FIN 400 The Arctic Cat Inc Financial Report This Portfolio Project has two parts: Calculations and a 4- to 6-page essay. While the calculation requirements
FIN 400 The Arctic Cat Inc Financial Report This Portfolio Project has two parts: Calculations and a 4- to 6-page essay. While the calculation requirements of this assignment are important, equally important are your discussion and analysis of the quantitative results. You will submit two documents: 1) a spreadsheet containing your horizontal and vertical analysis (Attached you will find the spread sheet) and 2) a word document containing your essay in Module 8. The first part was already completed, just focus on the second part please.Directions:Your paper must:
Be 4-6 pages in length.
Include a proper introduction and conclusion.
Include a reference page.
Provide your reader with an overall understanding of the financial health of your chosen firm including the following:
Discussion of the ratio analysis results, including rationale for the ratios chosen.
Discussion of all horizontal and vertical analysis from above.
Discussion of four items from the management discussion of the firm that support the conclusion formed in your discussion of the financial results. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME – USD ($)
$ in Millions
Income Statement [Abstract]
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Acquisition and integration costs
Restructuring charges and other, net
Impairment charges
Operating (loss) income
Other expenses:
Interest expense
Amortization of debt issuance costs
Loss on early extinguishment of debt
Foreign currency (gains) losses, net
Miscellaneous, net
Other expenses
(Loss) income from continuing operations before income taxes
Provision for income taxes
(Loss) income from continuing operations, net of taxes
Income (loss) from discontinued operations, net of taxes
Net (loss) income
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014
Horizontal Analysis
2017 -2016 2016-2015
$2,693.70
1,151.30
1,542.40
1,467.60
52.9
33.4
10.8
-22.3
$2,334.00
917.1
1,416.90
1,161.00
43.2
34
23.4
155.3
$1,914.30
667.8
1,246.50
1,002.50
8
10.5
9.7
215.8
$1,941.00
668.3
1,272.70
1,009.50
6.4
21.3
0
235.5
15%
26%
9%
26%
22%
-2%
-54%
-114%
22%
37%
14%
16%
440%
224%
141%
-28%
149.8
9.1
0
-18.5
0.8
141.2
-163.5
21.8
-185.3
2.1
-183.2
105.2
6.8
16.9
18.5
-0.6
146.8
8.5
25.5
-17
-4.9
-21.9
83.3
5.7
0
15.7
0.4
105.1
110.7
51.4
59.3
-3.2
56.1
84.4
5.5
2
25
1.2
118.1
117.4
77.8
39.6
1.3
40.9
42%
34%
-100%
-200%
-233%
-4%
-2024%
-15%
990%
-143%
737%
26%
19%
18%
-250%
40%
-92%
-50%
-129%
53%
-139%
zontal Analysis
2015-2014
-1%
0%
-2%
-1%
25%
-51%
Vertical Analysis
Dec. 31, 2017 Dec. 31, 2016 Dec. 31, 2015
-8%
100.00%
42.74%
57.26%
54.48%
1.96%
1.24%
0.40%
-0.83%
100.00%
39.29%
60.71%
49.74%
1.85%
1.46%
1.00%
6.65%
100.00%
34.88%
65.12%
52.37%
0.42%
0.55%
0.51%
11.27%
-1%
4%
-100%
-37%
-67%
-11%
-6%
-34%
50%
-346%
37%
5.56%
0.34%
0.00%
-0.69%
0.03%
5.24%
-6.07%
0.81%
-6.88%
0.08%
-6.80%
4.51%
0.29%
0.72%
0.79%
-0.03%
6.29%
0.36%
1.09%
-0.73%
-0.21%
-0.94%
4.35%
0.30%
0.00%
0.82%
0.02%
5.49%
5.78%
2.69%
3.10%
-0.17%
2.93%
CONSOLIDATED BALANCE SHEETS – USD ($)
$ in Millions
Dec. 31, 2017 Dec. 31, 2016
Current assets:
Cash and cash equivalents
$87.10
$186.40
Trade receivables, less allowance for doubtful accounts of $13.5 and $11.1 as of December
December 31, 2016,
444.8 31, 2017 and
423.9
Inventories
497.9
424.6
Deferred income taxes – current
Prepaid expenses and other
113.4
88.8
Total current assets
1,143.20
1,123.70
Property, plant and equipment, net of accumulated depreciation of $385.5 and $304.7
as of December
31, 2017 and Decemb
372.7
320.5
Deferred income taxes
138
149.7
Goodwill
692.5
689.5
Intangible assets, net of accumulated amortization of $130.9 and $84.8 as of December
31, 2017 and636.6
December 31, 2016, res
592.1
Other assets
118.4
103.5
Total assets
3,056.90
3,023.50
Current liabilities:
Short-term borrowings
12.4
10.8
Current portion of long-term debt
170.2
18.1
Accounts payable
336.9
296.9
Accrued expenses and other
412.8
382.9
Total current liabilities
932.3
708.7
Long-term debt
2,653.70
2,663.10
Long-term pension and other post-retirement plan liabilities
172.8
184.1
Other long-term liabilities
68.5
82.4
Stockholders’ deficiency:
Additional paid-in capital
1,040.00
1,033.20
Treasury stock, at cost: 1,114,528 and 1,024,908 shares of Class A Common Stock as of
December 31,-19.2
2017 and December 31
-21.7
Accumulated deficit
-1,560.80
-1,377.60
Accumulated other comprehensive loss
-228.4
-251.7
Total stockholders’ deficiency
-770.4
-614.8
Total liabilities and stockholders’ deficiency
3,056.90
3,023.50
Dec. 31, 2015 Dec. 31, 2014
Horizontal Analysis
2017-2016 2016-2015 2015-2014
$326.90
244.9
183.8
58
53.3
866.9
215.3
40.3
469.7
318
104.1
2,014.30
$275.30
238.9
156.6
58.4
44.6
773.8
212
53.1
464.1
327.8
113.3
1,944.10
-53%
5%
17%
11.3
30
201.3
272.4
515
1,803.70
185.3
97.8
1,026.30
-13.3
-1,355.70
-245.3
-587.5
2,014.30
Vertical Analysis
Dec. 31, 2017
28%
2%
16%
-8%
0%
-7%
14%
1%
-43%
73%
131%
-100%
67%
30%
49%
271%
47%
100%
-1%
50%
19%
3%
17%
-1%
20%
12%
2%
-24%
1%
-3%
-8%
4%
3%
15%
16%
0%
4%
37%
12%
5%
23%
19%
4%
100%
6.6
31.5
153.5
273.3
464.9
1,832.40
200.9
90
15%
840%
13%
8%
32%
0%
-6%
-17%
-4%
-40%
47%
41%
38%
48%
-1%
-16%
71%
-5%
31%
0%
11%
-2%
-8%
9%
0%
6%
11%
14%
30%
87%
6%
2%
1,020.90
-10.5
-1,411.80
-243.2
-644.1
1,944.10
1%
13%
13%
-9%
25%
1%
1%
44%
2%
3%
5%
50%
1%
27%
-4%
1%
-9%
4%
34%
-1%
-51%
-7%
-25%
100%
Vertical Analysis
Dec. 31, 2016 Dec. 31, 2015
6%
14%
14%
0%
3%
37%
11%
5%
23%
21%
3%
100%
16%
12%
9%
3%
3%
43%
11%
2%
23%
16%
5%
100%
0%
1%
10%
13%
23%
88%
6%
3%
1%
1%
10%
14%
26%
90%
9%
5%
34%
-1%
-46%
-8%
-20%
100%
51%
-1%
-67%
-12%
-29%
100%
Profitability Ratios
Gross Profit Margin
Net Profit Margin
Return on Assets
2017
57.26%
-6.80%
-5.99%
2016
60.71%
-0.94%
-0.72%
2015 Average
65.12% 61.03%
2.93% -1.60%
2.79% -1.31%
2017
1.23
0.69
2016
1.59
0.99
2015 Average
1.68
1.50
1.33
1.00
2017
5.41
1.41
2016
5.50
1.23
2015 Average
10.42
7.11
1.67
1.43
Liquidity Ratios
Current Ratio
Quick Ratio
Activity Ratios
Inventory Turnover Ratio
Fixed Assets Turnover Ratio
Leverage Ratios
Debt Ratio
2012
2013
2014 Average
125.20% 120.33% 129.17% 124.90%
Description
Working Capital/Total Assets
Retained Earnings/Total Assets
Earnings Before Interest and Tax/Total assets
Market Value of Equity/Total Liabilities
Sales/Total Assets
Altman Z-score
2017
2016
2015
0.068991 0.137258 0.174701
-0.51058 -0.45563 -0.67304
-0.00448 0.037605 0.096311
-0.20129 -0.16898 -0.22581
0.88
0.77
0.95
0.113597 0.321489 0.400088
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