Running Head: Finance for Managers 1

Paper on

Finance for Managers

By XxX

Dated:
Finance for Managers 2

Task 1

1.1 Determine what financial information is needed and assess its validity

The reports of finance are deemed to be useless, if they are based on data that is inaccurate and

unreliable. It can also be observed that each statement or record has its unique significance and

since these are a part of a greater whole they tend to convey a larger meaning. It can therefore be

understood that the factors behind each of the subparts ae equally important as the whole

combined meaning.

The data and internal control mechanisms needs to be listed in order to find the true pivot of this

problem. Final accounts are not actually a complete set of transactions that occur inside an

organization during an accounting period. It is the potential analysis that highlights the summary

of operations and non-operations that happened with the organization as a whole (Morningstar,

2017).

The parts that are essential in making an organization worthwhile and the reports of its financial

information significant, if these reports are potentially lacking any elements that exist in the

income statement, balance sheet of cash flow statement that should potentially exist in the place.

It can be considered as a shower of mishap and the information, even if it is correct would not be

reliable. This is the potential response developed for this sake and the making of this

corresponding result an equal statement that could lead to conclusions that could lead both the

investor and the organization in vain and thus make the response of this matrix void.

It can thus be concluded that the organization must be sure to include every element of the mix

into its finally generated reports, furthermore the results could be disregarded if any one of the
 Finance for Managers 3

items discussed above are left unchecked. Thus the organization must make sure that all the

elements of the potential reports are discussed and therefore providing the complete picture.

1.2 Analyze different financial documents and information and formulate conclusions about

financial performance levels and needs of stakeholders

The company chosen here is Barclays bank PLC. It is one of the largest banking group of the

world. It even sets rates for commodities and currencies alike. The different financial documents

that it has published with its most recent report are the Balance Sheet, income statement,

Statement of changes in equity and cash flow statement.

In the income statement it is seen that the total revenues are increasing and that is based on

decreasing interest costs and decreasing interest revenues. The proportion of decrease in the

above discussed costs is far more that the decrease in the revenues. The total income is

decreasing for the company and this is not a good sign. The operating expenses are also

decreasing, but here the slope of income is more than the slope of operating expenses. The profit

before taxes is the is also decreasing. This is truly alarming and it can be said that the potential

earning per share is also experiencing a decline.

The balance sheet for Barclays bank is depicting an improvement in cash but the total assets of

the company are being reduced, the reason is the new chairman and in terms of liabilities and

equity it is seen that the liabilities are decreasing and the equity for the bank is increasing,

indicating that the bank is moving towards equity financing.

The Third report that is prepared by the company is Statement of changes in equity. This depicts

that the most portion is going in form of dividends, indicating that the company is trying

desperately to improve its worth in terms of its share value. Retained Earnings has decreased.
The final report when discussing the final reports is the cash flow statement. It shows the trends

that the operating cash flow has improved a lot in 2015 and from being negative it has improved

to become positive. This indicates the improvement of operations of the company. Furthermore,

investing cash flow has become negative, which is also a good sign as the company is investing
 Finance for Managers 4

in new assets in order to generate more profit. Financing cash flow has become negative and it

can be seen that though it has been reduced as compared to the previous year it can be said that

the overall financing assets are improving.

1.3 Conduct comparative analysis of financial information and data
On analysis of the comparative information it can be observed that the net margin of the

company is negative since 2013 and is still decreasing. Return on Assets and Return on Equity is

also decreasing. It can also be observed that the growth in revenue is positive, further it can be

observed that the operating income, the net income and EPS is either negative or showing no

trends at all.
The debt to equity is reducing indicating the fact that the company is moving towards equity

financing. The financial leverage is also decreasing showing similar trends. The Asset Turnover

and the P/E ratio has significantly increased contributing to the fact that the company is

successfully increasing prices of its common shares. The dividend yield in this case is decreasing

as well. But in order to evaluate the potential diagnostics the components that need replacement

are the revenue generating sourcing. Since it is reducing rapidly, it can be observed that the

potential benefits of the whole organization are radically decreasing.

1.4 Critically review and question financial information and data
The appointment of a new Chairman clearly indicates that the bank is in crisis. Further it can be

stated that the potential direction of the bank is going south. There are several questionable

practices that are disclosed in the annual report, namely the foreign currency translation and the

executives remuneration. Both of these are a part of question. It can be seen that the potential

target of this scenario aids all of the executive staff. The potential of this extends far beyond the

domains of mismanagement. This is the reason for the new chairman and the decreasing

monetary trends of the company. It is also observed that the compensation in this regard is

further moving towards chaos.

Task 2
Finance for Managers 5

2.1 Identify how a budget can be produced taking into account financial constraints and

achievement of targets and accounting conventions.

It can be seen that the budget is a method of forecasting that tends to produce a company that

makes a lot with these potential plan. It denotes the overall financial plan of the organization

denoting all the funds available and all the expenditures that are expected to occur during that

phase of time. A budget normally tends to depict the future aims of the business along with the

vision of the department in terms of its mission and vision. A good and objective budget can be

stated as to be SMART, because if a budget lacks any of the Specific, Measurable, Achievable,

Realistic and Time bound, it cannot be accomplished or the achievers wont know that it has

already been achieved, therefore, it would be ineffective.

When discussing the potential of the company under analysis, Barclays Bank, it can be observed

that the primary objective is at least facilitate the potential income to be consistent. Reduction in

terms of profit is a devastation that lacks the potential trend of growth. The budget should, thus

provide for the strategic vision of the organization. After setting the budget it must be ensured

that the respective accounting conventions are followed and all the constraints of the

organization have been successfully averted. There enters the limiting constraint, this constraint

is the primary factor in limiting the potential of the organization and thus if averted it can result

in a rapid and real growth. Once that limiting factor has been identified the next task of Barclays

bank is to find the factors that are contributing to that factor and if those factors are removed

with their limiting constraint, what would be the next limiting factor.

2.2 Be able to assess a budget

Finance for Managers 6

There are numerous categories of a budget and in this budget there are several categories of

planning techniques. The best opted technique depends upon the use of budget, for Barclays

bank the budget would be an interest received budget, interest paid budget, Employee budget,

etc. all these budgets would combine to form a master budget that summarizes whole of the

organization.

The potential change between the budgeted and actual performance is the key here. This gap or

variance can be favorable or unfavorable. It can also be seen that this can be due to various

factors, the most common ones are wrong estimation or unexpected situations. It can be further

seen that the difference can occur due to rate or due to quantity, both of these do arise due to

misestimating variable values.

There are a lot of risk factors involved in this distribution, for Barclays Bank the greatest risk

factor in forming and successfully following a budget is the unpredictable exchange rates. The

bank has suffered a lot in the previous years and is bound to suffer far more in the coming years.

When creating a budget for Barclays bank, a service variance model should be applied as it has

no goods to sell and no commodities to manufacture or trade. This model does measure variance

but in terms of service related functions. These functions or conventions are the ones that make it

hospitable and potential for the direction of clients, lenders, borrowers or employees. Each of

them should have a budget and if there is a budget, there is a variance.

Once the variance is identified, it is the job of the management to find the root or the cause of

this variance. This is the real problem that many management personnel fail to accomplish. In

terms of Barclays Bank the problem is that the interest income is decreasing, this seems to be the

problem either with the lending mechanism or the decreasing interest rates. The expected
Finance for Managers 7

performance may indicate that the bank is going as planned but in reality the variance for it is

increasing every year.

2.3 Identify how a budget for a complex organization can support organizational

objectives and targets whilst taking into account financial constraints and accounting

conventions
It is observed that a complex organization like Barclays Bank itself may seem impossible to plan

ahead. In this situation various budgets are created and in doing so the budget specializes in

specifically one area. Once all the budgets required by the organization are created, a master

budget for the whole bank is created indicating the method of attaining the objectives which are

unique to the circumstance. It can also be seen that the potential targets are attained.
In the master budget, not only the sub budgets are combined but also it makes quite viable option

to lend an entire objective and remake it that is suitable to the bigger picture. The more the

budget is closer to the actual results, or the lesser the variance, the more accurate and reliable it

is.
All the financial constraints and the accounting conventions are generally taken care of the

master budget. But beside this convention it could be assigned to various segments of the

business. It is to be noted that this totally depends upon the business structure and hierarchy. It

can be understood that the procedure of the budget should enable the master budget to look for

constraints of the organization along with following the set conventions of accounting. The

potential and competitive environment of Barclays Bank forces it to apply these procedures from

the first step onto the last.

Task 3

3.1 Identify criteria by which proposals can be judged

Finance for Managers 8

There are various methods that are used to evaluate the proposals that come into the potential and

corresponding strengths and weaknesses. The methods used each is unique, some of them take

into a relative sum of values.

The most common methods that are used to evaluate the proposal are break-even analysis,

Payback Period, NPV (Net Present Value), ROI (Return on Investment), ROCE (Return on

Capital Employed and IRR (Internal Rate of return). All of these are measure of potential project

as well as for a running one.

3.2 Critically analyze the viability of a proposal for expenditure

Break-Even Analysis tells the quantity if sold would be able to meet the potential expenses.

Furthermore, Payback period tells the duration at which breakeven could be attained. When

discussing potential discounted cash flow NPV tells the present value when discounted with the

required rate of return or the cost of capital. ROI and ROCE are the measures that tell the

percentage return on investment and employed capital respectively. IRR tells the discount rate

where NPV becomes zero.

3.3 Identify the strengths and weaknesses of a proposal and give feedback on the

financial proposal

Breakeven is precise on sales but does not take time value or market demand into consideration.

Payback takes into account the duration for return on capital but ignores time value of money.

NPV takes into account the time value but ignores its relativity with initial investment. And IRR

takes into account all the factors pertaining to relativity and time value but it completely ignores

the required rate of return.

Finance for Managers 9

3.4 Analyze the viability of a proposal for expenditure

In order for Barclays Bank to evaluate the proposal of investments it has to use a conjunction of

different measures in order to perceive a complete picture of what is happening. Neither one of

the above is useless and all must be used in order to make a rational investment decision.
Reflective Statement
It can be seen that in the due process of this exercise, it has come to light that the company has a

trend that is going down. It is also seen that the potential direction of the bank is decreasing and

the overall trend of the bank is experiencing a new management along with a new chairman, who

would be an acting executive. This shows that the bank is desperate to get back on its feet.

References
Morningstar. (2017, January 26). Barclays PLC BARC. Retrieved from morningstar.com:

http://financials.morningstar.com/ratios/r.html?t=BARC&region=gbr&culture=en-US
Finance for Managers 10

Appendix

BARCLAYS PLC (BARC) INCOME STATEMENT

Fiscal year ends in December. GBP in TTM 201 201 201 201 2011
millions except per share data. 5-12 4-12 3-12 2-12 -12
Revenue
Interest income
Loans and Leases 152 151 160 168 1762
73 23 81 30 1
Deposits with banks 219 253 392
Securities 138 161 180 172 2137
7 5 4 0
Other assets 541 625 211 396 444
Total interest income 172 173 183 191 2059
01 63 15 99 4
Interest expense
Deposits 110 167 285 273 2897
7 2 7 7
Long-term debt 164 162 374 456 5337
4 2 8 1
Other expense 189 198 110 262 159
2 9
Total interest expense 464 528 671 756 8393
3 3 5 0
Net interest income 125 120 116 116 1220
58 80 00 39 1
Noninterest revenue
Commissions and fees 789 817 873 858 8622
2 4 1 2
Principal transactions 476 465 723 384 9965
1 9 3 2
Equity investment income -590 -435 60
Insurance premium 709 669 732 896 1076
Other income 117 67 186 148 332 1075
06
Total noninterest revenue 117 128 132 168 136 2079
06 39 53 44 52 8
Total net revenue 117 253 253 284 252 3299
06 97 33 44 91 9
Provisions for credit losses 262 211 216 307
6 4 8 1
Noninterest expenses
Compensation and benefits 996 110 121 104 1140
0 05 55 47 7
Tech, communication and equipment 135 410 712 724 7097
3 1 0 3
Advertising and marketing 536
Finance for Managers 11

Amortization of intangibles 617 480 435 419

Other special charges 572 197 236 207 639 6069
1 0 9 1
Other expenses 198 677 344 647 669 2128
16 3 3
Total noninterest expenses 203 212 209 224 251 2712
88 10 09 81 85 0
Income (loss) from cont. ops before - 207 225 289 106 5879
taxes 113 3 6 2
08
Provision (benefit) for taxes 150 145 141 157 482 1928
8 0 1 1
Other income (expense) 123 -672 -769 -781 -665 -944
43
Net income -473 -49 76 540 - 3007
104
1
Preferred dividend 355 275 196
Net income available to common -828 -324 -120 540 - 3007
shareholders 104
1
Earnings per share
Basic - - - 0.03 - 0.23
0.05 0.01 0.01 0.08
Diluted - - - 0.03 - 0.22
0.05 0.01 0.01 0.08
Weighted average shares outstanding
Basic 163 166 163 143 132 1297
27 87 29 08 34 8
Diluted 169 170 166 146 136 1356
43 54 25 68 55 0
Finance for Managers 12

BARCLAYS PLC (BARC) BALANCE SHEET

Fiscal year ends in December. GBP in 2015 2014 2013 2012 2011
millions except per share data. -12 -12 -12 -12 -12
Assets
Cash and due from banks 1011 3969 4568 1456 1812
5 7
Federal funds sold 2818 1317 1867 1769 1536
7 53 79 56 65
Trading assets 7734 1147 1330 1450 1521
8 17 69 30 83
Derivative assets 3277 4399 3243 4691 5389
09 09 35 46 64
Debt securities 1670 1243 1307 1211 1054
97 66 24 70 40
Loans 4454 4753 4755 4758 4793
87 33 22 94 80
Allowance for loan losses - - - -
4921 5455 7258 9676
Net loans 4405 4698 4682 4662 4793
66 78 64 18 80
Receivables 415 334 219 252 374
Premises and equipment 3328 3579 4216 4068 7166
Goodwill 5603 6329 6346 6585
Other intangible assets 2619 1851 1339 1330 7846
Other assets 6612 2549 1128 9811 1166
9 5 9 0 97
Total assets 1120 1357 1312 1490 1563
012 906 267 321 527
Liabilities and stockholders' equity
Liabilities
Deposits 4653 4860 4827 4642 4581
22 94 36 90 17
Federal funds purchased 2503 1244 1967 2173 2072
5 79 48 42 92
Trading liabilities 3396 4512 5346 4479 4588
7 4 4 4 7
Derivative liabilities 3242 4393 3206 4624 5279
52 20 34 68 10
Payables 1151 1244 1293 1223 1258
3 4 4 2 0
Long-term debt 2146 2115 8669 1435 1546
7 3 3 99 06
Other liabilities 1786 1697 1036 9201 1015
46 25 73 0 46
Total liabilities 1060 1298 1256 1436 1507
202 339 882 735 938
Stockholders' equity
Common stock 4201 4125
Finance for Managers 13

Additional paid-in capital 1738 1668 1585 9416 9330

5 4 9
Retained earnings 3102 3171 3318 3746 3937
1 2 6 5 2
Treasury stock -979 -165
Accumulated other comprehensive 7203 7046 6340 7684 7052
income
Total stockholders' equity 5981 5956 5538 5358 5558
0 7 5 6 9
Total liabilities and stockholders' 1120 1357 1312 1490 1563
equity 012 906 267 321 527
Finance for Managers 14

BARCLAYS PLC (BARC) Statement of

CASH FLOW
Fiscal year ends in December. GBP in TTM 201 201 201 201 201
millions except per share data. 5-12 4-12 3-12 2-12 1-12
Cash Flows From Operating
Activities
Provision for credit losses 262 211 216 307
6 4 8 1
Depreciation & amortization 132 127 127 111 110
4 9 4 9 4
Investments (gains) losses -374 -619
Loans 275 368 - 223 383
65 4 678 1 40
3
Other assets and liabilities 277 - - - - -
41 185 204 262 272 216
93 49 82 18 47
Other operating activities - 409 349 354 101 112
791 2 6 6 52 82
9
Net cash provided by operating 224 161 - - - 290
activities 48 28 104 251 137 79
41 74 16
Cash Flows From Investing Activities
Sales/maturity of investments 113 120 694 737 669
048 843 73 69 41
Purchases of investments - - - - -
120 108 920 807 675
251 645 15 96 25
Property, and equipment, net -852 -657 -736 -604 -
145
4
Other investing activities 194 -379 -886 633 532 126
36
Net cash used for investing 194 - 106 - - -
activities 36 843 55 226 709 191
4 45 9 2
Cash Flows From Financing Activities
Long-term debt issued 113 826 700 225 880
8 8
Long-term debt repayment -682 - - - -
110 142 268 400
0 5 0 3
Common stock issued 559 947 97 41
3
Repurchases of treasury stock - - -111 -
165 116 125
5 6 7
Cash dividends paid - - - - -
149 168 167 142 138
Finance for Managers 15

6 8 2 7 7
Other financing activities - 599 -979 -235
669
Net cash provided by (used for) - -441 - 591 - -
financing activities 669 305 0 284 596
8 2 1
Effect of exchange rate changes 769 824 -431 198 - -
6 410 293
9 3
Net change in cash 489 807 - - - 182
11 7 327 417 277 73
5 11 66
Cash at beginning of period 752 784 817 121 149 131
32 79 54 896 673 400
Cash at end of period 124 865 784 801 121 149
143 56 79 85 907 673

Growth Profitability and Financial Ratios

for Barclays PLC
Financials
TTM 201 201 201 201 201 201 200 200 200 200
5- 4- 3- 2- 1- 0- 9- 8- 7- 6-
12 12 12 12 12 12 12 12 12 12
Revenue GBP 24,2 25, 25, 28, 25, 33, 32, 30, 24, 24, 23,
Mil 64 397 333 420 749 033 204 202 183 556 359
Gross Margin %
Operating 1,25 2,0 2,2 2,8 797 5,8 5,7 4,5 5,1 7,0 7,1
Income GBP 0 73 56 68 04 97 85 36 83 33
Mil
Operating 5.2 8.2 8.9 10. 3.1 17. 18 15. 21. 28. 30.
Margin % 1 6 2 2 8 5
Net Income -473 -49 76 540 - 2,9 3,5 9,3 4,3 4,4 4,5
GBP Mil 624 24 64 93 82 21 70
Earnings Per - - - 0.0 - 0.2 0.2 0.7 0.5 0.6 0.6
Share GBP 0.05 0.0 0.0 3 0.0 2 6 5 3 2 4
1 1 5
Dividends 0.06 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.3 0.2
GBP 7 7 7 6 6 4 1 1 6
Payout Ratio % * 282 150 375 19. 15. 4.4 60. 47.
.6 .3 .8 1 8 2 8
Shares Mil 16,9 17, 16, 14, 13, 13, 13, 12, 8,2 7,1 7,0
43 054 625 668 434 330 480 432 02 31 44
Book Value 3.77 3.6 3.6 3.0 4.0 3.9 3.8 3.8 4.0 3.3
Per Share * 9 1 7 4 6 2 2
GBP
Operating 22,4 16, - - - 29, 18, 41, 32, - 10,
Cash Flow 48 128 10, 25, 13, 079 686 844 673 10, 044
GBP Mil 441 174 716 758
Finance for Managers 16

Cap Spending GBP - - - - - - - - - -80

Mil 852 657 736 604 1,4 1,9 1,3 1,5 888
54 84 76 99
Free Cash 21,5 15, - - - 27, 16, 40, 31, - 9,9
Flow GBP Mil 96 276 11, 25, 14, 625 702 468 074 11, 64
098 910 320 646
Free Cash Flow Per 0.0 - - - 1.8 1.2 3.2 3.7 -
Share * GBP 3 2.0 2.4 1.0 4 4 6 9 1.6
8 6 5 3
Working Capital GBP Mil

Key Ratios ->

Profitability
Margins % of TTM 201 201 201 201 201 201 200 200 200 200
Sales 5- 4- 3- 2- 1- 0- 9- 8- 7- 6-
12 12 12 12 12 12 12 12 12 12
Revenue 100 100 100 100 100 100 100 100 100 100 100
COGS
Gross Margin
SG&A 71.2 65. 64. 66. 61. 57. 59. 51. 51. 34. 34.
7 81 53 29 22 33 82 35 73 26 96
R&D
Other 12.7 17. 18 12. 22. 8.1 22. 33. 27. 25. 25.
6 7 81 72 4 18 47 04 5 28
Operating 5.15 8.1 8.9 10. 3.1 17. 18 15. 21. 28. 30.
Margin 6 1 09 57 18 24 84 54
Net Int Inc. & - - - - - - - -
Other 10.8 8.3 8.5 10. 12. 16. 11. 9.2
2 2 6 81 97 96 39 2
EBT Margin 5.15 8.1 8.9 10. 3.1 17. 18 15. 21. 28. 30.
6 1 09 57 18 24 84 54

Profitability TTM 201 201 201 201 201 201 200 200 200 200
5- 4- 3- 2- 1- 0- 9- 8- 7- 6-
12 12 12 12 12 12 12 12 12 12
Tax Rate % 86.0 69. 62. 54. 195 32. 25 23. 13 27. 27.
7 95 54 78 .94 79 42 99 2
Net Margin % - - - 1.9 - 9.1 10. 31. 17. 18 19.
3.41 1.2 0.4 4.1 1 98 1 69 56
8 7 2
Asset 0.01 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Turnover 2 1 2 2 2 2 2 2 2 2
(Average)
Return on - - - 0.0 - 0.2 0.2 0.5 0.2 0.4 0.4
Assets % 0.06 0.0 0.0 4 0.0 5 5 7 8
3 1 7
Financial 20.7 18. 22. 23. 27. 28. 29. 29. 56. 52. 50.
Leverage 1 73 8 69 81 13 29 17 06 7 35
(Average)
Finance for Managers 17

Return on - - - 0.9 - 5.6 7.2 22. 14. 20. 24.

Equity % 1.32 0.5 0.2 9 1.9 5 6 45 59 51 56
4 1 1
Return on Invested
Capital %
Interest Coverage

Key Ratios -> Growth

Late 201 201 201 201 201 201 200 200 200 200
st 5- 4- 3- 2- 1- 0- 9- 8- 7- 6-
Qtr. 12 12 12 12 12 12 12 12 12 12
Revenue %
Year over 3.02 0.2 - 12. - 1.6 7.5 22. 0.2 5.1
Year 5 10. 47 23. 2 2 64 8 2
94 36
3-Year Average 0.1 - - - 10. 9.7 8.9 9.6 20.
4 8.4 4.3 5.7 25 6 4 1 48
4 2 4
5-Year Average -4.8 - 2.9 0.5 7.1 11. 16. 14. 16.
3.4 2 9 5 67 55 66 73
5
10-Year Average 3.1 6.0 8.6 8.3 10. 12. 13. 12. 12.
1 8 3 6 82 58 71 8 4
Operating Income %
Year over - - - 262 - - 32. - - -
Year 67.8 8.1 21. 8.3 98. 3.0 28 24. 14. 0.7
5 1 99 2 7 09 73 1
3-Year Average 169 - - - -0.9 - - 2.1 15.
.42 27. 21. 71. 5.0 13. 1 47
33 88 51 4 7
5-Year Average - - - - - 1.3 - 9.4 17.
19. 13. 13. 56. 3.7 4 0.0 9 18
32 22 7 85 9 7
10-Year Average - - - - 4.9 5.6 6.4 12. 15.
9.5 6.8 2.7 28. 8 5 4 16 24
8 8 9 89
Net Income %
Year over Year - - - 115 - -
85. 15. 62. .67 1.4 3.2
93 63 06 9 5
3-Year Average - - - - 27. 4.2 10.
70. 46. 11. 6.9 15 8 62
65 69 62 3
5-Year Average - - - - 23. 9.7 14.
61. 34. 8.0 1.4 52 1 66
84 13 3 8
10-Year Average - - 1.9 3.7 18. 12. 14.
31. 14. 8 1 25 52 63
34 99
Finance for Managers 18

EPS %
Year over 8 - - 44. - -
Year 15. 65. 54 15. 3.9
79 07 68 8
3-Year Average - - - 5.3 2.4 9.4
48. 24. 24. 8 6 6
01 81 77
5-Year Average - - - 9.8 5.8 14.
41. 19. 11. 4 9 73
09 21 49
10-Year Average - - - 10. 9.9 13.
21. 4.1 3.4 96 7 73
02 7 4

Key Ratios -> Cash Flow

Cash Flow TTM 201 201 201 201 201 201 200 200 200 200
Ratios 5- 4- 3- 2- 1- 0- 9- 8- 7- 6-
12 12 12 12 12 12 12 12 12 12
Operating Cash Flow Growth
% YOY
Free Cash Flow Growth %
YOY
Cap Ex as a % of 3.3 2.5 2.5 2.3 4.4 6.1 4.5 6.6 3.6 0.3
Sales 5 9 9 5 6 6 1 2 4
Free Cash 89 60. - - - 83. 51. 133 128 - 42.
Flow/Sales % 15 43. 91. 55. 63 86 .99 .5 47. 65
81 17 61 42
Free Cash - - - - 22. 9.4 4.6 4.3 7.0 - 2.1
Flow/Net 45.6 311 146 47. 95 5 9 1 9 2.6 8
Income 6 .76 .03 98 3

Key Ratios -> Financial

Health
Balance Late 201 201 201 201 201 201 200 200 200 200
Sheet Items st 5- 4- 3- 2- 1- 0- 9- 8- 7- 6-
(in %) Qtr. 12 12 12 12 12 12 12 12 12 12
Cash & Short- 7.03 4.5 2.9 3.4 5.8 6.9 6.5 5.9 1.5 0.6 0.9
Term 3 2 8 8 5 5 1 4 2 8
Investments
Accounts 0.0 0.0 0.0 0.0 0.0 0.1 0.1
Receivable 4 2 2 2 2 1 2
Inventory
Other Current Assets
Total Current Assets
Net PP&E 0.3 0.2 0.3 0.2 0.4 0.4 0.4 0.2 0.2 0.2
6 2 7 6 1 1 3 4 5
Intangibles 0.57 0.7 0.6 0.5 0.5 0.5 0.5 0.6 0.5 0.6 0.7
3 9 3 8 4 1 8 3
Other Long-Term Assets
Finance for Managers 19

Total Assets 100 100 100 100 100 100 100 100 100 100 100
Accounts Payable 0.0 0.0
8 8
Short-Term Debt
Taxes Payable 0.0 0.0
8 8
Accrued Liabilities
Other Short-Term
Liabilities
Total Current Liabilities
Long-Term 1.78 1.9 1.5 6.6 9.6 9.8 1.9 11. 1.4 1.4 1.3
Debt 2 6 1 4 9 1 85 5 8 8
Other Long-Term
Liabilities
Total 95.1 94. 95. 95. 96. 96. 96. 96. 98. 98. 98.
Liabilities 7 66 61 78 4 44 59 57 22 1 01
Total 4.83 5.3 4.3 4.2 3.6 3.5 3.4 3.4 1.7 1.9 1.9
Stockholders' 4 9 2 6 1 3 8 9
Equity
Total 100 100 100 100 100 100 100 100 100 100 100
Liabilities &
Equity

Liquidity/Fina Late 201 201 201 201 201 201 200 200 200 200
ncial Health st 5- 4- 3- 2- 1- 0- 9- 8- 7- 6-
Qtr. 12 12 12 12 12 12 12 12 12 12
Current Ratio
Quick Ratio
Financial 20.7 18. 22. 23. 27. 28. 29. 29. 56. 52. 50.
Leverage 1 73 8 69 81 13 29 17 06 7 35
Debt/Equity 0.37 0.3 0.3 1.5 2.6 2.7 0.5 3.4 0.8 0.7 0.7
6 6 7 8 8 6 6 1 8

Key Ratios -> Efficiency

Ratios
Efficiency TTM 201 201 201 201 201 201 200 200 200 200
5- 4- 3- 2- 1- 0- 9- 8- 7- 6-
12 12 12 12 12 12 12 12 12 12
Days Sales Outstanding
Days Inventory
Payables Period
Cash Conversion Cycle
Receivables Turnover
Inventory Turnover
Fixed Assets 7.3 6.5 6.8 4.5 4.9 5.5 5.8 6.4 8.9 8.9
Turnover 5 7 6 2 8 4 5 1
Asset 0.01 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Turnover 2 1 2 2 2 2 2 2 2 2
Finance for Managers 20