Ratio Analysis Sample

Making Short Work Of An Annual Report 3/29/05
Developed by Paul Schneider and converted to Excel 2000 by Dan Hess as a collaborative effort with Nancy Isaacs and Lowe
Herr for fellow NAIC I Club List users and others as freeware.
You can make short work of an annual report by heading straight for the tables of financial contents. At this stage, we assum
you have already completed a satisfactory SSG and are either contemplating buying the stock or already own it.
You may view or print out selected pages of the annual report from the company website listed in Value Line or get a printou
of the SEC Form 10K annual filing from Edgarscan at http://edgarscan.pwcglobal.com/servlets/edgarscan
as some of the alternate methods of obtaining the required financial tables. The 3 required tables are The Statement of
Income, The Balance Sheet, and The Statement of Cash Flows. The needed items of information are described herein and ca
be found and tabulated into this Excel program from these tables onto the "Input Data" worksheet (click on tab at bottom of th
page) and the Excel program will automatically calculate and list answers on the "Output Results" worksheet (click tab at
bottom of this page) to provide you with an excellent color coded idea of the financial strength and quality of your company. In
addition this "How to Input Data & Interpret" Worksheet you are now reading (see tab at bottom of this page) explains the
parameters calculated for you and provides an index of terms and explains these terms to partially assist in your education on
annual reports.
The input and output worksheets are provided to accommodate a large number of annual reports simultaneously and side by
side. Some may find it useful to place prior years of a company adjacent to allow historical comparisons. Likewise comparing
companies in the same business or industry may make more meaningful comparisons. The worksheet has been set up to view
or print many companies per page in landscape on an HP 932C Printer. This can easily be changed by adding columns, hidin
columns, clearing columns as the user desires. Refer to your Excel or Printer User Guides on how to make changes.
The "Output Results" worksheet has a Column B which contains a brief definition of the formulas used in the output calculation
You may choose to hide this column once you are familiar with the formulas and are familiar with Excel. Hiding Column B
permits you to view even more stocks simultaneously. You may also scroll to the right to view an entire portfolio, candidate
stocks, etc. You will also have to scroll vertically to see all the information on each company.
You have the option of comparing performance of sequential years of a given company, or several companies in a given
industry.
A color code of red, yellow, or green colors is used on the Output Results worksheet to signify high risk, caution, or good
performance, respectively, for each calculated parameter. The value of each calculated number is also given so the user can
make his or her own assessment of quality or risk. The color code also provides a quick overview of stocks in the entire portfol
that may be in trouble as measured by a multitude of parameters indicating "red", or conversely in "green" for those companie
that have excellent quality. The sample "user criteria" is included. Users may wish to customize this criteria to suit their risk
profile and desires. The colors have been selected by the "conditional formatting" provided by Excel 2.0 and can also be
modified by the user if needed to suit the particular nature of a given industry. So look at the number compared to the
industry;don't nit pick at the color. One color criteria does NOT fit all! This Excel program cannot have different color limits for
each industry! Color is only a guide.
Often companies that are leveraged on the ragged edge can nonetheless become popular and have successful price
appreciation. In a downturn however, owning companies with solid financial data as defined by these calculated numbers can
provide long term security. You might want to reject owning companies that appear to be of poor quality on this analysis that
otherwise look good using other "stock picking" criteria.
In addition to using this spreadsheet to quickly analyze the numbers in the annual report, the report should be read along with
the proxy. It is suggested that each subsequent annual report be analyzed in the same manner after owning the stock to
become aware of any changes in performance. Be forewarned that some stocks with great annual performance numbers can
still have poor price performance for good reason. (For instance, a drug company that is living off the laurels of one key drug th
is ready to go off patent (e.g. Schering Plough in 2001). Stock prices often reflect future anticipated performance.
As a final note, you should fully expect that the numbers that you calculate may differ from numbers you see already calculate
and published for you on the internet, annual reports, or in Value Line. For instance, a different time frame may be used such a
trailing twelve months (ttm) instead of fiscal year. Also calculations that involve terms of "equity" or "numbers of shares" will oft
use different definitions. Return on equity may use equity at the end of the year instead of average equity, which averages the
beginning and end of the year, or a weighted average equity. Number of shares in this program assume full dilution and avera
number of shares from beginning to end of the year, a weighted average. As long as you calculate all your companies the sam
way, you should not be mislead or have to rely on how it is done for you by each source.
"If All Else Fails, Read the Directions"
Sorry, but no matter how much you know about Annual Reports or Excel, you are going to have to read the directions in this
"How to Input Data & Interpret" Worksheet if you want to believe your output. There are a lot of opportunities to make mistake
if you do not. Such as: All input must be in Millions of dollars. Sign conventions in the Cash Flow Inputs can be either minus o
plus depending. Input of capital expenditures or dividends may be exceptions to the sign convention you may see in the
annual report. The input of numbers of shares must be in "diluted average weighted outstanding shares". And a few more.
Also, where do I find the Input in an Annual Report? We offer some help here since some companies use different words to
mean the same thing, and we tell what those terms are likely to be.
When I take data from the annual report, what sign do I use when I enter the data on an input sheet
In Annual reports, as a general rule, a number is to be entered to our input sheet as a plus if there is no minus sign or
parenthesis around the number (meaning minus). But read on for the exceptions. Or on a Statement of Cash Flows, it is also
entered as a plus if it is cash "provided by" an activity or a minus if it is cash "used in" an activity.
Generally it is to be entered on our input sheet with the same sign as indicated by the discussion above, with two notable
exceptions: If it is a dividend it should always be entered as a plus (regardless of the sign used in the annual report). Or if it is
capital expenditure (also called CAPEX) it should always be entered as a plus (regardless of the sign used in the annual repor
Unless in an extremely rare occurance where capital facilities are sold off rather than purchased. Then it would be minus.
Additional Data Input After The Statement of Income, Balance Sheet & Cash Flow Statement
Four more lines of input are required after the 3 Financial Statement Sheets. These are:
"Total Debt (Optional) from Valueline" (in millions of dollars). Do not use this option, but input a zero or leave it blank. Inputing
total debt from Valueline will overule your input of short term and long term debt on the input sheet.
"CEO Total Compensation" (input in millions of dollars). Should be taken from the latest proxy statement (also called Schedule
14A) which can be found online at Edgarscan. Add up the total annual compensation to include "Salary", "bonus", and "Other
annual compensation." Do not include long term compensation or stock options.
"Stock Option Shares Granted" (input in millions of shares). Data is available from Annual Report or 10K on Edgarscan. If you
look in the footnotes section, you will see "employee benefit plans" which lists the total number of stock option shares
outstanding for the year.
"Net Income if Stock Options Expensed" (input in millions of dollars). Look in the footnotes of the Annual Report or 10K for a
section on "stock based compensation" that starts out with the "Net Income as reported" and then subtracts the "Pro forma
employee compensation cost of stock based compensation plans." The Net Income if stock options are expensed will be
labeled "pro forma".
What If you don't know much about Excel?
You can learn enough to "get by". The following "How To" procedures may be all you need to get started using the spreadshee
But I highly recommend a book called "Teach Yourself Visually, Excel 2000" by Maran Graphics and Hungryminds.
To get acquainted with this spreadsheet, go ahead and open the "Input Data" or "Output Results" worksheets by clicking the
named tabs on the bottom of the page.
You will want to scroll horizontally to see the many stocks that can all be seen simultaneously and compared. Scroll vertically
see the entire worksheet.
Whole portfolios and candidate stocks can be seen all in one place, along with several years in a row of any given particular
stock.
To use the program, you just type in the input on the "Input Data" worksheet, and the output appears automatically on the
"Output Results" worksheet.
To input a new stock, you probably want to make one of the following 3 choices: You can either choose to insert an extra
column between existing stocks if you want perhaps to keep them in alphabetical order, or insert an extra column for the late
annual report of a given stock to the right of the same stock of the previous year, or even just type over the input data of an
existing stock if you are not yet comfortable with inserting extra columns.
Some worksheets are "protected" so you can't write on them and some are not protected because you have to write on them;
such as the input sheet. Below, we tell you how to protect and unprotect worksheets. To add a column to both the "Input Data
and "Output Results" worksheets, you are going to have to unprotect both sheets first (if they are not already) so that you can
modify them.
To unprotect the "Input Data" or "Output Results" worksheet, click Tools at the top of the page of any given worksheet, click
Protection, and click Unprotect sheet (unless this step tells you its already the way you want it). When the dialog box pop
up, we choose not to put in a password, but rather to leave the box blank. So just click OK. Unprotect worksheets when you
want to allow the ability to add extra columns or other changes.
To insert in an extra column to make room for a new stock that perhaps you may want to put in alphabetical order, you are
going to have to insert the column in each of the "Input Data" worksheet and the "Output Results" worksheet at the same
column letter address. First, go to the "Input Data" worksheet by clicking on the "Input Data" tab on the bottom of the page.
Excel will insert an extra column to the left of any column you select. Let us assume you want to insert an extra column to the
left of alphabetically lettered column G on your Input worksheet. To select a column, left click the column letter at the top of t
column G. Then right click and select insert.
A new blank column now appears and all the columns that follow shift to the right. The new extra column now becomes the
new column G. (Now to deselect the column, just click any cell.) Repeat the same procedure in the "Output Results" workshe
as you did for the "Input Data" worksheet. Click the same lettered column for each worksheet. You now have an extra colum
G on both worksheets. All the other columns were automatically updated by the insert command.
But you cannot start typing data on the input sheet yet! You have to "copy and paste" the hidden formulas on the "Output
Results" sheet into the new added column. (All the other columns to the right that have shifted over to new locations will
automatically adjust their formulas to the new column locations.) You can't see the formulas unless you access them, but the
are there.
Here's how to copy and paste-in the formulas:
Let us assume again that the column F of the "Output Results" sheet is the last column alphabetically just before your new
desired extra column G. The steps are to select Column F (the one with formulas we want to copy) by left clicking on the
column letter F at the top. Then right click and select copy.
Next, select the column where you want to paste to; column G in this case. Right click Paste. (To remove the "theatre marque
from column F, hit the "esc" key. To deselect the column G, just click any cell.)
No similar changes should be made to the "Input Data" worksheet.
It is recommended, but not essential, that you now protect the output worksheet so you do not accidentally write on it, but lea
the input worksheet unprotected so you can.
Now you are free to input data on the Input worksheet and read the answers on the Output worksheet at the same column
address.
What if you fowled something up during this process? All you have to do to return everything back to what it was before you
Abbreviations and Definitions

AR =Accounts receivable
CA=Current Assets
CAPEX = "Capital expenditures" or "Acquisitions of Plant, Property, and Equipment"
Cash Flow = Has many definitions and has to be separately defined or elaborated upon in a given context.
CEO Total Compensation= Sum of salary, bonuses and other compensation in millions of dollars.
Chg=Change
COG=Cost of Goods
C&E=Cash & Equivalents
CL=Current Liabilities
CY = Current Year
DIO=Days Inventory Outstanding http://www.fool.com/dripport/2002/dripport021219.htm?source=EDNWFT
DPO=Days Payables Outstanding http://www.fool.com/dripport/2002/dripport021219.htm?source=EDNWFT
DSO=Days Sales Outstanding http://www.fool.com/dripport/2002/dripport021219.htm?source=EDNWFT
Free Cash Flow = Cash provided by Operations - dividends paid - Capital expenditures
LTD=Long Term Debt
MS=Marketable Securities (if any)
NI=Net Income
Net Profit = Same as Net Income or Net Earnings
NCO=Net Cash from Operations
PP&E = Plant, Property, and Equipment. The total that exists now. As distinguished from Acquisitions of Plant Property and
Equipment(CAPEX)
PTI = Pre tax Income
PY = Prior year
ROIC=Return on Invested Capital
STI=Short Term Investments
STD=Short Term Debt
Short Term Debt: Refers in this document to the current portion of long term debt plus short term borrowing and capitalized
leases. Does not include deferred income taxes, or noncancellable operating leases, etc.
Total Cash = Cash plus Marketable Securities
Total Debt = Long Term debt plus Short Term debt
Number of shares: Refers in this document to average weighted fully diluted shares from beginning to end of the YEAR
YTY = Year to Year
Output Analysis, Criteria and Interpretation
Profitability Measures
% Pretax profit margin=(pretax profit / sales ) x 100.

Shows how profitable the company is, taking into account all income and all costs before paying income taxes. Higher is bette
Compare companies in the same industry, since margins differ significantly between industries.
% Net profit margin = (net profit /sales ) x 100.

% Profitability compared to sales after all taxes have been paid. A component of Return On Equity (ROE).
Assets and Equity In the next several measures of profitability, we are going to discus "assets" and "equity", so it is importan
to review what these words mean. "Assets" are what the company owns, Liabilities are what the company owes, and "Equity"
the difference. Assets minus Liabilities = Equity.
(e.g. The more you pay off on your mortgage, the more equity you have in your home.) This is what the Balance sheet in the
annual report is all about.
% Return on Equity (ROE) = (net profit / average equity) x 100.
The rate of profit the company earns on the stockholder's equity entrusted to management to use. In this case, the equity is
calculated by averaging the equity at the beginning and end of the fiscal year. ROE is also useful to look at to determine how
much internally generated return on capital is generated to finance future growth. Percent Return On Equity is useful in
measuring the "efficiency" of management compared to competitors. Since the ROE is a key factor in the growth of the
company's earnings, breaking it into its 3 components allows us to analyze the sources of earnings growth and their trends.
ROE = (net profit / sales) X (sales / assets) X (assets / equity). We do not calculate ROE this way, but use this fact to
examine the year to year trend of each component on the ROE trend.
Component No. 1 (net profit / sales ) is the Net Profit Margin described earlier.
Component No. 2 ( sales / assets ) is called the Asset Turnover (Efficiency) Is how efficient and intensively is managemen
utilizing the assets of the company. Check when significant changes occur from year to year..
Component No. 3 (assets / equity ) is called Financial Leverage (Gearing) or Balance Sheet Leverage.
From our discussion of Assets and Equity above, we can write:
(assets / equity) = (assets / (assets - liabilities) Note that Increased debt increases both the assets and the liabilities, so the
denominator is not significantly changed, but the numerator goes up. Therefore increased Debt increases the Financial
Leverage directly assuming other changes in the balance sheet are relatively less significant. However, be aware that the
higher the leverage with increased debt, the higher the Return on Equity might be, but also the higher the risk. Some leverage
can increase the returns to the shareholders, but increased debt leverage increases the risk of failure and/or bankruptcy. In
comparing the year to year changes in Financial Leverage and ROE, one should also note the increased percentage of debt.
An increase in assets due to more debt will raise Financial Leverage, but will tend to lower Asset Turnover unless an offsetting
increase in sales is made.
Note: The three components of Return On Equity are printed out on the Output worksheet on the three lines immediately abo
the Return On Equity.
% Retained to Common Equity (term used in Valueline)

Also means % Reinvestment Rate = % Internal Growth Rate = Implied Growth Rate
= ROE x (earnings - dividends) / earnings
This is very important because this is the rate of return of money left over from the return on equity after paying dividends (if
any). If no dividends are paid, the ROE and the % Retained to Common Equity are the same. The (earnings - dividends) /
earnings term is called the "retention rate". This is also equal to 1.0 minus (dividends / earnings) or 1 minus the "payout ratio"
Note that this "implied growth rate" is theoretical, but is useful at estimating whether the company is generating enough funds
pay for expansion to maintain the estimated growth rate.
It is also obvious that a company that wants to grow rapidly would prefer not to pay dividends. A company can grow by either
available reinvestment funds or by borrowing money. A useful criteria would be to compare the Implied Growth Rate to the SS
projected growth rate.
% Return on invested capital = (net profit) x 100. / (avg. equity + long term debt)
Return on invested capital is a measure of the efficiency by which management is utilizing both the equity and the long term
debt under its care. It is a far better measure of management than return on equity when a company has large long term deb
If long term debt were zero, the return in invested capital and return on equity would be the same.
%Return on total assets= (net profit / total assets) x 100.

Having a high return on total assets as well as a high return on equity is important, since a poor company can show a high retu
on equity in a given year simply by showing a profit with a tiny amount of equity. Both return on assets and return on equity
should be examined.
% Cash From Operations To Net Income =((Cash From Operations / Net Income) -1) X 100.)
This is a measure of the percentage by which the cash from operations exceeds the net income. On the Statement Of Cash
Flows, it is desirable that the Net Cash provided by Operating Activities be close to or exceed the Net Income to demonstrate a
higher quality of earnings and that neither item be a user of cash (negative) rather than a provider of cash (positive).
% Impact on Net Income of Expensing Stock Options. Shows the percentage by which EPS were overstated. Thus the
reported EPS would be lower by this percentage if stock options had been considered and thus is another measure of the
quality of earnings. When projecting EPS for the next 5 years, it is good to know what the latest year EPS would have been if
options had been expensed. Some companies are already reporting EPS reduced by the expensing of stock options.
Retained Earnings: When a company starts out it only has paid in capital as part of shareholder equity. By this is meant the
dollars paid to the company by shareholders to obtain shares (not via a public market like the NYSE)but like in an IPO. Thus
retained earnings would be zero. But as the company grows and makes a profit the retained earnings will generally grow,
unless reduced by paying dividends or other expenditures, and especially in mature companies retained earnings will become
larger percentage of shareholder equity.
% Ratio of Cash From Operations to Total Debt = (Cash From Operations / Total Debt) X 100.
This is intended to show how well the Cash From Operations covers the total outstanding debt. A measure of less than 25%
indicates limited financial ability.
% Margin of Free Cash Flow To Sales = (Cash Flow Provided By Operations - Capital Expenditures - Dividends Paid)
100. / Sales
The Net Cash from Operating Activities minus capital expenditures and dividends paid should be positive. It is expressed in t
case as a percentage of Sales. Capital expenditures are also referred to as CAPEX.
%Operating Cash Flow Margin= (net cash from Operations / sales )

Measures the effectiveness of generating cash for every dollar of sales. The net cash from Operations is given on the Cash Fl
Statement. The Sales (or Revenue) is located on the Statement of Income.
Operating Cash Flow Coverage Ratio =

Net Cash "provided by"/ ("used in") Operating Activities
(Net Cash "provided by"/ ("used in") Investing Activities + Net Cash "provided by"/ ("used in") Financing Activities)
The main operating business is a source of cash and is called Operating Activities (in the numerator above) and is divided by t
combined total (in the denominator) of Investing Activities (which is usually mostly capitol expenditures) plus Financing Activitie
(which is usually mostly debt financing costs)
Each of these three items listed in the Statement of Cash Flow can have a plus sign (if they are a provider of cash) or a minus
sign (if they are a user of cash). The Operating Activities (numerator) is usually (and hopefully) a provider of cash and has a
plus sign, whereas the two items in the denominator, when algebraically totaled up are usually net users of cash.
If the numerator is negative, the program will assign a negative sign for the entire Operating Cash Flow Coverage Ratio.
The larger this ratio is (say one or above) , the more successful the main Operating business is and the less dependence on
spending for capitol expenditures and debt repayment.
Examining the three parts of the Cash Flow Statement is of major importance in determining the quality of the total cash flow o
the company and goes far beyond the Cash Flow Coverage Ratio discussed here. It is important that this be studied separate
as well.
Capital Structure
Total Debt to Equity Ratio = Total Debt / Average Equity

Lower debt may permit management to have greater flexibility during difficult economic times and to pay less interest costs in
servicing the debt. Normally long term debt is used. However, total debt is used here and therefore a much more pessimistic
number is produced. Total debt is the sum of short term and long term debt. GE was recently criticized by noted Bond Analys
Bill Gross (March 2002) for having an excessive short term debt in the form of commercial paper. Debt is not necessarily bad i
properly managed.
Share Buyback (Vs Share Dilution) = (Shares Last Year - Shares This Year) / Shares Last year
If a company actually buys back its shares (rather than just authorizes it), the earnings per share will increase and existing
stockholders will own a greater percentage of the company. If the calculated equation comes out negative, the number of
shares this year has been increased and we have "share dilution" which is the opposite effect. From studying several
companies, it will be noted that share dilution is far more common as a result of an overage of stock options granted or new
stock offerings all exceeding the number of actual buybacks.
Stock Option Shares / Total Number of Shares

Shows the percentage of shares that management has awarded of the total shares outstanding. Our color criteria is 5%. Some
of these shares may be "in the money" and thus counted in the diluted shares and some may not. Thus one needs to look mor
deeply to determine the impact. Since we buy a stock expecting the price to rise and if it does then these awarded shares may
be excercised and thus further dilute shareholder earnings and equity, it seems to be an area the investor should understand
before investing in such a company. Perhaps a company can still show suitable growth and potential total return even with su
a large options overhanng but it is an area that should be considered.
Net Cash= (Cash & Equivalents - Long Term Debt):

C&E as stated here really includes short term investments and short term marketable securities in addition to Cash and Cash
Equivalents. This will be a positive number for a company with lots of cash and little or no debt. A large positive number is an
ideal signal of financial strength, but a lot of good companies will also have negative net cash.
Cash & Equivalents Ratio CY/PY = Cash & Equivalents (Current Year) / Cash & Equivalents (Prior Year)
C&E as stated here really includes short term investments and short term marketable securities in addition to Cash and Cash
equivalents. This is a measure if the company is improving on the Cash & Equivalents available this year over last year.
Interest Coverage Ratio = (Pretax Profit + Interest Expense) / Interest Expense

This is expressed as a ratio of the number of times the excess of pretax profit plus the interest expense exceeds the interest
expense. Higher numbers show an increased capability to handle interest costs. It is at a maximum if there is no debt and
therefore no interest is paid. In this case, the words "No Debt" are printed out.
Cash Conversion Cycle (CCC) = Days Inv Outstanding + Days Sales Outstanding - Days Payables Outstanding
CCC is from the Fool and is briefly the time required to turn a dollar spent on goods sold back into cash. See
http://www.fool.com/dripport/2002/dripport021219.htm?source=EDNWFT
Current Ratio = Current Assets / Current Liabilities
This is a measure of short term liquidity where current assets (available in one year) could be used to pay off current liabilities
(debt due within one year). A ratio of 1 to 2 is typical depending on the nature of the company's business. Higher is better, but
numbers over 3 or 4 indicate excess cash may not be put to work efficiently. Less that 1 is called negative working capital an
is rare or used as an interest free way of raising cash. (Omnicom, OMC, an advertising company, for example is negative (ratio
less than 1) every year.) For some businesses, negative working capitol may not be a bad thing.
Quick Assets Ratio = (Cash & Equivalents+Short TermInvestments+Short Term Marketable Securites+Accounts Receivable)
Current Liabilities: Cash and other assets which can or will be converted into cash fairly soon, such as accounts receivable an
marketable securities; or equivalently, current assets minus inventory.
Foolish Flow Ratio= (Current Assets - Cash& Equivalents) / (Current Liabilities - Short Term Debt) is taken from The Motley
Fool. It is a ratio of "bad assets to good liabilities." What do we mean by a "bad asset" and "good liability"? A bad asset is high
inventories and high accounts receivable. A good liability is a high accounts payable.
If you look at a typical Balance Sheet, Current Assets consist of "bad assets" (where people owe you money such as accoun
receivable, or that cost you money such as inventories that you have to wait till you can sell) and "good assets" like Cash and
Equivalents that are immediately available.
Current Liabilites consist of "good liabilities" such as accounts payable (that you owe other people but have not paid yet) and
"bad liabilities" such as short term debt that must be paid right away.
The type of companies that have high inventories to sell will not be as able to keep this ratio down as easily as the types of
businesses that have no inventory. So this ratio has to be compared to peer companies to be useful. An arbitrary criteria of 1.2
was used only to flag the need to investigate the nature of a company that might have a number higher than its peers in the
same industry.
Change in Sales
This measures the percent change in sales for the current year (CY) compared to the prior year (PY).
Change in AR/Sales
This measures the percent change in the ratios of Accounts Receivable (AR) to Sales for current year (CY) to prior year (PY)
Days Sales Outstanding ( CY)

The Days Sales Outstanding (DSO) indicates how many days it is taking to convert the uncollected sales to cash. A short
turnover period and a stable or declining trend are positive indicators of receivable quality.
(Net Sales/365 days) = Sales per Day
(Average Accounts Receivable / Sales per Day) = DSO
Days Sales Outstanding (PY) As above except for prior year (PY)
Inventory Turnover Rate (CY)

The inventory turnover rate for the current year (CY) is the number of times annually that the dollar value of the current invento
can be sold in a given year. The more inventory "turns" that can be achieved per year , the greater the liquidity of the
inventories.
Turnover rate (CY) = Cost of Goods Sold (CY) / Inventory (CY)
Inventory Turnover Rate (PY) As above except for prior year (PY)
Plant Turnover Ratio = Sales / Plant, Property, and Equipment (PP&E)

This measures the Sales that are returned relative to the value of the plant, property, and equipment that exists.
Higher values are better in that they indicate a better return on the facilities. Additional capital expenditures (CAPEX) to add t
the total PP&E should be met with improved sales in subsequent years in order to maintain or improve the Plant Turnover
Ratio.
Annual Report Terminology

As you approach studying financial statements, here is a "cheat sheet" to refer to when you get confused by the line item
names. Frequently there are different names for the same thing. You will therefore have use for this.
Accounts Payable = Payables
Accounts Receivable = Trade Receivables

= Receivables
Additional Paid-in Capital = Capital in Excess of Stated Value

= Capital Surplus
= Paid-in Capital
Balance Sheet = Statement of Financial Condition

= Consolidated Balance Sheets
Capital Expenditures includes: Acquisition of Property and Equipment

Capital Expenditures
Capitalized Software Costs
Cash includes: Cash Equivalents

Marketable Securities
Short-term Marketable Securities
Investment Securities
Other Securities
Short-term Investments
Trading Assets
Cost of Goods Sold includes: Costs of Sales

Cost of Revenue
Cost of Products Sold
Cost of Services Sold
Costs, Materials, and Production
Current Assets includes: Cash

Accounts Receivable
Trade Accounts Receivable
Other receivables
Loan receivable
Inventories (includes raw materials,
work-in-process,semi-finishedgoods,
and finished goods)
Deferred tax
Prepaid income tax
Prepaid assets
Other prepaid expenses and receivables
Other current assets
Current Liabilities includes: Accounts payable

Income taxes
Current portion of long-term debt
Accrued liabilities (expenses)
Deferred/unearned revenue
Other current liabilities
Earnings = Net Income

= Net Profit
Income Statement = Earnings Statement

= Statement of Operations
= Profit & Loss Statement
= Consolidated Statement of Income
Inventories = Merchandise Inventories
Earnings Before Income Taxes = Income (Loss) Before Income Taxes

= Earnings Before Provision for Income Taxes
Earnings per Share = Net Income per Share

= Net Income per Common Share
Long-Term Debt includes: Notes/Loans payable

Bank line of credit
Capital lease obligation
Preferred stock
Convertible notes
Net Income = Net Profit

= Net Earnings
Operating Cash Flow includes: Net cash provided by (used in) Operating Activities
Revenues = Sales
= Net Sales
Shareholder Equity = Shareholders' Investment

= Stockholders' Equity
Short-Term Debt includes: Debt Payable Within One Year

Current Portion of Long-Term Debt
Notes Payable
Short-term borrowings
Annual Report Analysis Version 1.0.50
From Statement of Income: ($M) Required Inputs
Company ACS ACS ACS ACS ACS ACS BBBY BBBY
Fiscal Year (mm/dd/yy) 06/30/00 06/30/01 06/30/02 06/30/03 06/30/04 06/30/05 03/03/01 03/02/02
Sales - Current Year CY (M) 1962.54 2063.56 3062.92 3787.21 4106.39 4351.16 2396.66 2927.96
Sales - Prior Year PY (M) 1642.22 1962.54 2063.56 3062.92 3787.21 4106.39 1857.51 2396.66
Cost of Goods Sold - Current Year 854.16 904.68 1350.06 1716.95 1790.48 1867.98 1410.20 1720.40
Cost of Goods Sold - Prior Year 713.98 854.16 904.68 1350.06 1716.95 1790.48 1090.70 1410.20
Interest Expense 23.98 23.74 30.62 25.19 17.04 18.60 0.00 0.00
Pre Tax Income (PTI) 195.27 221.06 360.46 490.95 829.18 641.07 281.84 357.07
Income Taxes 85.96 86.77 130.86 184.11 299.34 225.13 109.92 137.47
Net Profit / Net Income / Net Earnings 109.31 134.29 229.60 306.84 529.84 415.95 171.92 219.60
Diluted avg wtd no shares CY (M) 111.61 116.46 137.46 143.43 139.65 130.38 292.88 298.67
Diluted avg wtd no shares PY (M) 111.34 111.61 116.46 137.46 143.43 139.65 288.23 292.88
From Balance Sheet: ($M)
C&E+ShTm Inv+Marketable Sec(CY) 44.52 242.46 33.81 51.17 76.90 62.69 239.33 429.50
C&E+ShTm Inv+Marketable Sec(PY) 28.58 44.52 242.46 33.81 51.17 76.90 144.03 239.33
Accounts Receivable - CY 579.67 472.04 736.47 835.48 873.47 1061.59 0.00 0.00
Accounts Receivable - PY 320.12 399.85 472.04 736.47 835.48 873.45 0.00 0.00
Inventories - Current Year 7.32 8.59 9.74 6.25 0.00 0.00 606.70 753.97
Inventories - Prior Year 13.78 7.32 8.59 9.74 6.25 0.00 470.43 606.70
Current assets 771.87 809.62 874.49 979.50 1044.42 1244.10 885.71 1226.72
Property, Plant & Equipment 194.03 237.56 394.83 478.21 521.77 677.24 302.66 361.74
Total assets (CY) 1656.45 1891.69 3403.57 3698.71 3907.24 4850.84 1195.73 1647.52
Total assets (PY) 1223.60 1656.45 1891.69 3403.57 3698.71 3907.24 865.80 1195.73
Short Term Debt (See definition) 2.88 3.36 1.33 1.76 2.05 6.19 0.00 0.00
Accounts Payable
Current liabilities 358.24 281.05 485.91 557.48 637.57 838.11 353.19 511.28
Long Term Debt 525.62 649.31 708.23 498.30 372.44 251.07 0.00 0.00
Retained Earnings 400.20 534.37 763.57 1070.41 1600.25 2016.20 633.20 852.80
Shareholder Equity - Current Year 711.38 885.52 2095.42 2429.19 2590.49 2838.43 817.02 1094.35
Shareholder Equity - Prior Year 607.42 711.38 885.52 2095.42 2429.19 2590.49 559.05 817.02
From Statement of Cash Flows ($M)
Net Cash from Operating Activities(cy) 157.82 141.91 372.01 545.31 476.21 739.35 197.94 337.96
Net Cash from Investing Activities -315.78 -69.14 -1598.16 -320.08 70.40 -921.99
Capital Expenditures (CAPEX) 71.55 99.07 144.41 205.67 224.62 253.23 140.40 121.63
Net cash from Financing Activities 173.90 125.16 1017.51 -207.89 -520.88 168.43 37.76 25.75
Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
From Value Line ($M) 0.00 0.00
Total Debt (Optional)
From Proxy, or SEC Schedule 14A ($M)
CEO Total Compensation 2.45 2.24 1.71 0.73
From Financial Notes In Annual Report
Stock Option Shares Outstanding (M) 11.3 10.71 11.13 12.96 13.46 15.36 24.17 23.12
Net Income if Stk Options Expensed($M) 102 125.43 217.66 289.27 509.4 392.5 154.5 200
BBBY BBBY BBBY BFAM BFAM BFAM BFAM BMET BMET BMET BMET BMET BMET
3/1/2003 2/28/2004 2/28/2005 12/31/2001 12/31/2002 12/31/2003 12/31/2004 05/31/00 05/31/01 05/31/02 05/31/03 05/31/04 05/31/05
3665.16 4477.98 5147.68 345.86 407.53 472.76 551.76 923.55 1030.66 1191.90 1390.30 1615.25 1879.95
2927.96 3665.16 4477.98 291.14 345.86 407.53 472.76 830.84 923.55 1030.66 1191.90 1390.30 1615.25
2146.62 2601.32 2961.38 295.03 347.64 400.41 459.81 281.35 296.06 332.73 407.30 461.50 533.10
1720.40 2146.62 2601.32 248.41 295.03 347.64 400.41 262.36 281.35 296.06 332.73 407.30 461.50
0.00 0.00 0.00 103.00 167.00 165.00 3.81 4.11 3.38 4.67 3.66 8.67
491.35 649.55 811.19 19.94 26.27 34.65 47.10 280.69 310.68 376.12 451.74 508.80 549.70
189.17 250.08 306.23 8.41 10.95 14.63 19.77 99.74 105.91 127.67 156.96 176.10 198.08
302.18 399.47 504.96 11.53 15.32 20.01 27.33 173.77 197.55 239.74 286.70 325.63 351.62
301.15 304.69 306.64 25.60 26.05 26.75 27.85 267.24 270.75 271.25 261.39 257.20 254.15
298.67 301.15 304.69 25.04 25.60 26.05 26.75 265.82 267.24 270.75 271.25 261.39 257.20
616.60 866.60 851.45 12.77 28.19 33.90 42.47 247.74 287.72 185.27 262.99 169.27 115.67
429.50 616.60 866.60 8.60 12.77 28.19 33.90 192.16 247.74 287.72 185.27 262.99 169.27
0.00 0.00 0.00 26.74 22.56 27.94 26.18 249.79 324.85 365.15 418.10 465.95 479.75
0.00 0.00 0.00 23.95 26.74 22.56 27.94 223.61 249.79 324.85 365.15 418.10 465.95
915.67 1012.33 1152.03 0.00 0.00 0.00 0.00 240.16 277.60 335.35 356.27 389.39 469.79
753.97 915.67 1012.33 0.00 0.00 0.00 0.00 220.59 240.16 277.60 335.35 356.27 389.39
1594.39 1969.29 2097.00 51.25 65.11 81.05 94.61 789.63 968.38 952.94 1111.76 1115.87 1173.92
423.91 516.16 609.63 77.76 88.47 98.20 112.64 183.26 185.75 219.06 253.45 268.83 322.89
2188.84 2865.02 3199.98 161.02 201.29 247.07 296.61 1218.45 1489.31 1521.72 1672.17 1782.91 2096.58
1647.52 2188.84 2865.02 136.90 161.02 201.29 247.07 1110.94 1218.45 1489.31 1521.72 1672.17 1782.91
0.00 0.00 0.25 0.16 0.67 0.78 70.55 62.73 90.47 114.12 109.65 282.19
398.65 450.53 36.15 48.84 52.38 51.96 55.37 57.02
680.17 769.53 873.59 54.79 73.83 83.33 82.79 181.44 241.82 237.70 266.65 308.61 501.39
0.00 0.00 0.00 0.64 0.38 1.99 1.32 0.00 0.00 0.00 0.00 0.00 0.00
1154.94 1554.41 2059.38 14.34 29.66 49.68 77.00 866.00 1044.56 1054.02 1100.46 1218.68 1284.91
1451.92 1990.82 2203.76 89.42 109.63 145.51 186.24 943.32 1146.19 1176.48 1286.13 1448.21 1563.93
1094.35 1451.92 1990.82 75.28 89.42 109.63 145.51 795.85 943.32 1146.19 1176.48 1286.13 1448.21
419.32 548.44 616.39 31.09 46.07 30.75 37.28 137.83 190.51 184.24 310.28 386.09 410.92
-493.12 -687.23 -363.04 -22.17 -31.61 -35.22 -33.87 -67.65 -156.67 -77.42 -19.70 -253.48 -360.68
135.25 113.00 190.72 21.01 17.03 18.69 12.87 43.07 35.26 62.28 59.77 61.34 97.37
24.22 53.38 -325.74 -4.73 0.77 10.06 4.95 14.58 -14.95 -188.92 -222.81 -194.61 -98.27
0.00 0.00 0.00 0.00 0.00 0.00 0.00 16.47 18.99 24.27 26.42 38.60 50.87
0.00
0.00 0.00
0.833 0.931 1.031 0.28 0.33 0.39 0.57 0.51 0.55 0.59 0.58
23.84 23.03 24.84 1.98 2.03 1.5 2.4 6.27 8.71 8.39 7.79 7.36 8.06
276.7 370.1 470.3 8.1 10.66 16.46 25 170.3 193.4 234.5 281.2 319.8 344.3
CDWC CDWC CDWC CDWC EDMC EDMC EDMC EDMC FAST FAST FAST FAST FAST
12/31/01 12/31/02 12/31/03 12/31/04 06/30/02 06/30/03 05/30/04 05/30/05 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04
3961.55 4264.58 4664.62 5737.77 500.58 640.03 853.02 1019.34 755.62 818.28 905.44 994.93 1238.49
3842.45 3961.55 4264.58 4664.62 370.70 500.58 640.03 853.02 618.19 755.62 818.28 905.44 994.93
3434.51 3700.74 3990.82 4867.65 325.03 417.56 546.13 640.45 367.50 405.86 456.96 505.86 614.16
3352.61 3434.51 3700.74 3990.82 242.30 325.03 417.56 546.13 298.73 367.50 405.86 456.96 505.86
0.00 0.00 0.00 0.00 1.55 1.28 2.48 -0.22 0.00 0.00 0.00 0.00 0.00
279.98 306.20 289.56 399.86 67.42 91.45 130.51 168.81 131.43 113.63 121.21 136.34 208.34
111.29 120.95 114.38 158.42 25.10 35.17 53.50 67.23 50.70 43.52 46.38 52.22 77.35
168.69 185.25 175.19 241.45 42.31 56.28 77.01 101.57 80.73 70.11 75.54 84.12 130.99
89.14 88.30 86.18 86.55 68.96 73.02 74.87 75.15 75.88 75.88 75.88 75.89 75.99
90.86 89.14 88.30 86.18 62.03 68.96 73.02 74.87 75.88 75.88 75.88 75.88 75.89
394.38 504.61 562.36 603.62 92.12 89.55 123.14 176.87 23.74 68.52 51.36 70.89 39.00
202.62 394.38 504.61 562.36 47.10 84.50 88.95 123.14 27.85 23.74 68.52 51.36 70.89
318.41 333.08 444.00 580.04 30.38 40.64 52.20 57.97 106.12 101.36 105.55 128.76 162.50
337.42 318.41 333.08 444.00 22.50 30.38 40.64 52.20 84.56 106.12 101.36 105.55 128.76
119.12 150.79 183.89 213.22 3.93 4.37 5.00 5.60 143.07 152.71 217.26 232.88 307.33
110.20 119.12 150.79 183.89 2.90 3.93 4.37 5.00 106.60 143.07 152.71 217.26 232.88
854.16 1018.54 1070.18 1316.44 140.00 161.02 205.05 279.68 284.46 341.24 396.49 454.20 538.07
69.07 64.09 62.32 68.60 191.70 230.75 276.15 325.80 105.81 121.61 144.25 169.55 193.45
937.03 1095.66 1311.63 1520.94 492.70 577.60 828.00 956.03 402.46 475.24 559.01 651.54 770.23
748.44 937.03 1095.66 1311.63 287.50 492.70 577.60 828.00 318.62 402.46 475.24 559.01 651.54
0.00 0.00 0.00 0.00 25.10 35.10 125.20 66.20 0.00 0.00 0.00 0.00 0.00
149.07 168.06 19.9 20.1 40.12 39.28
158.37 171.59 248.46 279.52 139.70 140.20 281.51 232.60 36.58 40.56 47.06 60.94 71.18
0.00 0.00 0.00 0.00 3.50 3.40 3.40 4.30 0.00 0.00 0.00 0.00 0.00
621.30 806.55 956.87 1168.29 97.10 153.37 230.38 332.00 355.20 421.95 493.69 561.88 662.52
778.66 924.07 1061.18 1241.42 346.60 427.78 528.69 666.01 359.26 424.89 499.87 576.75 684.37
636.25 778.66 924.07 1061.18 159.90 346.60 427.78 528.69 281.96 359.26 424.89 499.87 576.75
302.40 231.41 125.42 184.21 100.42 79.39 163.30 193.19 38.25 90.77 17.61 90.62 57.44
-111.01 -109.79 -21.98 -139.95 -154.24 -108.44 -236.93 -98.79 -43.30 -60.65 -46.80 -39.73 -43.54
22.49 10.58 11.38 22.11 45.40 80.81 80.70 71.21 30.10 42.05 39.99 46.06 48.19
-89.08 -110.45 -38.33 -118.14 98.53 24.25 102.04 -39.00 -3.04 -3.42 -3.79 -15.94 -30.35
0.00 0.00 24.87 30.03 0.00 0.00 0.00 0.00 3.42 3.42 3.79 15.94 30.35
0.00 0.00 0.00
1.40 1.68 1.70 0.52 0.60 1.03 0.12 0.06 0.42 0.37
12.65 11.38 10.93 3.77 5.63 6.85 5.32
145.57 159.8 150.8 214.8 36.2 49.6 61.6 85.1 79.2 67.6 72.9 82.4 130.1
FDS FDS FDS FDS FDS FISV FISV GNTX GNTX GNTX GNTX GNTX HD
08/31/01 08/31/02 08/31/03 08/31/04 08/31/05 12/31/03 12/31/04 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 01/28/01
167.60 198.29 222.30 251.91 312.64 2925.37 3729.75 297.42 310.30 395.26 469.02 505.67 45738.00
134.18 167.56 198.29 222.30 251.91 2389.39 2925.37 262.16 297.42 310.30 395.26 469.02 38434.00
52.44 60.39 66.30 74.19 91.80 2403.55 3070.19 172.47 188.30 235.61 272.52 297.92 32057.00
45.49 52.44 60.39 66.29 74.19 1955.09 2403.55 148.82 172.47 188.30 235.61 272.52 27023.00
0.00 0.00 0.00 0.00 0.00 521.82 659.56 0.00 0.00 0.00 0.00 0.00 21.00
54.25 64.24 79.02 89.38 110.16 506.27 641.37 104.52 96.62 127.07 158.16 165.73 4217.00
20.85 23.39 27.58 31.36 38.40 197.44 246.47 33.98 31.40 31.30 51.41 53.08 1636.00
33.40 40.85 51.44 58.02 71.77 308.82 394.90 70.54 65.22 85.77 106.76 112.66 2581.00
52.14 52.29 52.22 50.62 50.16 195.94 197.29 75.52 75.87 76.60 77.68 78.36 2352.00
51.00 52.15 52.29 52.22 50.62 194.95 195.94 75.00 75.52 75.87 76.60 77.68 2342.00
79.31 130.84 169.26 98.10 76.02 162.67 516.13 138.44 205.64 215.65 393.61 494.88 177.00
62.33 79.31 130.84 169.26 98.10 227.20 162.67 94.73 138.44 205.64 215.65 393.61 170.00
33.22 31.92 35.70 45.94 54.03 417.52 437.76 35.61 31.99 35.89 58.96 56.09 835.00
28.45 33.22 31.92 35.70 45.94 339.74 417.52 30.66 35.61 31.99 35.89 58.96 587.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 12.09 14.41 17.74 20.94 30.60 6556.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.98 12.09 14.41 17.74 20.94 5489.00
120.23 170.82 212.35 154.61 139.15 0.00 0.00 190.56 259.86 276.80 485.35 592.61 7777.00
35.47 27.56 19.35 43.91 52.36 200.58 213.80 81.92 110.86 124.98 126.81 135.65 13068.00
172.55 216.16 256.16 229.93 347.53 7214.18 8383.35 428.13 506.82 609.17 762.53 856.86 21385.00
135.57 172.55 216.16 256.16 229.93 6438.70 7214.18 337.70 506.82 609.17 762.53 17081.00
0.00 0.00 0.00 0.00 100.00 100.00 0.00 0.00 0.00 0.00 0.00 4.00
6.20 11.43 13.79 21.12 20.4 179.19 202.62 18.26 19.85
33.67 38.65 43.37 57.79 63.69 0.00 0.00 19.69 20.99 29.06 50.48 50.86 4385.00
0.00 0.00 0.00 0.00 0.00 699.12 505.33 0.00 0.00 0.00 0.00 0.00 1545.00
114.57 149.56 193.61 243.32 305.64 1542.90 1920.54 303.20 368.40 454.20 528.36 591.55 10151.00
138.26 176.97 212.23 164.55 268.11 2199.81 2564.42 402.10 479.00 573.64 693.64 783.28 15004.00
103.00 138.26 176.97 212.23 164.55 1827.70 2199.81 317.05 402.10 479.00 573.64 693.64 12341.00
49.61 66.70 74.71 82.46 94.35 595.69 698.38 83.62 85.35 119.11 116.58 131.37 2796.00
-50.20 -55.21 -48.57 54.40 -111.13 -735.60 -365.25 -49.02 -63.64 -102.54 37.54 -27.14 -3530.00
30.14 10.02 8.46 37.84 21.94 139.11 161.09 21.57 44.05 32.37 22.18 30.48 3558.00
-0.45 -5.25 -19.83 -109.41 -2.12 109.62 20.32 6.37 7.88 12.47 -0.29 -31.36 737.00
4.01 5.38 6.67 7.74 8.84 0.00 0.00 0.00 0.00 0.00 11.51 47.96 371.00
0.00
0.00
0.63 0.66 0.67 0.72 0.76 1.66 0.39 0.42 0.44

4.15 4.45 4.47 4.64 7.02 11.59 11.56 3.9 4.14 4.27 4.55 5.29 65.8
27.21 33.55 43.9 50.9 65 298 359.6 64.50 58.21 77.69 96.3 98.1
HD HD HD HD KNX KNX KNX LNCR LNCR LNCR LNCR ORLY ORLY
02/03/02 02/02/03 02/01/04 02/01/05 12/31/02 12/31/03 12/31/04 12/31/01 12/31/02 12/31/03 12/31/04 12/31/2001 12/31/2002
53553.00 58247.00 64816.00 73094.00 285.79 340.07 442.29 812.44 960.90 1147.36 1268.53 1092.11 1312.49
45738.00 53553.00 58247.00 64816.00 250.82 285.79 340.07 702.48 812.44 960.90 1147.36 890.42 1092.11
37406.00 40139.00 44236.00 48664.00 176.90 206.90 274.60 123.41 144.53 171.66 184.40 624.29 759.09
32057.00 37406.00 40139.00 44236.00 158.10 176.90 206.90 112.95 123.41 144.53 171.66 507.72 624.29
28.00 37.00 62.00 70.00 1.08 0.88 0.00 16.01 14.17 17.43 17.06 9.09 9.25
4957.00 5872.00 6843.00 7912.00 47.35 58.80 79.76 218.00 305.66 371.26 440.40 106.73 130.98
1913.00 2208.00 2539.00 2911.00 19.41 23.34 31.90 83.06 115.23 139.15 166.98 40.38 48.99
3044.00 3664.00 4304.00 5001.00 27.94 35.46 47.86 134.94 190.43 232.11 273.43 66.35 81.99
2353.00 2344.00 2289.00 2216.00 57.04 57.36 57.64 107.44 106.94 101.67 99.68 52.79 53.69
2352.00 2353.00 2344.00 2289.00 52.72 57.04 57.36 106.17 107.44 106.94 101.67 51.73 52.79
2546.00 2253.00 2852.00 2165.00 36.20 40.55 25.36 8.35 1.58 9.82 225.79 15.04 29.33
177.00 2546.00 2253.00 2852.00 24.14 36.20 40.55 3.20 8.35 1.58 9.82 9.20 15.04
920.00 1072.00 1097.00 1499.00 41.31 39.27 58.90 143.84 142.74 151.19 137.89 41.49 45.42
835.00 920.00 1072.00 1097.00 32.47 41.31 39.27 116.84 143.84 142.74 151.19 32.67 41.49
6725.00 8338.00 9076.00 10076.00 1.35 1.34 2.33 2.86 2.99 2.50 2.35 447.79 504.10
6556.00 6725.00 8338.00 9076.00 1.91 1.35 1.34 3.88 2.86 2.99 2.50 372.07 447.79
10361.00 11917.00 13328.00 14190.00 92.94 96.07 102.52 161.23 153.65 187.09 377.86 550.66 631.05
15375.00 17168.00 20063.00 22726.00 176.89 212.94 287.93 441.39 515.27 622.27 678.38 289.00 353.60
26394.00 30011.00 34437.00 38907.00 284.84 321.23 402.87 1071.06 1198.60 1431.66 1721.06 856.86 1009.42
21385.00 26394.00 30011.00 34437.00 239.89 284.84 321.23 877.60 1071.06 1198.60 1431.66 716.00 856.86
5.00 7.00 509.00 11.00 2.72 0.00 0.00 97.49 53.72 65.94 67.94 11.84 0.68
7.75 3.41 5.04 26.96 35.03 26.79
6501.00 8035.00 9554.00 10529.00 28.69 26.15 39.19 162.02 110.67 147.16 132.42 121.14 147.42
1250.00 1321.00 856.00 2148.00 12.20 0.00 0.00 125.78 155.53 320.82 275.29 165.62 190.47
12799.00 15971.00 19680.00 23962.00 126.15 161.61 208.33 719.64 910.07 1142.18 1415.60 298.97 380.96
18082.00 19802.00 22407.00 24158.00 199.66 239.92 291.02 738.96 856.29 848.25 1166.30 556.29 650.52
15004.00 18082.00 19802.00 22407.00 167.70 199.66 239.92 584.45 738.96 856.29 848.25 463.73 556.29
5963.00 4802.00 6545.00 6904.00 55.49 84.41 98.90 233.71 287.64 370.97 419.28 50.03 104.53
-3466.00 -2601.00 -4171.00 -4479.00 -42.29 -67.36 -115.04 -231.13 -177.39 -266.98 -173.13 -77.85 -105.39
3393.00 2749.00 3508.00 3948.00 41.81 70.31 115.67 74.21 82.93 127.84 89.67 68.52 102.26
-173.00 -2165.00 -1931.00 -3055.00 -1.14 -12.69 0.95 -5.77 -108.67 -95.76 -30.18 33.65 15.14
396.00 492.00 595.00 719.00 0.00 0.00 1.13 0.00 0.00 0.00 0.00 0.00 0.00
0.00
13.86 11.55 11.66 14.62 0.27 0.39 0.59 3.50 1.48 1.90 1.53 0.72
69.45 83.17 87.78 86.39 1.79 2.50 2.50 9.96 10.36 11.09 9.98
2800 3414 4067 4843 27.3 34.4 46.6 118.51 171.6 215 260.5 74.8
ORLY ORLY PFCB PFCB PFE PFE PFE PFE SYK SYK SYK SYK SYK
13/31/03 12/31/2004 12/28/2003 1/2/2005 12/31/01 12/31/02 12/31/03 12/31/04 12/31/97 12/31/98 12/31/99 12/31/00 12/31/01
1511.82 1721.24 539.92 706.94 29024.00 32373.00 44736.00 52616.00 980.14 1103.21 2103.70 2289.40 2602.30
1312.49 1511.82 406.61 539.92 26045.00 29024.00 32373.00 44736.00 910.06 980.14 1103.20 2103.70 2289.40
873.48 978.08 152.79 200.74 3823.00 4045.00 9589.00 7541.00 397.77 472.07 989.70 815.20 963.80
759.09 873.48 112.57 152.79 3755.00 3823.00 4045.00 9589.00 392.36 397.77 472.10 989.70 815.20
6.86 4.70 0.01 0.00 266.00 251.00 290.00 359.00 4.12 12.18 122.60 96.60 67.90
160.04 187.74 37.21 36.71 9984.00 11796.00 3246.00 14007.00 194.45 59.96 29.80 334.90 405.70
59.96 70.06 12.42 10.66 2433.00 2609.00 1614.00 2665.00 70.00 20.39 10.40 113.90 133.90
100.09 138.57 24.79 26.05 7788.00 9126.00 3910.00 11361.00 125.32 39.57 19.40 221.00 271.80
54.53 55.71 26.25 26.58 6361.00 6241.00 7185.60 7613.90 196.26 192.60 397.20 402.20 406.00
53.69 54.53 25.92 26.25 6368.00 6361.00 6241.00 7185.60 106.86 196.26 192.60 397.20 402.20
21.09 69.03 50.48 71.41 8615.00 12551.00 11952.00 19893.00 351.07 142.21 83.50 54.00 50.10
29.33 21.09 42.89 50.48 6863.00 8615.00 12551.00 11952.00 367.57 351.07 138.60 83.50 54.00
52.24 60.93 0.00 0.00 4798.00 5785.00 8636.00 9367.00 176.21 425.61 377.70 343.70 332.10
45.42 52.24 0.00 0.00 5489.00 4798.00 5785.00 8636.00 166.05 176.21 425.60 377.70 343.70
523.75 625.32 2.91 2.95 2485.00 2678.00 5699.00 6660.00 136.25 553.96 386.10 392.10 399.80
504.10 523.75 2.32 2.91 2702.00 2485.00 2678.00 5699.00 127.39 116.34 591.00 386.10 392.10
656.93 813.48 59.70 84.23 19212.00 24781.00 30677.00 39694.00 756.61 1311.84 1110.40 997.00 993.10
449.06 567.49 228.17 280.64 9783.00 10712.00 18156.00 18385.00 163.90 429.50 391.50 378.10 444.00
1157.03 1432.36 303.82 383.52 39153.00 46356.00 116775.00 123684.00 985.08 2885.85 2580.50 2430.80 2423.60
1009.42 1157.03 383.50 303.82 33510.00 39153.00 46356.00 116775.00 993.91 985.08 2885.85 2580.50 2430.80
0.93 0.59 1.45 0.61 6263.00 8669.00 8818.00 11266.00 73.63 15.01 106.30 136.00 1.70
145.95 240.55 8.37 14.01 2587 2672
215.31 333.82 54.05 63.28 13729.00 18555.00 23909.00 26458.00 303.01 699.46 669.60 617.40 533.40
120.98 100.32 0.10 0.50 2609.00 3140.00 5755.00 7279.00 4.45 1487.97 1181.10 876.50 720.90
481.05 620.61 64.67 90.72 24430.00 30243.00 29382.00 35492.00 612.90 661.40 668.10 873.40 1120.70
784.29 947.82 204.33 244.96 18293.00 19950.00 65377.00 68278.00 612.78 652.08 671.50 854.90 1056.20
650.52 784.29 168.80 204.33 16076.00 18293.00 19950.00 65377.00 530.36 612.78 672.60 671.50 854.90
168.84 226.54 8861.00 9864.00 11713.00 16340.00 91.87 154.52 284.00 331.80 473.20
-130.56 171.99 -7135.00 -4338.00 4850.00 -9422.00 -79.74 -1566.19 -79.40 -93.30 -195.90
136.50 173.49 2105.00 1758.00 2629.00 2601.00 35.21 51.24 76.20 80.70 152.90
46.52 -6.62 -2096.00 -4999.00 -16909.00 -6629.00 -30.43 1386.75 -230.60 -258.70 -282.50
0.00 0.00 2715.00 3168.00 4353.00 5082.00 9.68 10.58 11.60 12.70 15.70
0.00 0.00 0.00 0.00 0.00 0.00
0.00
1.05 1.21 12.36 10.54 9.71 1.83

3.25 3.4 618.60 635.14
90.88 132.1 7228 8608 3365 10783
SYK SYK SYK TEVA Teva TEVA TOL TOL TOL TOL TOL TOL
12/31/02 12/31/03 12/31/04 12/31/02 12/31/03 12/31/04 10/31/00 10/31/01 10/31/02 10/31/03 10/31/04 10/31/05
3011.60 3625.30 4262.30 2518.60 3276.40 4798.90 1801.66 2208.00 2315.44 2758.44 3861.94 5793.43
2602.30 3011.60 3625.30 2077.40 2518.60 3276.40 1455.52 1801.66 2208.00 2315.44 2758.44 3861.94
1111.20 1312.40 4262.30 1423.20 1757.50 2559.60 1366.87 1623.74 1681.00 1995.31 2763.05 3927.11
963.80 1111.20 1312.40 1230.10 1423.20 1757.50 1131.25 1366.87 1623.74 1681.00 1995.31 2763.05
40.30 22.60 6.80 25.10 34.00 31.20 46.17 58.25 64.53 73.25 93.30 125.28
506.70 652.50 717.00 499.40 872.40 603.70 230.97 337.89 347.32 411.15 647.43 1323.13
161.10 199.00 251.30 84.80 181.50 267.20 85.02 124.22 127.43 151.33 238.32 517.02
345.60 453.50 465.70 410.30 691.00 331.80 145.94 213.67 219.89 259.82 409.11 806.11
407.60 406.80 410.30 580.90 536.80 612.70 74.83 77.37 75.48 75.54 81.17 168.55
406.00 407.60 406.80 561.80 580.90 536.80 74.87 74.83 77.37 75.48 75.54 162.33
37.80 65.90 349.40 1045.60 1379.40 1040.90 161.86 182.84 102.34 425.25 580.86 689.22
50.10 37.80 65.90 790.10 1045.60 1379.40 96.48 161.86 182.84 102.34 425.25 580.86
406.70 498.60 751.10 1074.70 1332.40 1874.30 113.03 74.48 95.50 113.63 146.21 185.62
332.10 406.70 498.60 817.60 1074.70 1332.40 87.47 113.03 74.48 95.50 113.63 146.21
426.50 467.90 552.50 781.10 1004.60 1286.30 1712.38 2183.54 2551.06 3080.35 3878.26 5068.62
399.80 426.50 467.90 570.20 781.10 1004.60 1443.28 1712.38 2183.54 2551.06 3080.35 3878.26
1151.30 1397.60 2142.60 2901.40 3716.40 4201.50 1987.30 2484.90 2812.40 3708.30 4759.20 6111.90
519.20 604.70 700.50 675.40 827.40 1278.20 24.08 33.10 38.50 43.71 52.43 79.52
2815.50 3159.10 4083.80 4626.80 5915.90 9632.00 2030.25 2532.20 2895.37 3787.39 4905.58 6343.84
2423.60 2815.50 3159.10 3460.20 4626.80 5915.90 1668.06 2030.25 2532.20 2895.37 3787.39 4905.58
10.70 7.30 9.30 738.50 644.20 560.40 326.54 362.71 253.19 281.70 340.38 250.55
106 137.8 214.5 785.7 1050.7 1643.5 110.9 133 126.39 151.73 181.97 256.56
707.50 834.40 1113.50 1524.20 1694.90 2203.90 815.60 950.00 946.20 1144.00 1690.00 2086.30
491.00 18.80 0.70 1161.40 815.40 1728.40 469.50 669.60 819.70 1166.70 1295.67 1490.03
1442.60 1868.10 2297.60 1345.70 1960.30 2171.40 668.61 882.28 1101.80 1361.62 1770.73 2576.06
1498.20 2154.80 2752.00 1829.40 3289.40 5388.90 745.15 912.58 1129.51 1476.63 1919.99 2763.57
1056.20 1498.20 2154.80 1380.70 1829.40 3289.40 616.33 745.15 912.58 1129.51 1476.63 1919.99
516.20 648.50 593.30 353.70 626.60 1248.80 -16.86 -148.38 -94.11 -44.72 123.70 334.70
-311.80 -151.60 -324.00 273.20 353.70 626.60 4.17 0.73 -19.50 -218.30 -7.40 31.57
138.20 140.80 179.30 160.40 207.50 311.00 9.42 15.02 14.17 15.48 20.41 43.03
-224.90 -476.30 10.60 337.50 29.60 852.40 78.07 168.63 33.10 395.18 115.05 -142.88
19.70 23.70 28.00 46.60 76.30 120.70 0.00 0.00 0.00 0.00 0.00
1.99 2.13 3.19 5.49 8.13 11.15 21.50 37.91 29.04

12.3 24 18.18 15.32 15.53 15.25 26.16
328.5 434.4 440 351.8 636.8 286.9 136.6 202.6 205.3 245.20 391.90 790.4
profit Version 1.0.51
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good ACS ACS ACS ACS ACS
Profitability Measures User Criteria 6/30/2000 6/30/2001 6/30/2002 6/30/2003 6/30/2004
Pretax Profit Margin % Pretax profit margin=(Pretax profit / sales ) >15% 9.9% 10.7% 11.8% 13.0% 20.2%
Net Profit Margin (Profitability) % Net profit margin = (Net Profit / Sales ) >10% 5.6% 6.5% 7.5% 8.1% 12.9%
Asset Turnover(Efficiency) Sales / Avg Annual Assets Chk Chgs 1.36 1.16 1.16 1.07 1.08
Financial Leverage(Gearing) Avg Annual Assets / Avg Shareholder Equity Chk Chgs 2.18 2.22 1.78 1.57 1.52
Return on Equity % Return on Equity= (Net Profit / Average Equity) >15% 16.6% 16.8% 15.4% 13.6% 21.1%
Retained to Common Eqty % ROE x (earnings - dividends)/ earnings >= Grth Rt 16.6% 16.8% 15.4% 13.6% 21.1%
Growth of Debt % Growth of annual debt < ROE NA NA 8.7% -29.5% -25.1%
Return on Invested Capital ROIC = (Net Profit) / (Avg. Equity + LTD) >15% 9.2% 9.3% 10.4% 11.1% 18.4%
Return on Total Assets Return on total assets = (Net Profit / total assets) Cmp Ind 6.6% 7.1% 6.7% 8.3% 13.6%
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0% 44.4% 5.7% 62.0% 77.7% -10.1%
EPS Net Income / Weighted Average Shares > Prior Yr 0.98 1.15 1.67 2.14 3.79
Cash From Operations/Per Share Net Cash from Operations / Avg Weighted Shares >EPS 1.41 1.22 2.71 3.80 3.41
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr NA -13.8% 122.1% 40.5% -10.3%
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% -3.4% -0.4% -5.4% -6.7% 1.4%
Impact on NI of Expensing Stk Options (NI if Stk Opt Expensed-NI)/NI >-5% -6.7% -6.6% -5.2% -5.7% -3.9%
Retained Earnings/Shareholder Equity Retained Earnings/Shareholder Equity SGR 56.3% 60.3% 36.4% 44.1% 61.8%
Free Cash Flow ($M) Net Cash from Operations - CAPEX > Prior Yr 86 43 228 340 252
Free Cash Flow Margin % (NCO-CAPEX)/Sales >10% 4.4% 2.1% 7.4% 9.0% 6.1%
Operating Cash Flow Margin %OCF Margin=Net Cash from Operations/Revenue > 15% 8.0% 6.9% 12.1% 14.4% 11.6%
Operating Cash Flow Coverage NCO / (Absolute Value (NCI+NCF) > 0.9 1.11 2.53 0.64 1.03 1.06
Pretax Profit 195 221 360 491 829
Free Cash Flow Productivity (Net Cash from Operations-CAPEX)/Earnings >90% 78.9% 31.9% 99.1% 110.7% 47.5%
CAPEX / Sales % CAPEX/Sales Cmp Ind 3.6% 4.8% 4.7% 5.4% 5.5%
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33 0.74 0.74 0.34 0.21 0.14
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 3.35 4.60 1.91 0.92 0.79
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 2.40 2.42 1.54 0.81 0.35
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -0.24% -4.35% -18.03% -4.34% 2.64%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% 10.12% 9.20% 8.10% 9.04% 9.64%
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 -483.98 -410.21 -675.75 -448.89 -297.59
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 -4.34 -3.52 -4.92 -3.13 -2.13
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5 0.1 0.4 0.0 0.1 0.2
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 55.8% 444.6% -86.1% 51.3% 50.3%
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5 9.1 10.3 12.8 20.5 49.7
Current Ratio Current ratio= Current Assets / Current Liabilities > 2.0 2.15 2.88 1.80 1.76 1.64
Quick Assets Ratio Quick Assets Ratio= (C&E+STI+MS+AR) / Current Liabilities > 1.0 1.7 2.5 1.6 1.6 1.5
Foolish Flow Ratio Foolish Flow Ratio = (CA-C&E)/CL-STD) <1.25 2.05 2.04 1.73 1.67 1.52
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0% 81.1% 18.1% 56.0% 13.4% 4.5%
Change in Sales % Sales CY / Sales PY >12% 19.5% 5.1% 48.4% 23.6% 8.4%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% 61.6% 12.9% 7.6% -10.2% -3.9%
Days Sales Outstanding CY AR CY / (Sales CY / 365) < PY 107.8 83.5 87.8 80.5 77.6
Days Sales Outstanding PY AR PY / (Sales PY / 365) 71.1 74.4 83.5 87.8 80.5
Inventory Turnover Rate (CY) COG CY / Inv CY > PY 116.7 105.3 138.6 274.9 No Inv
Inventory Turnover Rate (PY) COG PY / Inv PY 51.8 116.7 105.3 138.6 No Inv
% Change in Inventory INV CY / INV PY -46.9% 17.3% 13.4% -35.9% -100.0%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -66% 12% -35% -60% -108%
Plant Turnover Ratio Sales CY / PP&E Incr YTY 10.1 8.7 7.8 7.9 7.9
CEO Pay as % of Net Income CEO Total Compensation /Net Income NA NA NA 0.80% 0.42%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good ACS BBBY BBBY BBBY BBBY
Growth of Debt % Growth of annual debt < ROE -31.3% #REF! NA #REF! NA
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0% 77.8% 15.1% 53.9% 38.8% 37.3%
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 66.3% NA 67.4% 23.1% 29.3%
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% -7.4% -2.5% -8.3% -6.1% -5.9%
Pretax Profit 641 282 357 491 650
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33 0.09 No Debt No Debt No Debt No Debt
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 0.35 No Debt No Debt No Debt No Debt
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 0.30 No LTD No LTD No LTD No LTD
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% 6.63% -1.61% -1.98% -0.83% -1.18%
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 -194.57 239.33 429.50 616.60 866.60
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 -1.49 0.82 1.44 2.05 2.84
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5 0.2 No Debt No Debt No Debt No Debt
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% -18.5% 66.2% 79.5% 43.6% 40.5%
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5 35.5 >99 >99 >99 >99
Turnover Ratios
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% 15.6% 0.0% 0.0% 0.0% 0.0%
Inventory Turnover Rate (CY) COG CY / Inv CY > PY No Inv 2.3 2.3 2.3 2.6
Inventory Turnover Rate (PY) COG PY / Inv PY No Inv 2.3 2.3 2.3 2.3
% Change in Inventory INV CY / INV PY No Inv 29.0% 24.3% 21.4% 10.6%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% 0% 0% 2% -4% -12%
CEO Pay as % of Net Income CEO Total Compensation /Net Income 0.41% NA 0.33% 0.28% 0.23%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good BBBY BFAM BFAM BFAM BFAM
Growth of Debt % Growth of annual debt < ROE NA NA NA 391.0% -21.1%
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 11.7% NA 45.6% -35.0% 16.4%
Pretax Profit 811 20 26 35 47
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33 No Debt 0.01 0.00 0.02 0.01
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 No Debt 0.03 0.01 0.09 0.06
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 No LTD 0.03 0.01 0.05 0.02
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -0.64% -2.22% -1.76% -2.67% -4.11%
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 851.45 11.88 27.65 31.24 40.37
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 2.78 0.46 1.06 1.17 1.45
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5 No Debt 14.3 52.0 12.7 20.2
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5 >99 >99 1.3 1.2 1.3
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0% 0.0% 11.7% -15.6% 23.8% -6.3%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% 0.0% -7.1% -33.4% 7.8% -23.0%
Inventory Turnover Rate (CY) COG CY / Inv CY > PY 2.6 No Inv No Inv No Inv No Inv
Inventory Turnover Rate (PY) COG PY / Inv PY 2.6 No Inv No Inv No Inv No Inv
% Change in Inventory INV CY / INV PY 13.8% No Inv No Inv No Inv No Inv
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -1% 0% 0% 0% 0%
CEO Pay as % of Net Income CEO Total Compensation /Net Income 0.20% 2.39% 2.17% 1.94% 2.08%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good BMET BMET BMET BMET BMET
Growth of Debt % Growth of annual debt < ROE NA #REF! 44.2% 26.1% 21.2%
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0% -20.7% -3.6% -23.2% 8.2% 18.6%
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr NA 36.4% -3.5% 74.8% 26.5%
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% 3.1% 0.5% 3.7% -1.5% -3.5%
Pretax Profit 281 311 376 452 509
Capital Structure
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 No LTD No LTD No LTD No LTD No LTD
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -0.53% -1.31% -0.18% 3.63% 1.60%
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 28.9% 16.1% -35.6% 41.9% -35.6%
Turnover Ratios
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% 0.5% 18.5% -3.2% -2.1% -4.7%
Inventory Turnover Rate (CY) COG CY / Inv CY > PY 1.2 1.1 1.0 1.1 1.2
Inventory Turnover Rate (PY) COG PY / Inv PY 1.2 1.2 1.1 1.0 1.1
% Change in Inventory INV CY / INV PY 8.9% 15.6% 20.8% 6.2% 9.3%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -2% 4% 5% -10% -7%
CEO Pay as % of Net Income CEO Total Compensation /Net Income NA NA 0.21% 0.19% 0.18%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good BMET CDWC CDWC CDWC CDWC
Growth of Debt % Growth of annual debt < ROE 147.3% NA NA NA NA
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0% 16.9% 79.3% 24.9% -28.4% -23.7%
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 7.7% NA -22.7% -44.5% 46.2%
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% -3.1% -15.9% -4.5% 4.1% 4.0%
Pretax Profit 550 280 306 290 400
Capital Structure
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% 1.19% 1.90% 0.94% 2.40% -0.44%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% 3.17% 14.19% 12.89% 12.68% NA
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0% 3.0% -5.6% 4.6% 33.3% 30.6%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -13.4% -8.7% -3.0% 23.9% 7.6%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% 4% 5% 19% 13% -7%
CEO Pay as % of Net Income CEO Total Compensation /Net Income 0.17% 0.83% 0.91% 0.97% NA
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good EDMC EDMC EDMC EDMC FAST
Growth of Debt % Growth of annual debt < ROE NA 34.6% 349.7% 83.1% NA
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr NA -25.3% 100.6% 17.9% NA
Free Cash Flow ($M) Net Cash from Operations - CAPEX > Prior Yr 55 -1 83 122 8
Free Cash Flow Margin % (NCO-CAPEX)/Sales >10% 11.0% -0.2% 9.7% 12.0% 1.1%
Pretax Profit 67 91 131 169 131
Free Cash Flow Productivity (Net Cash from Operations-CAPEX)/Earnings >90% 130.0% -2.5% 107.2% 120.1% 10.1%
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33 0.08 0.09 0.24 0.11 No Debt
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 0.28 0.48 0.79 0.36 No Debt
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 0.04 0.03 0.02 0.02 No LTD
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -11.17% -5.89% -2.53% -0.38% 0.00%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% 5.46% 7.71% 9.15% 7.08% NA
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 63.52 51.05 -5.46 106.37 23.74
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 0.92 0.70 -0.07 1.42 0.31
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5 3.2 2.3 1.0 2.5 No Debt
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 95.6% 6.0% 38.4% 43.6% -14.8%
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5 44.4 72.3 53.7 >99
Turnover Ratios
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% 0.0% 5.9% -4.8% -8.4% 3.3%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% 1% -17% -19% -8% 12%
CEO Pay as % of Net Income CEO Total Compensation /Net Income 1.22% 1.06% 1.33% NA 0.15%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good FAST FAST FAST FAST FDS
Growth of Debt % Growth of annual debt < ROE NA NA NA NA NA
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0% 29.5% -76.7% 7.7% -56.2% 48.5%
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 137.3% -80.6% 414.5% -36.7% NA
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% -4.7% 11.2% -1.1% 10.3% -10.5%
Pretax Profit 114 121 136 208 54
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33 No Debt No Debt No Debt No Debt No Debt
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 No Debt No Debt No Debt No Debt No Debt
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% 0.00% 0.00% -0.02% -0.12% -2.24%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% NA NA NA NA 7.96%
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5 No Debt No Debt No Debt No Debt No Debt
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 188.7% -25.0% 38.0% -45.0% 27.2%
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5 >99 >99 >99 >99 >99
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0% -4.5% 4.1% 22.0% 26.2% 16.8%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -12.8% -6.5% 12.1% 1.7% -8.2%
Inventory Turnover Rate (CY) COG CY / Inv CY > PY 2.7 2.1 2.2 2.0 No Inv
Inventory Turnover Rate (PY) COG PY / Inv PY 2.6 2.7 2.1 2.2 No Inv
% Change in Inventory INV CY / INV PY 6.7% 42.3% 7.2% 32.0% No Inv
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -2% 32% -3% 7% 0%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good FDS FDS FDS FDS FISV
Growth of Debt % Growth of annual debt < ROE NA NA NA NA NA
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 34.1% 12.2% 13.9% 15.5% NA
Pretax Profit 64 79 89 110 506
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33 No Debt No Debt No Debt No Debt 0.36
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 No Debt No Debt No Debt No Debt 1.34
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 No LTD No LTD No LTD No LTD 1.13
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -0.27% 0.13% 3.08% 0.90% -0.51%
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 130.84 169.26 98.10 76.02 -636.45
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 2.50 3.24 1.94 1.52 -3.25
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5 No Debt No Debt No Debt No Debt 0.2
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 65.0% 29.4% -42.0% -22.5% -28.4%
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5 >99 >99 >99 >99 2.0
Current Ratio Current ratio= Current Assets / Current Liabilities > 2.0 4.42 4.90 2.68 2.18 NA
Quick Assets Ratio Quick Assets Ratio= (C&E+STI+MS+AR) / Current Liabilities > 1.0 4.2 4.7 2.5 2.0 NA
Foolish Flow Ratio Foolish Flow Ratio = (CA-C&E)/CL-STD) <1.25 1.03 0.99 0.98 0.99 NA
Turnover Ratios
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -22.3% -0.2% 15.3% -6.5% 0.5%
Inventory Turnover Rate (CY) COG CY / Inv CY > PY No Inv No Inv No Inv No Inv No Inv
Inventory Turnover Rate (PY) COG PY / Inv PY No Inv No Inv No Inv No Inv No Inv
% Change in Inventory INV CY / INV PY No Inv No Inv No Inv No Inv No Inv
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% 0% 0% 0% 0% 0%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good FISV GNTX GNTX GNTX GNTX
Asset Turnover(Efficiency) Sales / Avg Annual Assets Chk Chgs 0.48 0.78 0.71 0.68
Growth of Debt % Growth of annual debt < ROE -24.3% NA NA NA NA
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 16.4% NA 1.6% 38.2% -3.5%
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% -3.9% -3.4% NA -6.0% -1.4%
Pretax Profit 641 105 97 127 158
Capital Structure
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 0.64 No LTD No LTD No LTD No LTD
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -0.69% -0.69% -0.46% -0.96% -1.41%
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 217.3% 46.1% 48.5% 4.9% 82.5%
Current Ratio Current ratio= Current Assets / Current Liabilities > 2.0 NA 9.68 12.38 9.53 9.61
Quick Assets Ratio Quick Assets Ratio= (C&E+STI+MS+AR) / Current Liabilities > 1.0 NA 8.8 11.3 8.7 9.0
Foolish Flow Ratio Foolish Flow Ratio = (CA-C&E)/CL-STD) <1.25 NA 2.65 2.58 2.10 1.82
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0% 4.8% 16.1% -10.2% 12.2% 64.3%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -22.6% 2.7% -14.5% -15.2% 45.6%
Inventory Turnover Rate (CY) COG CY / Inv CY > PY No Inv 14.3 13.1 13.3 13.0
Inventory Turnover Rate (PY) COG PY / Inv PY No Inv 14.9 14.3 13.1 13.3
% Change in Inventory INV CY / INV PY No Inv 21.1% 19.2% 23.2% 18.0%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% 0% 8% 15% -4% -1%
CEO Pay as % of Net Income CEO Total Compensation /Net Income NA NA NA 0.46% 0.39%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good GNTX HD HD HD HD
Growth of Debt % Growth of annual debt < ROE NA NA -19.0% -14.3% 2.8%
Impact on NI of Expensing Stk Options (NI if Stk Opt Expensed-NI)/NI >-5% -12.9% NA -8.0% -6.8% -5.5%
Pretax Profit 166 4217 4957 5872 6843
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33 No Debt 0.10 0.07 0.07 0.06
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 No Debt 0.55 0.21 0.28 0.21
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 No LTD 0.30 0.21 0.18 0.10
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -0.88% -0.43% -0.04% 0.38% 2.35%
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 494.88 -1372.00 1291.00 925.00 1487.00
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 6.32 -0.58 0.55 0.39 0.65
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5 No Debt 0.1 2.0 1.7 2.1
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 25.7% 4.1% 1338.4% -11.5% 26.6%
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5 >99 201.8 178.0 159.7 111.4
Turnover Ratios
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -12.7% 23.2% -6.9% 7.8% -8.9%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% 38% 0% -15% 15% -2%
CEO Pay as % of Net Income CEO Total Compensation /Net Income 0.39% NA 0.46% 0.32% 0.27%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good HD KNX KNX KNX LNCR
Growth of Debt % Growth of annual debt < ROE 58.2% NA NA NA NA
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 9.0% NA 51.3% 16.6% NA
Free Cash Flow ($M) Net Cash from Operations - CAPEX > Prior Yr 2956 14 14 -17 159
Free Cash Flow Margin % (NCO-CAPEX)/Sales >10% 4.0% 4.8% 4.1% -3.8% 19.6%
Pretax Profit 7912 47 59 80 218
Free Cash Flow Productivity (Net Cash from Operations-CAPEX)/Earnings >90% 59.1% 49.0% 39.8% -35.0% 118.2%
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33 0.09 0.07 No Debt No Debt 0.30
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 0.31 0.27 No Debt No Debt 0.96
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 0.21 0.22 No LTD No LTD 0.47
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% 3.19% -8.20% -0.55% -0.49% -1.19%
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 6.00 21.28 40.55 25.36 -214.91
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 0.00 0.37 0.71 0.44 -2.00
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5 1.0 2.4 No Debt No Debt 0.0
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% -24.1% 50.0% 12.0% -37.5% 160.9%
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5 114.0 44.7 67.7 >99 14.6
Turnover Ratios
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% 23.9% 13.3% -23.9% 20.0% 7.5%
% Change in Inventory INV CY / INV PY 11.0% -29.4% -0.7% 74.6% -26.4%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -2% -43% -20% 44% -42%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good LNCR LNCR LNCR ORLY ORLY
Growth of Debt % Growth of annual debt < ROE -6.3% 84.8% -11.3% NA 7.7%
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0% 51.1% 59.8% 53.3% -24.6% 27.5%
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 23.7% 35.7% 15.3% NA 105.4%
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% -8.6% -10.6% -9.3% 2.1% -2.4%
Impact on NI of Expensing Stk Options (NI if Stk Opt Expensed-NI)/NI >-5% -9.9% -7.4% -4.7% NA -8.8%
Free Cash Flow ($M) Net Cash from Operations - CAPEX > Prior Yr 205 243 330 -18 2
Free Cash Flow Margin % (NCO-CAPEX)/Sales >10% 21.3% 21.2% 26.0% -1.7% 0.2%
Pretax Profit 306 371 440 107 131
Free Cash Flow Productivity (Net Cash from Operations-CAPEX)/Earnings >90% 107.5% 104.7% 120.5% -27.9% 2.8%
Capital Structure
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% 0.46% 4.93% 1.96% -2.05% -1.72%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% 9.69% 10.90% 10.01% NA NA
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0% -0.8% 5.9% -8.8% 27.0% 9.5%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -19.0% -13.5% -19.4% 4.3% -10.7%
% Change in Inventory INV CY / INV PY 4.6% -16.2% -6.0% 20.4% 12.6%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -14% -36% -17% -2% -8%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good ORLY ORLY PFE PFE PFE
Retained to Common Eqty % ROE x (earnings - dividends)/ earnings >= Grth Rt 14.0% 16.0% 29.5% 31.2% -1.0%
Growth of Debt % Growth of annual debt < ROE -36.2% -17.2% NA 33.1% 23.4%
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 59.0% 31.3% NA 13.5% 3.1%
Pretax Profit 160 188 9984 11796 3246
Capital Structure
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -1.56% -2.17% 0.11% 1.89% -15.14%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% 5.96% 6.10% NA NA 8.61%
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 -100.81 -31.89 -257.00 742.00 -2621.00
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 -1.85 -0.57 -0.04 0.12 -0.36
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% -28.1% 227.2% 25.5% 45.7% -4.8%
Turnover Ratios
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -0.2% 2.8% -24.0% 9.0% 11.1%
% Change in Inventory INV CY / INV PY 3.9% 19.4% -8.0% 7.8% 112.8%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -11% 6% -19% -4% 75%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good PFE SYK SYK SYK SYK
Growth of Debt % Growth of annual debt < ROE 27.3% NA 1824.9% -14.3% -32.6%
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0% 43.8% -26.7% 290.5% 1363.9% 50.1%
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% -4.1% 3.4% -5.9% -9.7% -4.4%
Impact on NI of Expensing Stk Options (NI if Stk Opt Expensed-NI)/NI >-5% -5.1% NA NA NA NA
Pretax Profit 14007 194 60 30 335
Capital Structure
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -5.96% -83.66% 1.86% -106.23% -1.26%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% 8.34% NA NA NA NA
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 1348.00 272.99 -1360.77 -1203.90 -958.50
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 0.18 1.39 -7.07 -3.03 -2.38
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 66.4% -4.5% -59.5% -39.8% -35.3%
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0% 8.5% 6.1% 141.5% -11.3% -9.0%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -9.1% -1.6% 129.0% -101.9% -17.8%
% Change in Inventory INV CY / INV PY 16.9% 7.0% 376.2% -34.7% 1.6%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -1% -1% 364% -125% -7%
CEO Pay as % of Net Income CEO Total Compensation /Net Income NA NA NA NA NA
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good SYK SYK SYK SYK TEVA
Growth of Debt % Growth of annual debt < ROE -28.6% -30.6% -96.4% -61.7% NA
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 41.3% 8.7% 25.9% -9.3% NA
Impact on NI of Expensing Stk Options (NI if Stk Opt Expensed-NI)/NI >-5% NA -4.9% -4.2% -5.5% -14.3%
Pretax Profit 406 507 653 717 499
Capital Structure
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -0.94% -0.39% 0.20% -0.86% -3.40%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% NA NA 3.02% 5.85% NA
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 -672.50 -463.90 39.80 339.40 -854.30
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 -1.66 -1.14 0.10 0.83 -1.47
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% -7.2% -24.6% 74.3% 430.2% 32.3%
Turnover Ratios
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -17.0% 6.7% 2.2% 33.1% 10.2%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -12% -9% -11% 1% 16%
CEO Pay as % of Net Income CEO Total Compensation /Net Income 0.67% 0.57% 0.47% 0.69% NA
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good Teva TEVA TOL TOL TOL
Growth of Debt % Growth of annual debt < ROE NA 20.5% NA 29.7% #REF!
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0% -9.3% 276.4% -111.6% -169.4% -142.8%
Cash From Operations/Per Share Net Cash from Operations / Avg Weighted Shares >EPS 1.17 2.04 -0.23 -1.92 -1.25
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr 91.7% 74.6% NA 751.2% -35.0%
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% 1.2% -11.8% 8.8% 15.9% 11.6%
Free Cash Flow ($M) Net Cash from Operations - CAPEX > Prior Yr 419 938 -26 -163 -108
Free Cash Flow Margin % (NCO-CAPEX)/Sales >10% 12.8% 19.5% -1.5% -7.4% -4.7%
Operating Cash Flow Margin %OCF Margin=Net Cash from Operations/Revenue > 15% 19.1% 26.0% -0.9% -6.7% -4.1%
Operating Cash Flow Coverage NCO / (Absolute Value (NCI+NCF) > 0.9 1.63 0.84 -0.21 -0.88 -6.92
Pretax Profit 872 604 231 338 347
Free Cash Flow Productivity (Net Cash from Operations-CAPEX)/Earnings >90% 60.7% 282.6% -18.0% -76.5% -49.2%
Capital Structure
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 2.33 1.83 -47.21 -6.96 -11.40
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% 7.59% -14.14% 0.06% -3.40% 2.44%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% 3.39% NA NA NA 20.30%
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 31.9% -24.5% 67.8% 13.0% -44.0%
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0% 24.0% 40.7% 29.2% -34.1% 28.2%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -6.1% -5.8% 5.4% -56.7% 23.4%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% -1% -18% -5% 5% 12%
CEO Pay as % of Net Income CEO Total Compensation /Net Income NA NA 3.77% 3.81% 5.07%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good TOL TOL TOL
Profitability Measures User Criteria 10/31/2003 10/31/2004 10/31/2005
Pretax Profit Margin % Pretax profit margin=(Pretax profit / sales ) >15% 14.9% 16.8% 22.8%
Net Profit Margin (Profitability) % Net profit margin = (Net Profit / Sales ) >10% 9.4% 10.6% 13.9%
Asset Turnover(Efficiency) Sales / Avg Annual Assets Chk Chgs 0.83 0.89 1.03
Financial Leverage(Gearing) Avg Annual Assets / Avg Shareholder Equity Chk Chgs 2.56 2.56 2.40
Return on Equity % Return on Equity= (Net Profit / Average Equity) >15% 19.9% 24.1% 34.4%
Retained to Common Eqty % ROE x (earnings - dividends)/ earnings >= Grth Rt 19.9% 24.1% 34.4%
Growth of Debt % Growth of annual debt < ROE 35.0% 13.0% 6.4%
Return on Invested Capital ROIC = (Net Profit) / (Avg. Equity + LTD) >15% 10.5% 13.7% 21.0%
Return on Total Assets Return on total assets = (Net Profit / total assets) Cmp Ind 6.9% 8.3% 12.7%
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0% -117.2% -69.8% -58.5%
EPS Net Income / Weighted Average Shares > Prior Yr 3.44 5.04 4.78
Cash From Operations/Per Share Net Cash from Operations / Avg Weighted Shares >EPS -0.59 1.52 1.99
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr -52.5% -357.4% 30.3%
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3% 9.1% 6.6% 8.4%
Impact on NI of Expensing Stk Options (NI if Stk Opt Expensed-NI)/NI >-5% -5.6% -4.2% -1.9%
Retained Earnings/Shareholder Equity Retained Earnings/Shareholder Equity SGR 92.2% 92.2% 93.2%
Free Cash Flow ($M) Net Cash from Operations - CAPEX > Prior Yr -60 103 292
Free Cash Flow Margin % (NCO-CAPEX)/Sales >10% -2.2% 2.7% 5.0%
Operating Cash Flow Margin %OCF Margin=Net Cash from Operations/Revenue > 15% -1.6% 3.2% 5.8%
Operating Cash Flow Coverage NCO / (Absolute Value (NCI+NCF) > 0.9 -0.25 1.15 3.01
Pretax Profit 411 647 1323
Free Cash Flow Productivity (Net Cash from Operations-CAPEX)/Earnings >90% -23.2% 25.2% 36.2%
CAPEX / Sales % CAPEX/Sales Cmp Ind 0.6% 0.5% 0.7%
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33 0.98 0.85 0.63
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3 -32.39 13.23 5.20
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1 2.25 1.58 0.92
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0% -0.08% -7.44% -3.83%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5% 20.56% 18.78% 15.52%
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0 -1023.15 -1055.18 -1051.36
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0 -13.54 -13.00 -6.24
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5 0.3 0.4 0.4
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0% 315.5% 36.6% 18.7%
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5 6.6 7.9 11.6
Current Ratio Current ratio= Current Assets / Current Liabilities > 2.0 3.24 2.82 2.93
Quick Assets Ratio Quick Assets Ratio= (C&E+STI+MS+AR) / Current Liabilities > 1.0 0.5 0.4 0.4
Foolish Flow Ratio Foolish Flow Ratio = (CA-C&E)/CL-STD) <1.25 3.81 3.10 2.95
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0% 19.0% 28.7% 27.0%
Change in Sales % Sales CY / Sales PY >12% 19.1% 40.0% 50.0%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0% -0.1% -11.3% -23.1%
Days Sales Outstanding CY AR CY / (Sales CY / 365) < PY 15.0 13.8 11.7
Days Sales Outstanding PY AR PY / (Sales PY / 365) 15.1 15.0 13.8
Inventory Turnover Rate (CY) COG CY / Inv CY > PY 0.6 0.7 0.8
Inventory Turnover Rate (PY) COG PY / Inv PY 0.7 0.6 0.7
% Change in Inventory INV CY / INV PY 20.7% 25.9% 30.7%
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0% 2% -14% -19%
Plant Turnover Ratio Sales CY / PP&E Incr YTY 63.1 73.7 72.9
CEO Pay as % of Net Income CEO Total Compensation /Net Income 8.27% 9.27% 3.60%
profit
Measure - Unhide Col. B for detail See"How to Input Data & Interpret Good
Profitability Measures User Criteria
Pretax Profit Margin % Pretax profit margin=(Pretax profit / sales ) >15%
Net Profit Margin (Profitability) % Net profit margin = (Net Profit / Sales ) >10%
Asset Turnover(Efficiency) Sales / Avg Annual Assets Chk Chgs
Financial Leverage(Gearing) Avg Annual Assets / Avg Shareholder Equity Chk Chgs
Return on Equity % Return on Equity= (Net Profit / Average Equity) >15%
Retained to Common Eqty % ROE x (earnings - dividends)/ earnings >= Grth Rt
Growth of Debt % Growth of annual debt < ROE
Return on Invested Capital ROIC = (Net Profit) / (Avg. Equity + LTD) >15%
Return on Total Assets Return on total assets = (Net Profit / total assets) Cmp Ind
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1 > 0%
EPS Net Income / Weighted Average Shares > Prior Yr
Cash From Operations/Per Share Net Cash from Operations / Avg Weighted Shares >EPS
Growth in Cash from Operations/Share % (CFO/share CY - CFO/share PY) /CFO/Share PY >EPS Gr
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2 < 3%
Impact on NI of Expensing Stk Options (NI if Stk Opt Expensed-NI)/NI >-5%
Retained Earnings/Shareholder Equity Retained Earnings/Shareholder Equity SGR
Free Cash Flow ($M) Net Cash from Operations - CAPEX > Prior Yr
Free Cash Flow Margin % (NCO-CAPEX)/Sales >10%
Operating Cash Flow Margin %OCF Margin=Net Cash from Operations/Revenue > 15%
Operating Cash Flow Coverage NCO / (Absolute Value (NCI+NCF) > 0.9
Pretax Profit
Free Cash Flow Productivity (Net Cash from Operations-CAPEX)/Earnings >90%
CAPEX / Sales % CAPEX/Sales Cmp Ind
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity <. 33
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO) <3.3
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income <1
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year > 0.0%
Stk Option Shares/Total Shares % Stk Opt Sh Outstanding/Total Shares <5%
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt >0
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Debt/Shares >0
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt > 1.5
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same for PY > 0%
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense >5
Current Ratio Current ratio= Current Assets / Current Liabilities > 2.0
Quick Assets Ratio Quick Assets Ratio= (C&E+STI+MS+AR) / Current Liabilities > 1.0
Foolish Flow Ratio Foolish Flow Ratio = (CA-C&E)/CL-STD) <1.25
Turnover Ratios
% Change in Accounts Receivable(AR) AR CY / AR PY < 0%
Change in Sales % Sales CY / Sales PY >12%
% Change in AR vs Sales Chg AR% - Chg Sales% < 0%
Days Sales Outstanding CY AR CY / (Sales CY / 365) < PY
Days Sales Outstanding PY AR PY / (Sales PY / 365)
Inventory Turnover Rate (CY) COG CY / Inv CY > PY
Inventory Turnover Rate (PY) COG PY / Inv PY
% Change in Inventory INV CY / INV PY
% Change in Inventory vs Sales Chg Inv% - Chg Sales% < 0%
Plant Turnover Ratio Sales CY / PP&E Incr YTY
CEO Pay as % of Net Income CEO Total Compensation /Net Income
profit
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Capital Structure
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profit
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profit
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profit
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profit .,/
Pretax Profit
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profit
Pretax Profit
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Color Formatting
Measure - Unhide Col. B for detail Good Green Yellow
Profitability Measures
Pretax Profit Margin >15% >15 7 to 15
Net Profit Margin (Profitability) >10% >10 5 to 10
Asset Turnover(Efficiency) Chk Chgs > prior Yr < 12% Decline
Financial Leverage(Gearing) Chk Chgs None
Return on Equity >15% >15 12 to 15
Retained to Common Eqty >= Grth Rt >15 12 to 15
Return on Invested Capital < ROE >15 12 to 15
Return on Total Assets >15% >15 7 to 15
Cash from Operations/Net Income % Cmp Ind >3 -1 to 3
EPS > 0% > PY
Cash From Operations/Per Share > Prior Yr >EPS EPS Neg
Growth in Cash from Operations/Share % >EPS >EPS GR
Quality of Earnings >EPS Gr <1 1 to 3
Impact on NI of Expensing Stk Options < 3% - 5 to 0 -10 to -5
Retained Earnings/Shareholder Equity >-5% > 50 25 to 50
Free Cash Flow ($M) SGR >0 <0
Free Cash Flow Margin % > Prior Yr > 10 7 to 10
Operating Cash Flow Margin >10% >15 7 to 15
Operating Cash Flow Coverage > 15% >0.9 0.8 to 0.9
Pretax Profit
CAPEX / Sales <.03 <.03 >03 - .05
Capital Structure
Total Debt to Equity Ratio Cmp Ind < .33
Total Debt/ NCO < .33
LTD / 2x Last Years Earnings <. 33 <1
Share Buyback/(Dilution) <3.3 >0 -2
Stk Option Shares/Total Shares % <1 <5 5 to 10
Net C&E+STI+MS-Total Debt > 0.0% >0
Net C&E+STI+MS-Total Debt per Sh <5% >0
C&E+STI+MS vs Debt Ratio >0 > 1.5 1 to 1.5
C&E+STI+MS Ratio CY/PY % >0 >0 <0
Interest Coverage Ratio > 1.5 >5 2 to 5
Current Ratio > 0% >2 1 to 2
Quick Assets Ratio >5 >1 <1
Foolish Flow Ratio > 2.0 <1 1 to 1.25
Turnover Ratios
% Change in Accounts Receivable(AR) <1.25 <0 >0
Change in Sales % 0 > 12 7 to 12
% Change in AR vs Sales < 0% <0 0 to 10
Days Sales Outstanding CY >12% < PY > PY
Days Sales Outstanding PY < 0% None
Inventory Turnover Rate (CY) < PY < PY < 70%PY
Inventory Turnover Rate (PY) 0 None
% Change in Inventory > PY None
% Change in Inventory vs Sales 0 <0 0 to 10
Plant Turnover Ratio 0 > PY < PY
CEO Pay as % of Net Income Incr YTY None
Cash Conversion Cycle(CCC) 0 None
r Formatting Value
Red 0=Lo, 5=Hi Comments
<7 1 SSG Provides- Comp Industry

<5 2 Provides trend and insight to ROE
> 12% decline 4 Provides trend and insight to ROE
4 Provides trend and insight to ROE
< 12 5 Must be evaluated carefully
< 12 3 VL Provides
< 12 4 Good measure of profitability - Trend
<7 4 Good measure of profitability - Trend
< -1 4 Check to see if CF >NI
< PY 1 SSG Provides
< EPS 4 Same as line 12
<EPS Gr 3
>3 5 Requires more digging
> 10 5 Need will go away once options expensed
< 25 1 Nice to look at
2 Nice to view
<0.9 3
Hidden
>.05 Varies by industry
> .33 1 NSA provides

> .33 5 Good check for excess debt
>1 5 Good check for excess debt
< -2 4 Useful to observe
> 10 5 Valuable - Criteria ?
<0 3 Nice measure
<0 3 Nice measure
<1 3 Nice measure
3 Nice measure
<2 5 Very useful
<1 1 Minimal value
1 Minimal value
> 1.25 2 Have not dug into
3 Nice to look at- Value =?

<7 3 SSG provides
> 10 4 Need quarterly to be more useful
3 Nice to observe
3 Nice to observe
4 Value ?
3
3 Nice to observe
> 10 5 Need quarterly to be more useful
3 Have not dug into
3 Tough to decide on criteria
? Have not used enough to assess

Ratio Analysis Sample

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Making Short Work Of An Annual Report 3/29/05

"If All Else Fails, Read the Directions"

What If you don't know much about Excel?

No similar changes should be made to the "Input Data" worksheet.

Abbreviations and Definitions

Output Analysis, Criteria and Interpretation

% Pretax profit margin=(pretax profit / sales ) x 100.

% Net profit margin = (net profit /sales ) x 100.

% Return on Equity (ROE) = (net profit / average equity) x 100.

% Retained to Common Equity (term used in Valueline)

%Return on total assets= (net profit / total assets) x 100.

%Operating Cash Flow Margin= (net cash from Operations / sales )

Operating Cash Flow Coverage Ratio =

Total Debt to Equity Ratio = Total Debt / Average Equity

Stock Option Shares / Total Number of Shares

Net Cash= (Cash & Equivalents - Long Term Debt):

Interest Coverage Ratio = (Pretax Profit + Interest Expense) / Interest Expense

Current Ratio = Current Assets / Current Liabilities

Days Sales Outstanding ( CY)

Inventory Turnover Rate (CY)

Turnover rate (CY) = Cost of Goods Sold (CY) / Inventory (CY)

Plant Turnover Ratio = Sales / Plant, Property, and Equipment (PP&E)

Annual Report Terminology

Accounts Receivable = Trade Receivables

Additional Paid-in Capital = Capital in Excess of Stated Value

Balance Sheet = Statement of Financial Condition

Capital Expenditures includes: Acquisition of Property and Equipment

Cash includes: Cash Equivalents

Cost of Goods Sold includes: Costs of Sales

Current Assets includes: Cash

Current Liabilities includes: Accounts payable

Earnings = Net Income

Income Statement = Earnings Statement

Inventories = Merchandise Inventories

Earnings Before Income Taxes = Income (Loss) Before Income Taxes

Earnings per Share = Net Income per Share

Long-Term Debt includes: Notes/Loans payable

Net Income = Net Profit

Shareholder Equity = Shareholders' Investment

Short-Term Debt includes: Debt Payable Within One Year

0.63 0.66 0.67 0.72 0.76 1.66 0.39 0.42 0.44

1.05 1.21 12.36 10.54 9.71 1.83

1.99 2.13 3.19 5.49 8.13 11.15 21.50 37.91 29.04

<7 1 SSG Provides- Comp Industry

> .33 1 NSA provides

3 Nice to look at- Value =?

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