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Steel Industry Financial Ratio

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Steel Industry Financial Ratio document sample

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									Benchmarking Financial
Performance and Key Ratios

   Kelly DiGiacomo, Steel Founders’ Society of America
Top Steel Foundry Trends To Notice
During the Presentation
    Net worth increase
    Liquidity increase
    Quicker trade receivables turnover
    Quicker inventory turnover
    Quicker trade payables turnover
    Officers’, directors’, & owners’ compensation
     trends


                                                     2
Data Presentation Format
    Steel foundries and other similar industries
         Including:
              Machine shops
              Fabricated structural metal manufacturing
              Iron and steel forging
              Iron foundries
         Median number of all reported companies used (companies
          with $0-$250 million in assets)
         Number of companies included in data survey varies by
          industry
    Steel foundries only, presented comparatively by
     company size (total assets or total sales)



                                                                    3
Liquidity Ratios




                   4
Current Ratio




                5
Quick Ratio




              6
Trade Receivables Turnover




                             7
Days’ Receivable




                   8
Inventory Turnover




                     9
Days’ Inventory




                  10
Trade Payables Turnover




                          11
Days’ Payable




                12
Working Capital Turnover




                           13
Leverage Ratios




                  14
Debt / Worth




               15
Fixed / Worth




                16
Operating Ratios




                   17
Return on Net Worth




                      18
Return on Assets




                   19
Sales / Total Assets




                       20
Expense to Sales Ratio




                         21
Officers’, Directors’, & Owners’ Comp /
Sales




                                          22
Ratio Variances Within Different Size
           Steel Foundries




                                        23
2008 Inventory & Trade Payables
Turnover – Steel Foundries




                                  24
2008 Profit Before Taxes / Tangible Net
Worth – Steel Foundries




                                          25
2008 Income/Expense Items As A
Percent of Net Sales – Steel Foundries




                                         26
Financial Statement Break-Downs
          Steel Foundries




                                  27
2004-2008 Assets Allocation – All Steel
Foundries




                                          28
2004-2008 Liabilities & Net Worth
Allocation – All Steel Foundries




                                    29
2008 Asset Allocation - Steel Foundries




                                          30
2008 Liability and Net Worth Allocation - Steel
Foundries




                                                  31
Quick Reference - Ratios
    Current Ratio – Total Current Assets / Total Current Liabilities
    Quick Ratio – Cash & Equivalents & Trade Receivables (Net) / Total
     Current Liabilities
    Trade Receivables Turnover – Net Sales / Trade Receivables (Net)
    Days’ Receivable – 365 / Trade Receivables Turnover
    Inventory Turnover – Cost of Sales / Inventory
    Days’ Inventory – 365 / Inventory Turnover
    Trade Payables Turnover – Cost of Sales / Trade Payables
    Days’ Payable – 365 / Trade Payables Turnover
    Working Capital Turnover – Net Sales / Net Working Capital
    Debt / Worth – Total Liabilities / Tangible Net Worth
    Fixed / Worth – Net Fixed Assets / Tangible Net Worth
    Profit Before Taxes / Tangible Net Worth
    Profit Before Taxes / Total Assets
    Sales / Total Assets
    Officers’, Directors, & Owners’ Comp / Sales



                                                                          32
Data Source
Annual Statement Studies
Financial Ratio Benchmarks
2008 2009 Version
Risk Management Association




                              33

								
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