Financial Analysis of Privately Held Company vs Publicly Traded Company

GREAT FEATURE: To find the meaning or usage of any term, just click on the term to enter the Glossary.

MBA ratios allow comparison of one industry/firm to another. Since ratios look at relationships inside the industry/firm, an industry/firm of one size can be directly compared to a second industry/firm (or a collection of industries/firms) which may be larger or smaller or even in a different business. Financial Ratios are a method of comparison not dependent on the size of either industry/firm. Financial Ratios provide a broader basis for comparison than do raw numbers. However, ratios on their own, without year-to-year or other industry/firm comparative ratios, are of little use in judging the health or future of the industry/firm being analyzed. Your MBA Financial Analyst provides you with 28 conversions of financial numbers for an industry/firm into ratios and two predictors of the future: Altman Z-Score and Sustainable Growth Rate.

Private Company Id:100188		Lemon Lime Incorporated
Public Company: NASDAQ: ALCO		Alco, Inc.

	Lemon Lime Incorporated					ALCO
TERM (Click Term for Glossary)	Period 1	Period 2	Period 3	Period 4	Period 5	Year End
Net Sales in 1,000s	630.0	3,936.0	8,005.0	16,426.0	26,019.0	68.3

PREDICTOR RATIOS:
Altman Z-Score	-4.20	4.67	7.23	9.82	12.20	3.16
Sustainable Growth Rate	-330%	59%	52%	60%	53%	8%

PROFITABILITY RATIOS:
Net Sales to Gross Sales	100.0%	100.0%	100.0%	100.0%	100.0%	N/A
Gross Profit Margin on Sales	84.1%	96.2%	96.3%	98.2%	98.8%	41.9%
Net Profit Margin (Pre-tax)	-202.5%	20.7%	41.9%	63.4%	75.4%	29.4%
Net Profit Margin (After-tax)	-202.5%	20.7%	23.2%	36.2%	43.4%	23.6%
Operating Expense to Sales	285.6%	74.3%	53.3%	34.2%	23.0%	70.6%
Operating Profit to Sales	-185.6%	25.7%	46.7%	65.8%	77.0%	29.4%
Basic Earning Power	-118.6%	33.4%	68.3%	86.3%	78.6%	11.2%
Return on Assets (After-tax)	-118.6%	33.4%	37.8%	49.4%	45.2%	9.0%
Return on Equity	-329.7%	59.5%	52.3%	60.2%	52.7%	14.3%

ASSET MANAGEMENT RATIOS:
Collection Period (Period Average)	N/A	N/A	N/A	N/A	N/A	72.4
Collection Period (Period End)	5.2	3.1	3.0	2.4	2.4	67.3
Inventory Turns (Period Average)	N/A	N/A	N/A	N/A	N/A	N/A
Inventory Turns (Period End)	0.5	0.5	1.0	1.0	1.0	213.3
Days Inventory	N/A	N/A	N/A	N/A	N/A	207.3
Working Capital Turnover	1.8	3.1	2.3	1.6	1.1	1.3
Fixed Asset Turnover	25.2	25.9	28.0	67.6	125.1	0.7
Total Asset Turnover	0.6	1.6	1.6	1.4	1.0	0.4

LIQUIDITY RATIOS:
Current Ratio	1.5	2.2	4.0	7.3	12.2	8.0
Quick Ratio	1.2	1.9	3.7	7.1	12.1	4.9
Sales/Receivables	70.0	119.3	123.2	150.7	149.5	5.4
Gearing Ratio	0.0%	0.0%	0.0%	0.0%	0.0%	29.3%

DEBT MANAGEMENT RATIOS:
Times Interest Earned	-181.3	59.1	240.9	744.4	1,402.6	7.7
Equity Multiplier	2.9	1.7	1.3	1.2	1.1	1.6
Fixed Assets (net)/Net Worth	0.07	0.11	0.08	0.02	0.01	0.92
Debt Ratio	65.2%	42.0%	23.7%	13.5%	8.1%	0.4
Debt to Equity	187.7%	72.5%	31.0%	15.5%	8.8%	0.6
Long-term-debt to Equity	0.0	0.0	0.0	0.0	0.0	0.4
Current-debt to Total Debt	100.0%	100.0%	100.0%	100.0%	100.0%	11.6%

Sample Accounting Ratios Report: Private Company vs. Public Company