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Modern Machine Company Financial Ratios

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RMA Chart Based on the RiskAnalyst industry comparison for NAICS code 423810 (Construction and Mining Machinery and Equipment Merchant Wholesalers), Modern Machinery compares favorably to their peers for liquidity, leverage, and profitability metrics. • The company's gross margin remains slightly below the industry average and in recent years has shown a slight decline, impacted by significant large equipment sales in recent years at lower margins. • Despite the lower gross margin, the company's profit before taxes has typically been above the industry average. The company's profit margin fell below the industry average in FY 2016 due to recent low margins on large equipment sales. • Receivable Days are above the Industry median, while seasonal …show more content…

and its domestic subsidiaries Modern Machinery Co. International Ltd and Modern Machinery Co. (Magadan), Inc.)) and Modern Machinery Far East LLC (a Russian entity). Modern Machinery Magadan LLC (a Russian LLC) has nominal value so it is not separately identified in the consolidating schedules. In addition, the audited and internal financial statements are combined to include Modern Machinery Canada, LLC, a related entity through common …show more content…

Losses/Gains on Derivatives (Interest Rate Swaps) are also treated as extraordinary items. Income Statement: Fiscal Year End 16: Sales/Revenue • Consolidated FY 2016 (per spreads) revenues increased 17.5% from prior year as a result of a changing sales mix with increased Komatsu sales of wholegoods. Domestic (US sales) improved approximately $10MM in FY 16 compared to FY 15. The sales mix changed with increased sale of wholegoods and reduction parts. Management noted that US Market share is at the highest ever achieved by company; growing in all but two markets. Foreign (Russian sales) were based on local currency but after conversion showed a 40% increase. Using YahooFinance!, we determined the ruble declined in value 17% against the US Dollar over the course of 2016. Demand for gold continues to drive revenue. We note that starting in FY 15 that the sale of parts which are part of service jobs in Russia are including in service revenue, which explains some of the change in the sales mix. Margin/Gross Profit • Consolidated gross margin (per spreads) decreased slightly from 20% at FYE 2015 to 19.9% at FYE 2016 due to the changing sales mix which are driven in large part by competition and economic

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Inventory Turnover = 33.7 = 467,029/13,852 Total Assets Turnover = 1.5 = 467,029/321,650 Accounts Receivable Turnover = 13.4 = 467,029/34,861 Average Collection Period = 27.2 = 34,861/(467,029/365) Gross Profit Margin = 1.0 = (467,029 – 10,572)/467,029 Net Profit Margin = 0.1 = 41,060/467,029 Return on Total Assets = 0.1 = 41,060/321,650 Return on Equity = 4.3 = 41,060/9,547 2012 Financial Ratios Current Ratio = 1.0 = 64,460/64,139 Quick Ratio =

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