Week 2 Assignment - Decisions for Quarter One and Quarterly Business ReviewPart I: Decisions for Quarter One. Prior to working on your Decisions for Quarter One, review the following through the Growi

 Financial Metrics

Metr ic s Q 1'1 9A Q 2'1 9A Q 3'1 9A Q 4'1 9A Q 1'2 0A Q 2'2 0A Q 3'2 0A Q 4'2 0A Q 1'2 1P Q 2'2 1P Q 3'2 1P Q 4'2 1P

R atio s

Varia ble C osts ( $ ) / S ale s ( $ ) 48.9 % 46.9 % 47.5 % 42.0 % 42.9 % 46.7 % 46.6 % 41.0 % 52.0 % 42.6 % 35.6 % 31.6 %

M ate ria ls ( $ ) / S ale s ( $ ) 13.7 % 13.7 % 13.7 % 13.7 % 14.1 % 14.6 % 15.1 % 15.7 % 15.8 % 15.2 % 15.2 % 15.1 %

Labor ( $ ) / S ale s ( $ ) 35.2 % 33.3 % 33.9 % 28.4 % 28.8 % 32.1 % 31.5 % 25.4 % 36.3 % 27.4 % 20.4 % 16.6 %

B ase C osts ( $ ) / S ale s ( $ ) 76.8 % 59.9 % 61.5 % 66.1 % 67.0 % 75.7 % 75.1 % 72.8 % 53.2 % 45.2 % 50.4 % 41.7 %

G ro ss M arg in ( % ) 51.1 % 53.1 % 52.5 % 58.0 % 57.1 % 53.3 % 53.4 % 59.0 % 48.0 % 57.4 % 64.4 % 68.4 %

O pera tin g M arg in ( % ) -2 5.7 % -6 .9 % -9 .0 % -8 .2 % -9 .9 % -2 2.5 % -2 1.7 % -1 3.8 % -5 .2 % 12.2 % 13.9 % 26.6 %

D uP ont R atio s

Retu rn o n S ale s ( R O S) -1 2.9 % -3 .4 % -4 .5 % -4 .1 % -5 .0 % -1 1 .5 % -1 1 .6 % -7 .9 % -3 .9 % 5.3 % 6.3 % 12.7 %

A sse t T urn s 0.9 8 1.1 0 1.2 5 1.3 9 1.2 9 1.1 0 1.0 6 0.9 6 1.4 1 1.7 2 1.6 8 1.5 7

R etu rn o n A sse ts ( R O A) -1 2.6 % -3 .8 % -5 .6 % -5 .7 % -6 .4 % -1 2.6 % -1 2.3 % -7 .6 % -5 .5 % 9.1 % 10.6 % 20.0 %

F in ancia l L eve ra ge 1.0 0 1.0 0 1.0 0 1.0 0 1.2 2 1.8 7 2.9 0 5.1 0 5.4 6 3.9 5 3.3 1 2.4 2

R etu rn o n E quity ( R O E) -1 2.6 % -3 .8 % -5 .6 % -5 .7 % -7 .8 % -2 3.6 % -3 5.6 % -3 8.7 % -3 0.2 % 36.1 % 35.1 % 48.4 %

M ark e tin g & A dve rtis in g

M ark e tin g ( $ ) / S ale s ( $ ) [% o f S ale s] 11 .7 % 10.8 % 10.0 % 10.4 % 10.3 % 10.5 % 10.6 % 10.1 % 8.3 % 9.5 % 14.1 % 11 .2 %

A dve rtis in g ( $ ) / S ale s ( $ ) [% o f S ale s] 1 3.5 % 12.5 % 11 .7 % 12.0 % 5.3 % 6.4 % 7.0 % 6.8 % 5.1 % 3.9 % 4.2 % 2.0 %

Q ualit y E ngin eerin g

Qualit y ( $ ) / S ale s ( $ ) [% o f S ale s] 4 .9 % 4.5 % 4.2 % 5.5 % 7.3 % 8.3 % 11 .3 % 9.2 % 7.2 % 5.9 % 9.4 % 6.3 %

Q ualit y ( $ ) / U nits P ro duce d $30.4 $ 28.8 $ 23.0 $ 29.9 $ 41.7 $ 47.2 $ 64.3 $ 36.0 $ 66.7 $ 32.1 $ 47.4 $ 23.5

L ean S ix S ig m a

Lean S ix S ig m a ( $ ) / S ale s ( $ ) [% o f S ale s] 6 .0 % 5.6 % 5.2 % 6.1 % 9.4 % 8.9 % 8.0 % 5.5 % 4.5 % 4.2 % 4.0 % 2.0 %

Lean S ix S ig m a ( $ ) / U nits P ro duce d $37.5 $ 35.4 $ 28.3 $ 33.2 $ 53.3 $ 50.3 $ 45.7 $ 21.4 $ 41.7 $ 22.9 $ 20.0 $ 7.4

R ese arc h E xp ense & P ro je ct F undin g

Rese arc h ( $ ) / S ale s ( $ ) [% o f S ale s] 0 .0 % 0.0 % 0.0 % 0.0 % 7.3 % 8.3 % 8.8 % 9.9 % 6.3 % 0.0 % 0.0 % 0.0 %

C ash F lo w A naly sis

C ash C onve rs io n C ycle ( C CC) in D ays 3 1.1 3 0.5 5 4.0 6 8.0 8 8.4 1 02.7 1 09.9 1 36.2 7 9.1 6 3.9 7 1.3 1 07.6

T e rm s to C usto m er 30.0 3 0.0 3 0.0 3 0.0 6 0.0 6 0.0 6 0.0 6 0.0 4 5.0 4 0.0 4 0.0 3 0.0

A ve ra ge C olle ctio n P erio d in D ays 3 0.0 3 0.1 3 9.9 4 0.0 5 5.9 6 4.0 6 3.1 6 4.4 4 7.0 4 4.0 4 4.0 3 4.0

D ays In ve nto ry O uts ta ndin g 1.1 0 .3 1 4.1 2 8.0 3 2.5 3 8.7 4 6.8 7 1.7 3 2.1 1 9.9 2 7.3 7 3.6

D ays P aya ble O uts ta ndin g 0.0 0 .0 0 .0 0 .0 0 .0 0 .0 0 .0 0 .0 0 .0 0 .0 0 .0 0 .0

C ash F lo w fr o m O pera tin g A ctiv itie s ( C FO A) ($ 124,3 31) ($ 16,6 72) ($ 76,9 14) ($ 40,7 85) ($ 94,1 33) ($ 105,3 90) ($ 92,8 68) ($ 136,1 98) $62,7 15 ($ 11 ,4 21) ($ 67,9 94) ($ 75,1 52)

In te re st C ove ra ge [O M $ / In te re st $ ] - - - - - -4 5.1 - 1 5.0 - 6 .8 - 2 .0 7 .7 1 0.8 2 2.6

C ash F lo w C ove ra ge - - - - - -2 .2 - 0 .6 - 0 .6 0 .2 0 .0 - 0 .2 - 0 .2

D istr ib uto r F in ancia ls

Reta il Pric e ( $ ) $700 $700 $700 $700 $678 $656 $633 $611 $ 611 $ 639 $639 $644

D istr ib uto r M arg in ( % ) 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 %

D istr ib uto r M arg in ( $ ) $70.0 $ 70.0 $ 70.0 $ 70.0 $ 67.8 $ 65.6 $ 63.3 $ 61.1 $ 61.1 $ 63.9 $ 63.9 $ 64.4

T o ta l D istr ib uto r M arg in ( $ ) $29,5 40 $31,9 90 $34,3 00 $36,1 90 $37,8 88 $40,0 54 $44,2 07 $50,6 61 $61,4 17 $84,4 61 $106,3 75 $141,1 33

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