2005 Financial Analysis Sonic
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tw
SAM tw = Strategic Analysis Model that works
Financial Analysis Module - For Use With 3 Years Data
Print Print Go To Input Go To Input Print Print Go To Input Go To Input Print Print Go To Input Go To Input Print Print Go To Input Go To Input Go To Print Input Go To Print Input ALL Financial Analysis Worksheets TABLE OF CONTENTS
Income Statements Input Sheet
Activity Ratios
Balance Sheets Input Sheet
Leverage Ratios
Year-to-Year Change Income Statement
Profitability Ratios
Common Size Income Statements
Altman's Z-Score Analysis
Liquidity Ratios
Financial Analysis Summary
tw
SAM tw = Strategic Analysis Model that works
TABLE OF CONTENTS
Go To Start
Print Sonic Financial Analysis - Income Statement Data
Enter Name of this Company HERE: Sonic Input the following information from the Company's Income Statements. It is important to input data carefully. Confirm subtotals and Net Income with Company's Income Statements. Any line on the Income Statement can and should be overwritten to match the Company's Income Statement EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Indicate "In Millions", "In Thousands," Etc. Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use thePaste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changesare made, make sure to recopy/paste the charts to your presentation. Prior Period2
Prior Period1
Most Recent Period
Overwrite the title cells with actual years, quarters, etc... In Thousands 2003
Partner Drive-In Sales
2004
2005
$371,518
$449,585
$525,988
66,431
77,518
88,027
Franchise Fees
4,674
4,958
4,311
Other
4,017
4,385
4,740
Total Revenues or Sales
446,640
536,446
623,066
Cost of Goods Sold
291,764
358,859
421,906
Operating Income
154,876
177,587
201,160
35,426
38,270
40,746
Franchise Royalties
Selling Expenses General & Administrative
-
Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)
-
-
119,450
139,317
Depreciation and Amortization
29,223
32,528
35,821
Earnings Before Interest & Taxes (EBIT)
90,227
106,789
124,593
6,216
6,378
5,785
727
675
387
Net Income Before Taxes (NIBT)
83,284
99,736
118,421
Income Tax Expense
31,023
36,721
43,040
$52,261
$63,015
$75,381
58,465,029
59,313,614
59,994,967
Net Interest Expense Other Expense (Income)
Net Income After Taxes (NIAT)
Number of Shares Outstanding Preferred Stock Dividends
-
Net Earnings per Share (EPS)
-
$0.00
$500,000 $450,000
$80,000
$75,381
$70,000
$536,446
$63,015 $60,000
$446,640
$52,261 $50,000
$400,000 $350,000
$40,000
$300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $2003
Discussion
$0.00
Net Income After Taxes $623,066
$600,000 $550,000
-
$0.00
Revenues $650,000
160,414
2004
2005
We currently anticipate that$30,000 we will retain all of our earnings to support our operations and$20,000 develop our business. $10,000 Therefore, we do not pay any cash dividends on our $outstanding common stock. 2003 Future cash dividends, if any, will be at the discretion of our Discussion Board of Directors and will depend upon, among other things, future operations and earnings, capital requirements,general financial conditions,contractual restrictions, and other factors that our Board may consider relevant. (2005 Annual Report)
2004
2005
Go To Start Print Sonic
Financial Analysis - Balance Sheet Data Input the following information from the Company's Balance Sheets. It is important to input data carefully. Confirm subtotals and totals with Company's Financial Statements. Any line on the Balance Sheets can and should be overwritten to match the Company's Balance Sheet EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes are made, make sure to recopy/paste the charts to your presentation. Prior Period2
Prior Period1
Most Recent Period
Overwrite the title cells with actual years, quarters, etc... In Thousands 2003
2004
2005
Assets Cash & Cash Equivalents Accounts Receivable Inventory Prepaid Expenses & Deposits
$13,210
$7,993
$6,431
16,990
18,087
18,801
2,713
3,551
2,246 2,153
1,852
Total Current Assets
37,312
34,583
Land and Buildings Furniture and Equipment
3,760
3,100
Other Current Assets
4,262 1,995 35,249
6,823
6,107
5,033
345,551
376,315
422,825
Other Fixed Assets
96,433
101,628
100,209
Total Fixed Assets
448,807
484,050
528,067
486,119
518,633
563,316
14,117
Total Assets Liabilities and Stockholder's Equity Liabilities Accounts Payable
6,939
9,783
Accrued Liabilities
29,614
23,733
Current Maturities of LT Debt
1,574
Related Party Notes Payable
Deferred Income Taxes Total Liabilities
6,527
2,867
-
LT Debt, net of current portion
26,367
6,006
2,060
Other Current Liabilities Total Current Liabilities
3,157
6,731
15,174
40,187
49,120
65,342
173,805
124,925
102,271
6,729
9,826
11,164
220,721
183,871
178,777
Stockholder's Equity Common Stock
738
Retained Earnings
746
288,387
Additional Paid-in Capital Other Equity Total Stockholder's Equity
Total Liabilities & Stockholder's Equity
758
351,402
426,783
95,300
105,012
121,982
(119,027)
(122,398)
(164,984)
265,398
334,762
384,539
$486,119
$518,633
$563,316
$(14,537)
$(30,093)
Working Capi tal (Current Assets - Current Liabilities)
$(2,875)
Discussion
Check Assets = Liabilities + Equity -->
OK
OK
OK
OK
-
-
-
-
Go To Start
Print
Sonic Financial Analysis Income Statement - Year-to-Year Percentage Changes
Percentage Increase/(Decrease) 2003 to 2004 Partner Drive-In Sales
21.01%
Franchise Royalties
Percentage Increase/(Decrease) 2004 to 2005 16.99%
Three-Yr Average Percentage Increase/(Decrease) 2003-2005
Increase/(Decreas Increase/(Decreas Increase/(Decreas e) to 2003 e) 2003 to 2004 e) 2004 to 2005
19.00%
371,518.00
78,067.00
76,403.00
16.69%
13.56%
15.12%
66,431.00
11,087.00
10,509.00
Franchise Fees
6.08%
(13.05%)
(3.49%)
4,674.00
284.00
(647.00)
Other
9.16%
8.10%
8.63%
4,017.00
368.00
355.00
Total Revenues or Sales
20.11%
16.15%
18.13%
446,640.00
89,806.00
86,620.00
Cost of Goods Sold
23.00%
17.57%
20.28%
291,764.00
67,095.00
63,047.00
Operating Income
14.66%
13.27%
13.97%
154,876.00
22,711.00
23,573.00
Selling Expenses
8.03%
6.47%
7.25%
35,426.00
2,844.00
2,476.00
#DIV/0!
#DIV/0!
#DIV/0!
General & Administrative
-
-
-
Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)
16.63%
15.14%
15.89%
119,450.00
19,867.00
21,097.00
Depreciation and Amortization
11.31%
10.12%
10.72%
29,223.00
3,305.00
3,293.00
Earnings Before Interest & Taxes (EBIT)
18.36%
16.67%
17.51%
90,227.00
16,562.00
17,804.00
2.61%
(9.30%)
(3.35%)
6,216.00
162.00
(593.00)
Other Expense (Income)
(7.15%)
(42.67%)
(24.91%)
727.00
(52.00)
(288.00)
Net Income Before Taxes (NIBT)
19.75%
18.73%
19.24%
83,284.00
16,452.00
18,685.00
Income Tax Expense
18.37%
17.21%
17.79%
31,023.00
5,698.00
6,319.00
Net Income After Taxes (NIAT)
20.58%
19.62%
20.10%
52,261.00
10,754.00
12,366.00
Net Interest Expense
Discussion
Go To Start
Print
Sonic Financial Analysis Common Size Income Statements Line Items Reflected as a Percentage of Total Revenues or Sales
2003
2004
2005
Partner Drive-In Sales
83.18%
83.81%
84.42%
Franchise Royalties
14.87%
14.45%
14.13%
Franchise Fees
1.05%
0.92%
0.69%
Other
0.90%
0.82%
0.76%
100.00%
100.00%
100.00%
Cost of Goods Sold
65.32%
66.90%
67.71%
Operating Income
34.68%
33.10%
32.29%
Selling Expenses
7.93%
7.13%
6.54%
General & Administrative
0.00%
0.00%
0.00%
26.74%
25.97%
25.75%
6.54%
6.06%
5.75%
20.20%
19.91%
20.00%
Net Interest Expense
1.39%
1.19%
0.93%
Other Expense (Income)
0.16%
0.13%
0.06%
18.65%
18.59%
19.01%
6.95%
6.85%
6.91%
11.70%
11.75%
12.10%
Total Revenues or Sales
Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) Depreciation and Amortization
Earnings Before Interest & Taxes (EBIT)
Net Income Before Taxes (NIBT) Income Tax Expense Net Income After Taxes (NIAT)
Discussion
Go To Start
Print
Sonic Financial Analysis Liquidity Ratios & Analysis
Current Ratio Total Current Assets
÷ Total Current Liabilities
=
2003
2004
2005
37,312
34,583
35,249
40,187
49,120
65,342
0.93
0.70
0.54
Current Ratio
1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 2003
2004
2005
Discussion
0.90 0.80
Quick Ratio Total Current Assets Inventories
÷ Total Current Liabilities
2003
2004
2005
0.70 0.60 0.50
34,599
31,032
31,489
40,187
49,120
65,342
0.86
0.63
0.48
0.40 0.30 0.20 0.10 -
=
Quick Ratio
2003
2004
2005
2003
2004
2005
Discussion
Inventory to Net Working Capital
(0.00)
2003
2004
2005
(0.10) (0.20) (0.30)
Inventory
÷ Current Assets Current Liabilities =
Inventory to Net Working Capital
Discussion
2,713
3,551
3,760
(0.40) (0.50) (0.60) (0.70)
(2,875)
(14,537)
(30,093)
(0.94)
(0.24)
(0.12)
(0.80) (0.90) (1.00)
Go To Start
Print
Sonic Financial Analysis Activity Ratios & Analysis
Inventory Turnover
=
2003
2004
150.00
2005
125.00
446,640
536,446
623,066
Inventory
2,713
3,551
3,760
Inventory Turnover
164.63
151.07
165.71
Sales
÷
175.00
100.00 75.00 50.00 25.00 2003
2004
2005
2003
2004
2005
2004
2005
Discussion
Total-Asset Turnover
÷ =
1.20
2003
2004
1.00
2005
0.80
Sales
446,640
536,446
623,066
Total Assets
486,119
518,633
563,316
0.92
1.03
1.11
0.60 0.40 0.20 -
Total Asset Turnover
Discussion
Average Collection Period
15.00
2003
2004
12.50
2005
10.00
A/R
÷ Average Daily Sales
=
Average Collection Period
Discussion
16,990
18,087
18,801
1,223.7
1,469.7
1,707.0
13.88
12.31
11.01
7.50 5.00 2.50 2003
Go To Start
Print
Sonic Financial Analysis Leverage Ratios & Analysis
Debt-to-Assets Ratio
÷ =
0.50
2003
2004
2005
0.40
Total Debt
220,721
183,871
178,777
Total Assets
486,119
518,633
563,316
0.45
0.35
0.32
Debt-to-Assets Ratio
0.30 0.20 0.10 2003
2004
2005
Discussion
Debt-to-Equity Ratio
0.90 0.80
2003
2004
2005
0.70 0.60 0.50
÷ =
Total Debt
220,721
183,871
178,777
Total Equity
265,398
334,762
384,539
0.83
0.55
0.46
0.40 0.30 0.20 0.10 -
Debt-to-Equity Ratio
2003
2004
2005
2004
2005
Discussion
Times Interest Earned
=
2004
2005
90,227
106,789
124,593
Interest Expense
6,216
6,378
5,785
Times Interest Earned
14.52
16.74
21.54
EBIT
÷
2003
Discussion
22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50 2003
Go To Start
Print
Sonic Financial Analysis Profitability Ratios & Analysis 0.35
Gross Profit Margin
2003
2004
0.30
2005
0.25 0.20
Sales - COGS
÷ Sales =
154,876
177,587
201,160
446,640
536,446
623,066
0.35
0.33
0.32
Gross Profit Margin
0.15 0.10 0.05 2003
2004
2005
Discussion
0.14
Net Profit Margin
0.12
2003
2004
2005
0.10 0.08
NIAT
52,261
63,015
75,381
÷ Sales
446,640
536,446
623,066
0.12
0.12
0.12
0.06 0.04 0.02 -
=
Net Profit Margin
2003
2004
2005
2003
2004
2005
2003
2004
2005
2003
2004
2005
Discussion
0.25
Return on Sales
2003
2004
0.20
2005
0.15
EBIT
90,227
106,789
124,593
0.10
÷ Sales
446,640
536,446
623,066
0.05
0.20
0.20
0.20
=
Return on Sales
-
Discussion
Return on Equity NIAT
÷ Stockholder's Equity =
2003
2004
2005
52,261
63,015
75,381
265,398
334,762
384,539
0.20
0.19
0.20
Return on Equity
0.20 0.18 0.15 0.13 0.10 0.08 0.05 0.03 -
Discussion
0.15
Return on Assets NIAT
÷ Total Assets =
Return on Assets
Discussion
2003
2004
0.13
2005
0.10
52,261
63,015
75,381
486,119
518,633
563,316
0.11
0.12
0.13
0.08 0.05 0.03 -
Go To StartPrint Sonic
Financial Analysis Altman's Z-Score (for manufacturers) and Z 2-Score (for non-manufacturers) The Ratios:
Results: 2003
X1 =
Net Working Capital / Total Assets
X2 =
Retained Earnings / Total Assets
X3 =
EBIT / Total Assets
X4 =
Market Value of Equity / Book Value of Debt
X5 =
Sales / Total Assets
X4a =
Net Worth / Total Debt
2004
2005
X1 =
(0.01)
(0.03)
(0.05)
X2 =
0.59
0.68
0.76
X3 =
0.25
0.27
0.28
X4 =
1.20
1.82
2.15
X5 =
0.92
1.03
X4a =
1.20
1.82
1.11 2.15
Note: Because in most instances the market value of equity and the book value of debt are not given, SAM TW instead uses Total Equity and Total Debt, respectively. In addition, it assumes that Total Equity equals Net Worth, so that, in fact, the
ratios X4 and X4a are computed to be identical. The resulting errors from these simplifying assumptions are negligible.
The Formulae and Results: For manufacturers:
Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5 =
3.27
3.93
Safe For non-manufacturers:
Z2 = 6.5X1 + 3.26X2 + 6.72X3 + 1.05X 4a
4.81 Safe
Safe
4.33 Safe
=
5.74 Safe
6.29 Safe
What does it mean? Criteria
Safe Region
Gray Region
Bankrupt Region
Z (for Manufacturers)
> 2.99
1.81 -- 2.99
< 1.81
Z2 (for Non-Manufacturers)
> 2.59
1.11 -- 2.59
<1.11
Go To Start Print Sonic
Financial Analysis Summary of Financial Analysis There are five types of general conclusions that can be drawn from this type of financial analysis. Please check the one that you feel is most representative of this company's performance. Be prepared to support the conclusion chosen. Choose one Conclusion Based Upon the Results Presented in the Financial Analysis
The company has been well managed, has performed well, and is in strong financial c ondition.
1 all indicators chosen should show strong performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N." 2 all indicators chosen, except one, should be positive to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
As above, except for one major aspect that is problematic.
2
3 a roughly equal number of indicators chosen should show good and poor performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
●
The results are inconclusive, mixed.
4 all indicators chosen, except one, should show poor performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
As below, except for one major aspec t that is good.
5 all indicators chosen should show poor performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
The company has not been well managed, has not been performing well, and in fact is in serious trouble.
In the table below, indicate up to seven financial indicators and their values as of the most recent year that support your conclusion. All indicators chosen should somehow support the chosen conclusion. If you find that, in fact, they support a different conclusion, then click on that one. Based upon the conclusion chosen above, all indicators chosen, except one, should be positive to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
Indicator
Indication
General Discussion / Results of Analysis
Comments/Discussion
P/N
SAM tw = Strategic Analysis Model that works
Financial Analysis Module - For Use With 3 Years Data
Print Print Go To Input Go To Input Print Print Go To Input Go To Input Print Print Go To Input Go To Input Print Print Go To Input Go To Input Go To Print Input Go To Print Input ALL Financial Analysis Worksheets TABLE OF CONTENTS
Income Statements Input Sheet
Activity Ratios
Balance Sheets Input Sheet
Leverage Ratios
Year-to-Year Change Income Statement
Profitability Ratios
Common Size Income Statements
Altman's Z-Score Analysis
Liquidity Ratios
Financial Analysis Summary
tw
SAM tw = Strategic Analysis Model that works
TABLE OF CONTENTS
Go To Start
Print Sonic Financial Analysis - Income Statement Data
Enter Name of this Company HERE: Sonic Input the following information from the Company's Income Statements. It is important to input data carefully. Confirm subtotals and Net Income with Company's Income Statements. Any line on the Income Statement can and should be overwritten to match the Company's Income Statement EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Indicate "In Millions", "In Thousands," Etc. Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use thePaste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changesare made, make sure to recopy/paste the charts to your presentation. Prior Period2
Prior Period1
Most Recent Period
Overwrite the title cells with actual years, quarters, etc... In Thousands 2003
Partner Drive-In Sales
2004
2005
$371,518
$449,585
$525,988
66,431
77,518
88,027
Franchise Fees
4,674
4,958
4,311
Other
4,017
4,385
4,740
Total Revenues or Sales
446,640
536,446
623,066
Cost of Goods Sold
291,764
358,859
421,906
Operating Income
154,876
177,587
201,160
35,426
38,270
40,746
Franchise Royalties
Selling Expenses General & Administrative
-
Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)
-
-
119,450
139,317
Depreciation and Amortization
29,223
32,528
35,821
Earnings Before Interest & Taxes (EBIT)
90,227
106,789
124,593
6,216
6,378
5,785
727
675
387
Net Income Before Taxes (NIBT)
83,284
99,736
118,421
Income Tax Expense
31,023
36,721
43,040
$52,261
$63,015
$75,381
58,465,029
59,313,614
59,994,967
Net Interest Expense Other Expense (Income)
Net Income After Taxes (NIAT)
Number of Shares Outstanding Preferred Stock Dividends
-
Net Earnings per Share (EPS)
-
$0.00
$500,000 $450,000
$80,000
$75,381
$70,000
$536,446
$63,015 $60,000
$446,640
$52,261 $50,000
$400,000 $350,000
$40,000
$300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $2003
Discussion
$0.00
Net Income After Taxes $623,066
$600,000 $550,000
-
$0.00
Revenues $650,000
160,414
2004
2005
We currently anticipate that$30,000 we will retain all of our earnings to support our operations and$20,000 develop our business. $10,000 Therefore, we do not pay any cash dividends on our $outstanding common stock. 2003 Future cash dividends, if any, will be at the discretion of our Discussion Board of Directors and will depend upon, among other things, future operations and earnings, capital requirements,general financial conditions,contractual restrictions, and other factors that our Board may consider relevant. (2005 Annual Report)
2004
2005
Go To Start Print Sonic
Financial Analysis - Balance Sheet Data Input the following information from the Company's Balance Sheets. It is important to input data carefully. Confirm subtotals and totals with Company's Financial Statements. Any line on the Balance Sheets can and should be overwritten to match the Company's Balance Sheet EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes are made, make sure to recopy/paste the charts to your presentation. Prior Period2
Prior Period1
Most Recent Period
Overwrite the title cells with actual years, quarters, etc... In Thousands 2003
2004
2005
Assets Cash & Cash Equivalents Accounts Receivable Inventory Prepaid Expenses & Deposits
$13,210
$7,993
$6,431
16,990
18,087
18,801
2,713
3,551
2,246 2,153
1,852
Total Current Assets
37,312
34,583
Land and Buildings Furniture and Equipment
3,760
3,100
Other Current Assets
4,262 1,995 35,249
6,823
6,107
5,033
345,551
376,315
422,825
Other Fixed Assets
96,433
101,628
100,209
Total Fixed Assets
448,807
484,050
528,067
486,119
518,633
563,316
14,117
Total Assets Liabilities and Stockholder's Equity Liabilities Accounts Payable
6,939
9,783
Accrued Liabilities
29,614
23,733
Current Maturities of LT Debt
1,574
Related Party Notes Payable
Deferred Income Taxes Total Liabilities
6,527
2,867
-
LT Debt, net of current portion
26,367
6,006
2,060
Other Current Liabilities Total Current Liabilities
3,157
6,731
15,174
40,187
49,120
65,342
173,805
124,925
102,271
6,729
9,826
11,164
220,721
183,871
178,777
Stockholder's Equity Common Stock
738
Retained Earnings
746
288,387
Additional Paid-in Capital Other Equity Total Stockholder's Equity
Total Liabilities & Stockholder's Equity
758
351,402
426,783
95,300
105,012
121,982
(119,027)
(122,398)
(164,984)
265,398
334,762
384,539
$486,119
$518,633
$563,316
$(14,537)
$(30,093)
Working Capi tal (Current Assets - Current Liabilities)
$(2,875)
Discussion
Check Assets = Liabilities + Equity -->
OK
OK
OK
OK
-
-
-
-
Go To Start
Sonic Financial Analysis Income Statement - Year-to-Year Percentage Changes
Percentage Increase/(Decrease) 2003 to 2004 Partner Drive-In Sales
21.01%
Franchise Royalties
Percentage Increase/(Decrease) 2004 to 2005 16.99%
Three-Yr Average Percentage Increase/(Decrease) 2003-2005
Increase/(Decreas Increase/(Decreas Increase/(Decreas e) to 2003 e) 2003 to 2004 e) 2004 to 2005
19.00%
371,518.00
78,067.00
76,403.00
16.69%
13.56%
15.12%
66,431.00
11,087.00
10,509.00
Franchise Fees
6.08%
(13.05%)
(3.49%)
4,674.00
284.00
(647.00)
Other
9.16%
8.10%
8.63%
4,017.00
368.00
355.00
Total Revenues or Sales
20.11%
16.15%
18.13%
446,640.00
89,806.00
86,620.00
Cost of Goods Sold
23.00%
17.57%
20.28%
291,764.00
67,095.00
63,047.00
Operating Income
14.66%
13.27%
13.97%
154,876.00
22,711.00
23,573.00
Selling Expenses
8.03%
6.47%
7.25%
35,426.00
2,844.00
2,476.00
#DIV/0!
#DIV/0!
#DIV/0!
General & Administrative
-
-
-
Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)
16.63%
15.14%
15.89%
119,450.00
19,867.00
21,097.00
Depreciation and Amortization
11.31%
10.12%
10.72%
29,223.00
3,305.00
3,293.00
Earnings Before Interest & Taxes (EBIT)
18.36%
16.67%
17.51%
90,227.00
16,562.00
17,804.00
2.61%
(9.30%)
(3.35%)
6,216.00
162.00
(593.00)
Other Expense (Income)
(7.15%)
(42.67%)
(24.91%)
727.00
(52.00)
(288.00)
Net Income Before Taxes (NIBT)
19.75%
18.73%
19.24%
83,284.00
16,452.00
18,685.00
Income Tax Expense
18.37%
17.21%
17.79%
31,023.00
5,698.00
6,319.00
Net Income After Taxes (NIAT)
20.58%
19.62%
20.10%
52,261.00
10,754.00
12,366.00
Net Interest Expense
Discussion
Go To Start
Sonic Financial Analysis Common Size Income Statements Line Items Reflected as a Percentage of Total Revenues or Sales
2003
2004
2005
Partner Drive-In Sales
83.18%
83.81%
84.42%
Franchise Royalties
14.87%
14.45%
14.13%
Franchise Fees
1.05%
0.92%
0.69%
Other
0.90%
0.82%
0.76%
100.00%
100.00%
100.00%
Cost of Goods Sold
65.32%
66.90%
67.71%
Operating Income
34.68%
33.10%
32.29%
Selling Expenses
7.93%
7.13%
6.54%
General & Administrative
0.00%
0.00%
0.00%
26.74%
25.97%
25.75%
6.54%
6.06%
5.75%
20.20%
19.91%
20.00%
Net Interest Expense
1.39%
1.19%
0.93%
Other Expense (Income)
0.16%
0.13%
0.06%
18.65%
18.59%
19.01%
6.95%
6.85%
6.91%
11.70%
11.75%
12.10%
Total Revenues or Sales
Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) Depreciation and Amortization
Earnings Before Interest & Taxes (EBIT)
Net Income Before Taxes (NIBT) Income Tax Expense Net Income After Taxes (NIAT)
Discussion
Go To Start
Sonic Financial Analysis Liquidity Ratios & Analysis
Current Ratio Total Current Assets
÷ Total Current Liabilities
=
2003
2004
2005
37,312
34,583
35,249
40,187
49,120
65,342
0.93
0.70
0.54
Current Ratio
1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 2003
2004
2005
Discussion
0.90 0.80
Quick Ratio Total Current Assets Inventories
÷ Total Current Liabilities
2003
2004
2005
0.70 0.60 0.50
34,599
31,032
31,489
40,187
49,120
65,342
0.86
0.63
0.48
0.40 0.30 0.20 0.10 -
=
Quick Ratio
2003
2004
2005
2003
2004
2005
Discussion
Inventory to Net Working Capital
(0.00)
2003
2004
2005
(0.10) (0.20) (0.30)
Inventory
÷ Current Assets Current Liabilities =
Inventory to Net Working Capital
Discussion
2,713
3,551
3,760
(0.40) (0.50) (0.60) (0.70)
(2,875)
(14,537)
(30,093)
(0.94)
(0.24)
(0.12)
(0.80) (0.90) (1.00)
Go To Start
Sonic Financial Analysis Activity Ratios & Analysis
Inventory Turnover
=
2003
2004
150.00
2005
125.00
446,640
536,446
623,066
Inventory
2,713
3,551
3,760
Inventory Turnover
164.63
151.07
165.71
Sales
÷
175.00
100.00 75.00 50.00 25.00 2003
2004
2005
2003
2004
2005
2004
2005
Discussion
Total-Asset Turnover
÷ =
1.20
2003
2004
1.00
2005
0.80
Sales
446,640
536,446
623,066
Total Assets
486,119
518,633
563,316
0.92
1.03
1.11
0.60 0.40 0.20 -
Total Asset Turnover
Discussion
Average Collection Period
15.00
2003
2004
12.50
2005
10.00
A/R
÷ Average Daily Sales
=
Average Collection Period
Discussion
16,990
18,087
18,801
1,223.7
1,469.7
1,707.0
13.88
12.31
11.01
7.50 5.00 2.50 2003
Go To Start
Sonic Financial Analysis Leverage Ratios & Analysis
Debt-to-Assets Ratio
÷ =
0.50
2003
2004
2005
0.40
Total Debt
220,721
183,871
178,777
Total Assets
486,119
518,633
563,316
0.45
0.35
0.32
Debt-to-Assets Ratio
0.30 0.20 0.10 2003
2004
2005
Discussion
Debt-to-Equity Ratio
0.90 0.80
2003
2004
2005
0.70 0.60 0.50
÷ =
Total Debt
220,721
183,871
178,777
Total Equity
265,398
334,762
384,539
0.83
0.55
0.46
0.40 0.30 0.20 0.10 -
Debt-to-Equity Ratio
2003
2004
2005
2004
2005
Discussion
Times Interest Earned
=
2004
2005
90,227
106,789
124,593
Interest Expense
6,216
6,378
5,785
Times Interest Earned
14.52
16.74
21.54
EBIT
÷
2003
Discussion
22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50 2003
Go To Start
Sonic Financial Analysis Profitability Ratios & Analysis 0.35
Gross Profit Margin
2003
2004
0.30
2005
0.25 0.20
Sales - COGS
÷ Sales =
154,876
177,587
201,160
446,640
536,446
623,066
0.35
0.33
0.32
Gross Profit Margin
0.15 0.10 0.05 2003
2004
2005
Discussion
0.14
Net Profit Margin
0.12
2003
2004
2005
0.10 0.08
NIAT
52,261
63,015
75,381
÷ Sales
446,640
536,446
623,066
0.12
0.12
0.12
0.06 0.04 0.02 -
=
Net Profit Margin
2003
2004
2005
2003
2004
2005
2003
2004
2005
2003
2004
2005
Discussion
0.25
Return on Sales
2003
2004
0.20
2005
0.15
EBIT
90,227
106,789
124,593
0.10
÷ Sales
446,640
536,446
623,066
0.05
0.20
0.20
0.20
=
Return on Sales
-
Discussion
Return on Equity NIAT
÷ Stockholder's Equity =
2003
2004
2005
52,261
63,015
75,381
265,398
334,762
384,539
0.20
0.19
0.20
Return on Equity
0.20 0.18 0.15 0.13 0.10 0.08 0.05 0.03 -
Discussion
0.15
Return on Assets NIAT
÷ Total Assets =
Return on Assets
Discussion
2003
2004
0.13
2005
0.10
52,261
63,015
75,381
486,119
518,633
563,316
0.11
0.12
0.13
0.08 0.05 0.03 -
Go To StartPrint Sonic
Financial Analysis Altman's Z-Score (for manufacturers) and Z 2-Score (for non-manufacturers) The Ratios:
Results: 2003
X1 =
Net Working Capital / Total Assets
X2 =
Retained Earnings / Total Assets
X3 =
EBIT / Total Assets
X4 =
Market Value of Equity / Book Value of Debt
X5 =
Sales / Total Assets
X4a =
Net Worth / Total Debt
2004
2005
X1 =
(0.01)
(0.03)
(0.05)
X2 =
0.59
0.68
0.76
X3 =
0.25
0.27
0.28
X4 =
1.20
1.82
2.15
X5 =
0.92
1.03
X4a =
1.20
1.82
1.11 2.15
Note: Because in most instances the market value of equity and the book value of debt are not given, SAM TW instead uses Total Equity and Total Debt, respectively. In addition, it assumes that Total Equity equals Net Worth, so that, in fact, the
ratios X4 and X4a are computed to be identical. The resulting errors from these simplifying assumptions are negligible.
The Formulae and Results: For manufacturers:
Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5 =
3.27
3.93
Safe For non-manufacturers:
Z2 = 6.5X1 + 3.26X2 + 6.72X3 + 1.05X 4a
4.81 Safe
Safe
4.33 Safe
=
5.74 Safe
6.29 Safe
What does it mean? Criteria
Safe Region
Gray Region
Bankrupt Region
Z (for Manufacturers)
> 2.99
1.81 -- 2.99
< 1.81
Z2 (for Non-Manufacturers)
> 2.59
1.11 -- 2.59
<1.11
Go To Start Print Sonic
Financial Analysis Summary of Financial Analysis There are five types of general conclusions that can be drawn from this type of financial analysis. Please check the one that you feel is most representative of this company's performance. Be prepared to support the conclusion chosen. Choose one Conclusion Based Upon the Results Presented in the Financial Analysis
The company has been well managed, has performed well, and is in strong financial c ondition.
1 all indicators chosen should show strong performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N." 2 all indicators chosen, except one, should be positive to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
As above, except for one major aspect that is problematic.
2
3 a roughly equal number of indicators chosen should show good and poor performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
●
The results are inconclusive, mixed.
4 all indicators chosen, except one, should show poor performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
As below, except for one major aspec t that is good.
5 all indicators chosen should show poor performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
The company has not been well managed, has not been performing well, and in fact is in serious trouble.
In the table below, indicate up to seven financial indicators and their values as of the most recent year that support your conclusion. All indicators chosen should somehow support the chosen conclusion. If you find that, in fact, they support a different conclusion, then click on that one. Based upon the conclusion chosen above, all indicators chosen, except one, should be positive to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
Indicator
Indication
General Discussion / Results of Analysis
Comments/Discussion
P/N
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