EXHIBIT 5 Effects of SFAS 158 on Selected Financial Ratios (Dollar amounts in billions)
Market capitalization 3M Alcoa Altria Amex AIG AT&T Boeing Caterpillar Citigroup Coca Cola DuPont Exxon Mobil General Electric General Motors Hewlett Packard Honeywell Intel IBM Johnson & Johnson JPMorgan Chase Merck Pfizer Procter & Gamble United Technologies Verizon Walt Disney Average Adjusted Adjusted Net Market-to- market-to- Return return income book ratio book ratio on equity on equity 6.001 2.136 4.268 6.148 1.770 1.996 5.844 5.921 2.105 6.191 4.310 3.284 3.105 1.253 2.351 2.990 3.004 3.563 4.687 1.340 4.505 2.646 10.185 3.781 2.476 2.522 3.885 8.197 2.305 4.920 6.407 1.785 2.462 25.962 9.200 2.147 6.338 6.130 3.415 3.378 (0.701) 2.418 3.721 3.011 5.449 4.905 1.356 4.994 2.760 10.816 4.611 3.370 2.572 5.305 0.317 0.092 0.292 0.354 0.121 0.088 0.233 0.338 0.218 0.298 0.230 0.325 0.150 (0.724) 0.065 0.147 0.239 0.240 0.275 0.079 0.258 0.123 0.415 0.181 0.186 0.097 0.214 0.433 0.100 0.337 0.369 0.122 0.108 1.033 0.526 0.223 0.305 0.328 0.338 0.163 N/M 0.066 0.183 0.240 0.367 0.288 0.080 0.287 0.128 0.441 0.220 0.254 0.099 0.281 Adjusted total debt-toequity 2.998 1.649 2.568 10.282 8.971 2.410 24.953 7.925 12.555 0.854 4.454 0.964 5.666 (20.021) 1.154 2.694 0.340 4.169 0.627 10.323 1.684 0.891 2.764 2.354 4.027 1.030 4.732
Total debt-to-equity 1.031 1.418 2.023 9.803 8.884 1.663 4.431 4.582 12.276 0.799 2.678 0.874 5.084 31.544 1.080 1.870 0.335 2.195 0.532 10.183 1.369 0.791 2.520 1.657 2.563 0.981 3.265
$ 60.61 $3,199 28.56 1,233
152.38 10,435 64.85 3,734
152.81 10,477 109.18 64.63 49.93 4,786 2,572 2,854
236.87 24,589 101.25 38.39 4,872 2,053
365.12 36,130 339.54 16,353 18.29 (10,567) 87.41 33.65 108.69 117.92 2,398 1,655 8,664 7,934
177.51 10,411 143.61 80.71 173.68 178.00 64.24 98.26 66.11 8,483 4,631 8,085 7,257 3,069 7,397 2,533
Note: This table shows the results of the new standard on selected financial ratios. An assumed tax rate of 35% is used. GM’s ratios were excluded from the computation of all averages due to analytical issues posed by negative numbers for some ratios. N/M indicates a ratio that is not meaningful due to negative numerator and denominator.
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MARCH 2007 / THE CPA JOURNAL