98
8.67
42.31

Margen de rentabilidad
ROE
ROA
ROIC

Ratio
1.50%
9.44%
4.29%
6.11%

Ratio
1.40%
9.28%
3.83%
6.09%

Ratio
1.39%
10.77%
4.02%
6.95%

Ratio
1.18%
10.71%
3.50%
6.37%

1.80
0.88
0.22
0.55
1.20
2.2x
3.36
3.85
10.24

1.59
0.72
0.13
0.59
1.42
2.4x
2.70
3.05
15.33

1.45
0.67
0.08
0.63
1.68
2.7x
2.37
2.61
22.76

1.34
0.62
0.06
0.67
2.06
3.1x
2.22
2.42
24.20

9.92
5.11
3.63
13.47
2.86

0.22
4.41
3.38
14.38
2.74

0.13
4.67
3.47
17.16
2.89

0.12
5.06
3.48
20.57
2.98

Liability and Liquidity Ratios

Razn corriente
Razn de liquidez rpida
Razn de efectivo
Total Debt Ratio
Debt-to-Equity Ratio
Equity Multiplier
Times Interest Earned Ratio
Cash Coverage Ratio
Capital Intensity

Asset Management Ratios

Accrount Receivable Turnover

Inventory Turnover
Current Asset Turnover
PP&E Turnover (Fixed Asset T
Total Asset Turnover

2001
S/.44
S/.6

2002
S/.54
S/.7

2003
S/.78
S/.8

17%
S/.42
S/.171
S/.0
S/.124
S/.0
-S/.47
-S/.6

17%
S/.51
S/.222
S/.171
S/.192
S/.124
S/.17
S/.68

17%
S/.71
S/.317
S/.222
S/.256
S/.192
-S/.31
S/.40

-S/.6

S/.68

S/.40

Activo corriente
Pasivo corriente
INVERSIN EN CAPITAL DE TRABAJO

S/.468
S/.260
S/.208

S/.596
S/.375
S/.13

S/.776
S/.535
S/.20

Inmueble, maquinaria y equipo

Intangibles
INVERSIN EN ACTIVO FIJO E INTANGIBLES

S/.126

S/.140

S/.157

S/.0

S/.14

S/.17

TOTAL INVERSIONES

S/.208

S/.27

S/.37

Financieros netos

-S/.13

-S/.20

-S/.33

-S/.227

S/.21

-S/.30

2002
23.57%
11.11%
0.00%
17%

2003
44.72%
12.14%
0.00%
17%

29.82%

42.79%
29.82%
33.33%
54.84%

Utilidad operativa
Depreciacin
Amortizacin
Tasa de impuesto
EBITDA (after tax)
Cuentas por cobrar ao en curso
Cuentas por cobrar ao anterior
Cuentas por pagar ao en curso
Cuentas por pagar ao anterior
Efecto neto comercial
FCO TOTAL
FCL

FCA

2001
Utilidad operativa
Depreciacin
Amortizacin
Tasa de impuesto
EBITDA (after tax)
Cuentas por cobrar ao en curso
Cuentas por cobrar ao anterior
Cuentas por pagar ao en curso
Cuentas por pagar ao anterior
Efecto neto comercial
FCO TOTAL

17%

54.84%

FCL
Activo corriente
Pasivo corriente
INVERSIN EN CAPITAL DE TRABAJO

27.35%
44.23%

30.20%
42.67%

Inmueble, maquinaria y equipo

Intangibles

11.11%
0.00%

12.14%
0.00%

INVERSIN EN ACTIVO FIJO E INTANGIBLES

TOTAL INVERSIONES
Financieros netos
FCA

53.85%

65.00%

2004
S/.93
S/.9
17%
S/.84
S/.432
S/.317
S/.368
S/.256
-S/.3
S/.81
S/.81
S/.1,035
S/.772
S/.22
S/.175
S/.18
S/.40
-S/.42
-S/.1

0.50
2004
18.90%
11.46%
0.00%
17%

2005
23.57%
10.16%
0.00%
17%

2006
22.10%
9.46%
0.00%
17%

2007
19.31%
8.70%
0.00%
17%

2008
18.13%
7.99%
0.00%
17%

2009
16.65%
7.35%
0.00%
17%

2010
15.27%
6.76%
0.00%
17%

2011
14.06%
6.22%
0.00%
17%

36.28%
42.79%
43.75%
33.33%

32.57%
28.85%
37.06%
30.38%

30.70%
28.85%
33.64%
30.38%

28.03%
26.99%
31.55%
26.95%

25.76%
24.31%
28.82%
24.87%

23.72%
22.51%
26.50%
22.97%

21.81%
20.71%
24.40%
21.07%

20.05%
19.02%
22.43%
19.38%

33.38%
44.30%

27.66%
38.35%

25.95%
35.58%

24.06%
32.91%

21.97%
30.15%

20.25%
27.75%

18.62%
25.52%

17.12%
23.47%

11.46%
0.00%

10.16%
0.00%

9.46%
0.00%

8.70%
0.00%

7.99%
0.00%

7.35%
0.00%

6.76%
0.00%

6.22%
0.00%

27.08%

36.52%

33.15%

29.09%

27.40%

25.12%

23.04%

21.23%

2012
12.93%
5.72%
0.00%
17%

2013
11.89%
5.26%
0.00%
17%

2014
10.94%
4.84%
0.00%
17%

18.44%
17.50%
20.63%
17.83%

16.96%
16.09%
18.97%
16.39%

15.60%
14.80%
17.44%
15.08%

15.75%
21.58%

14.48%
19.85%

13.32%
18.25%

5.72%
0.00%

5.26%
0.00%

4.84%
0.00%

19.51%

17.94%

16.50%

Utilidad operativa
Depreciacin
Amortizacin
Tasa de impuesto
EBITDA (after tax)
Cuentas por cobrar ao en curso
Cuentas por cobrar ao anterior
Cuentas por pagar ao en curso
Cuentas por pagar ao anterior
Efecto neto comercial
FCO TOTAL

2001
S/.44
S/.6

2002
S/.54
S/.7

17%

17%

-S/.47
-S/.6

S/.51
S/.222
S/.171
S/.192
S/.124
S/.17
S/.68

-S/.6

S/.68

Activo corriente
Pasivo corriente
INVERSIN EN CAPITAL DE TRABAJO

S/.468
S/.260
S/.208

S/.596
S/.375
S/.13

Inmueble, maquinaria y equipo

Intangibles
INVERSIN EN ACTIVO FIJO E INTANGIBLES

S/.126

S/.140

S/.0

S/.14

TOTAL INVERSIONES

S/.208

S/.27

Financieros netos

-S/.13

-S/.20

-S/.227

S/.21

FCL

FCA

S/.42
S/.171
S/.124

COSTOS DE OPORTUNIDAD
Rendimiento libre de riesgo
Beta desapalancado
Rendimiento de mercado
Riesgo pas
Inflacin proyectada
Impuesto a la renta
Costo de la deuda
Deuda relevante
Capital relevante
Beta apalancado
CAPM
WACC
Valor de la empresa segn FCL
Valor de la empresa segn FCA

2.36% http://es.investing.com/rates-bonds/peru-g
0.94 http://pages.stern.nyu.edu/~adamodar/New
11.68% http://www.bvl.com.pe/pubdif/infmen/Ultimo
1.60% http://peru21.pe/economia/peru-tiene-riesg
3.40% http://www.americaeconomia.com/econom
-17.00%
5.70% Notas a los estados financieros 2015
S/.431,669
S/.352,378
1.90
25.04%
13.86%

2003
S/.78
S/.8

2004
S/.93
S/.9

2005
S/.115
S/.10

2006
S/.140
S/.11

2007
S/.167
S/.11

2008
S/.198
S/.12

2009
S/.230
S/.13

17%

17%

S/.71
S/.317
S/.222
S/.256
S/.192
-S/.31
S/.40

S/.84
S/.432
S/.317
S/.368
S/.256
-S/.3
S/.81

17%
S/.103
S/.573
S/.408
S/.504
S/.334
S/.6
S/.110

17%
S/.125
S/.749
S/.526
S/.674
S/.435
S/.17
S/.142

17%
S/.148
S/.958
S/.668
S/.887
S/.552
S/.44
S/.193

17%
S/.174
S/.1,205
S/.831
S/.1,142
S/.690
S/.78
S/.253

17%
S/.202
S/.1,491
S/.1,018
S/.1,445
S/.848
S/.124
S/.326

S/.40

S/.81

S/.110

S/.142

S/.193

S/.253

S/.326

S/.776
S/.535
S/.20

S/.1,035
S/.772
S/.22

S/.1,321
S/.1,068
S/.0

S/.1,664
S/.1,448
S/.0

S/.2,064
S/.1,925
S/.0

S/.2,518
S/.2,505
S/.0

S/.3,028
S/.3,200
S/.0

S/.157

S/.175

S/.193

S/.211

S/.229

S/.248

S/.266

S/.17

S/.18

S/.18

S/.18

S/.18

S/.18

S/.18

S/.37

S/.40

S/.18

S/.18

S/.18

S/.18

S/.18

-S/.33

-S/.42

-S/.57

-S/.76

-S/.98

-S/.125

-S/.157

-S/.30

-S/.1

S/.35

S/.47

S/.76

S/.109

S/.151

://es.investing.com/rates-bonds/peru-government-bonds?maturity_from=110&maturity_to=290
://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html
://www.bvl.com.pe/pubdif/infmen/Ultimo_IB.pdf (Rendimiento geomtrico de los ltimos 3 aos)
://peru21.pe/economia/peru-tiene-riesgo-pais-mas-bajo-2257971
://www.americaeconomia.com/economia-mercados/finanzas/analistas-mantienen-expectativas-de-inflacion-peru-de-34-para-2016

as a los estados financieros 2015

1
S/.110
S/.35

2
S/.125
S/.38

3
S/.149
S/.49

4
S/.171
S/.56

S/.194
S/.62

2010
S/.266
S/.14

2011
S/.303
S/.15

2012
S/.342
S/.16

2013
S/.383
S/.17

2014
S/.425
S/.18

17%
S/.232
S/.1,816
S/.1,229
S/.1,798
S/.1,027
S/.183
S/.415

17%
S/.264
S/.2,180
S/.1,462
S/.2,201
S/.1,226
S/.257
S/.521

17%
S/.297
S/.2,582
S/.1,718
S/.2,655
S/.1,445
S/.346
S/.643

17%
S/.332
S/.3,020
S/.1,995
S/.3,158
S/.1,681
S/.451
S/.783

17%
S/.367
S/.3,492
S/.2,290
S/.3,709
S/.1,935
S/.573
S/.940

S/.415

S/.521

S/.643

S/.783

S/.940

S/.3,592
S/.4,017
S/.0

S/.4,207
S/.4,959
S/.0

S/.4,869
S/.6,030
S/.0

S/.5,574
S/.7,227
S/.0

S/.6,317
S/.8,546
S/.0

S/.284

S/.302

S/.319

S/.336

S/.352

S/.18

S/.18

S/.17

S/.17

S/.16

S/.18

S/.18

S/.17

S/.17

S/.16

-S/.193

-S/.234

-S/.280

-S/.330

-S/.384

S/.204

S/.269

S/.346

S/.436

S/.539

S/.277
S/.73

9
S/.2,402
S/.361

DISTRIBUCIN NORMAL FCL

Media
Desvest
Prob de prueba
z estndar
Probabilidad

-de-34-para-2016

6
S/.217
S/.67

S/.322
S/.298
50,000.00
166.74
100.00%

7
S/.239
S/.70

8
S/.259
S/.72

VA
S/.4,142
S/.882

ANLISIS DE SENSIBILIDAD
10%

EFECTO COMERCIAL

10%

FINANCIEROS NETOS

FCL
S/.940
S/.401
S/.458
S/.515
S/.573
S/.630
S/.687
S/.745

FCA

S/.297
S/.316,256
S/.253,940
S/.228,861
S/.228,616
S/.250,720
S/.299,632
S/.387,844

S/.340
S/.315,771
S/.253,520
S/.228,498
S/.228,302
S/.250,449
S/.299,397
S/.387,641

UTILIDAD OPERATIVA
S/.382
S/.425
S/.467
S/.315,577 S/.315,577 S/.315,752
S/.253,353 S/.253,353 S/.253,504
S/.228,353 S/.228,353 S/.228,484
S/.228,177 S/.228,177 S/.228,290
S/.250,340 S/.250,340 S/.250,438
S/.299,303 S/.299,303 S/.299,388
S/.387,560 S/.387,560 S/.387,633

UTILIDAD OPERATIVA

S/.510
S/.316,136
S/.253,836
S/.228,771
S/.228,538
S/.250,653
S/.299,573
S/.387,794

S/.552
S/.316,827
S/.254,433
S/.229,288
S/.228,985
S/.251,039
S/.299,908
S/.388,083