Financial Analysis of a Company
Title: Financial Analysis of a Company
Category: /Business & Economy
Details: Words: 3381 | Pages: 12 (approximately 235 words/page)
Financial Analysis of a Company
Category: /Business & Economy
Details: Words: 3381 | Pages: 12 (approximately 235 words/page)
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The Loewen Group Inc. was founded in 1969. The company has two major headquarters in North America, one in Burnaby, British Colombia and a second in Cincinnati, Ohio. Loewen Group Inc. (L.G.I.) is the largest funeral services enterprise in Canada and is the second largest company in the North American Funeral Services Industry. L.G.I. owns 918 funeral homes and 269 cemeteries and also engages in the pre-need selling of funeral services
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thousands of U.S. Dollars)
1995 1994 Symbols
Total assets 2262980 1326275 A
Total liabilities 1648298 915136 L
Total equity 614682 411139 E
Total revenue 599939 417328 REV
Net income (76684) 38494 NI
Interest expense 50913 34203 INT
Income tax rate (38.1) % 33.9 % TR
After-tax interest expense 50913 * 1.381 = 70311 34203 * .661 = 22608 ATI = INT (1 - TR)
ROE (return on equity) (76684) / 614682 = (0.125) 38494 / 411139 = 0.094 NI / E
SR (sales return before interest) [(76684) + 70311] / 599939 = (0.011) [38494 + 22608] / 417328 = 0.146 [NI + ATI] / REV
AT (asset turnover) 599939 / 2262980 = 0.265 417328 / 1326275 = 0.315 REV / A
ROA (return on assets) [(76684) + 70311] / 2262980 = (0.003) [38494 + 22608] / 1326275 = 0.046 [NI + ATI] / A
IN (average interest rate after tax) 70311 / 1648298 = 0.043 22608 / 915136 = 0.025 ATI / L
D / E (debt-equity ratio) 1648298 / 614682 = 2.682 915136 / 411139 = 2.226 L / E