Individual Assigment Tianci Fu

Factest Research System Inc.
First Level Analysis: Calculation of RNOA, NOPM and NOAT

2013 Statutory tax rate: 35%+2%=37%
2012 Statutory tax rate: 35%+2.1%=37.1%

1.Calculation of NOPAT:

2.
NOA

Operating assets
Aug-13
Aug-12
Aug-11
Cash & Cash Equivalents
196,627
189,044
181,685
Receivables
73,290
74,251
75,004
Prepaid Expenses
32,589
16,826
-
Deferred Income Taxes
2,803
5,085
4,008
Other Current Assets
-
-
12,473
Prop, Plant and Equip, Net
65,371
76,530
81,620
Intangibles
280,796
289,162
274,575
Other Non-Current Assets
25,996
29,326
28,075
Total operating assets
677,472
680,224
657,440
Operating libilities

Accounts Payable
29,864
27,680
24,603
Income Tax Payable
3,769
-
2,867
Accrued Expenses
40,137
41,274
41,536
Deferred Revenues
29,319
30,495
28,252
Other Current Liabilities
15,164
13,727
12,165
Deferred Income Taxes
2,396
2,593
3,712
Deferred Revenues
22,334
20,646
21,913
Other Non-Current Liabilities
5,435
5,464
7,204
Total operating libilities
148,418
141,879
142,252
NOA
529,054
538,345
515,188
Average NOA
533,700
526,767 NOWC
199,916
194,341
190,550

3.
Compare of RNOA NOPM and NOAT

First level Analysis 2013
2012
NOPAT
197,698
187,730
Average NOA
533,700
526,767
RNOA
37%
36%

NOPAT
197,698
187,730
Sales
858,112
805,793
NOPM
23%
23%

Sales
858,112
805,793
Average NOA
533,700
526,767
NOAT
1.61
1.53

Second
Level
Analysis NOPM

Aug-13
% of Sale
Aug-12
% of Sale Sales
$858,112
100%
$805,793
100% Cost of Goods
306,379
36%
275,537
34% Gross Profit
551,733
64%
530,256
66%
GPM
Operating Expenses
282,314
33%
257,266
32%
OEM
Operating Income
269,419
31%
272,990
34% Taxes
71,721
8%
85,260
11% NOPAT
197,698
23%
187,730
23%

Second Level Analysis of NOAT Aug-13 Aug-12
Sales
$858,112 805,793 Receivables
73,290

74,251
ART(A/R turnover)
12

11

INVT (Inventory turnover)
-

-

Sales
858,112

805,793
Average long term operating assets
27,661

28,701
LTOAT(long-term operating assets Turnover)
31

28

Cost of good sold
306,379

275,537
Average A/P
28,772

26,142
APT(A/P turnover)
11

10.54

sales
$858,112

805,793
Average net operating working capital
197,129

192,446
NOWCT
4.35 4.19

2013
2012
Earnings before interest and taxes
269,419
272,990
Interest expense
-
-
Times interest earned
-
-

2013
2012
Net income
51,532
52,426
Average equity
547021.5
533726
ROE
9%
10%

The Altman bankruptcy model

2013:
1.2*(318034-118253)/690197+1.4*(700,519/690197)+3.3*(269419/690197)+0.6*(4977025.2
/148418)+(858112/690197)
=24.42

2012:
1.2*($299125-$113176)/694143+1.4*(559714/694143)+3.3*(272990/694143)+.6*(5567940
/141879)+(805793/694143)= 27.45

Healthstream inc:

2013:
Statutory tax rate= (5194+898)/ 14842(income before income tax) =41.04%

2012:
Statutory tax rate= (4751+974)/13577 =42.16%
1. Calculate NOPAT

NOPAT

2013

Net operating profit before tax 14,666 Less tax on operating profit

Tax expense
6,424

Tax shield
72.2304
6,352 Net operating profit after tax (NOPAT) 8,314

NOPAT

2012

Net operating profit before tax 13,459
Less tax on operating profit

Tax expense
5,932

Tax shield
49.7488
5,882
Net operating profit after tax (NOPAT) 7,577

NOA

Operating assets
Dec-13
Dec-12
Dec-11
Cash & Cash Equivalents
59,537
41,365
76,904
Receivables
26,706
16,511
17,330
Prepaid Expenses
12,222
6,004
5,213
Deferred Income Taxes
-
2,459
5,080

-
-
-
Prop, Plant and Equip, Net
9,038
7,820
6,087
Intangibles
44,616
38,104
23,104
Other Non-Current Assets
11,816
10,313
7,971
Total operating assets
163,935
122,576
141,689
Operating libilities

Accounts Payable
2,311
1,057
2,585
Accrued Expenses
15,552
10,829
7,104
Deferred Revenues
38,168
23,146
22,759
Other Current Liabilities
15,164
13,727
12,165
Deferred Income Taxes
181
-
-
Deferred Income Tax
6,173
6,474