INVESTOR ANALYSIS

Earnings Before Interest and Tax

Degree of Financial Leverage ¼
Earnings Before Tax

Earnings Before Interest, Tax,

Noncontrolling Interest,
Equity Income, and Nonrecurring Items
All-Inclusive Degree of Financial Leverage ¼
Earnings Before Tax, Noncontrolling Interest,
Equity Income, and Nonrecurring Items

Net Income  Preferred Dividends

Earnings per Share ¼
Weighted Average Number of
Common Shares Outstanding

Operating Cash Flow  Preferred Dividends

Operating Cash Flow per Share ¼
Diluted Weighted Average Common Shares Outstanding

Market Price per Share

Price/Earnings Ratio ¼
Diluted Earnings per Share, Before Nonrecurring Items

Net Income Before Nonrecurring Items  All Dividends

Percentage of Earnings Retained ¼
Net Income Before Nonrecurring Items

Dividends per Common Share

Dividend Payout ¼
Diluted Earnings per Share Before Nonrecurring Items

Dividends per Common Share

Dividend Yield ¼
Market Price per Common Share

Total Shareholders’ Equity  Preferred Stock Equity

Book Value per Share ¼
Number of Common Shares Outstanding

Operating Cash Flow

Operating Cash Flow/Cash Dividends ¼
Cash Dividends
Net Income Before Net Income Before
Nonrecurring Items Not  Nonrecurring Items
Including Option Expense Including Option Expense
Materiality of Options ¼
Net Income Before Nonrecurring Items
Not Including Option Expense

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BANKS
Average Earning Assets
Earning Assets to Total Assets ¼
Average Total Assets

Interest Margin
Interest Margin to Average Earning Assets ¼
Average Earning Assets

Pretax Income þ Provision for Loan Losses

Loan Loss Coverage Ratio ¼
Net Charge-Offs

Average Equity
Equity Capital to Total Assets ¼
Average Total Assets

Average Deposits
Deposits Times Capital ¼
Average Shareholders’ Equity

Average Total Loans

Loans to Deposit ¼
Average Deposits

REGULATED UTILITIES
Operating Expense
Operating Ratio ¼
Operating Revenue

Funded Debt
Funded Debt to Operating Property ¼
Operating Property

Net Income
Percent Earned on Operating Property ¼
Operating Property

Operating Revenue
Operating Revenue to Operating Property ¼
Operating Property

TRANSPORTATION
Operating Expense
Operating Ratio ¼
Operating Revenue

Long-Term Debt Less Current Maturities

Long-Term Debt to Operating Property ¼
Operating Property

Operating Revenue
Operating Revenue to Operating Property ¼
Operating Property

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 LIQUIDITY
Gross Receivables
Days’ Sales in Receivables ¼
Net Sales=365

Net Sales
Accounts Receivable Turnover ¼
Average Gross Receivables

Average Gross Receivables

Accounts Receivable Turnover in Days ¼
Net Sales=365

Ending Inventory
Days’ Sales in Inventory ¼
Cost of Goods Sold=365

Cost of Goods Sold

Inventory Turnover ¼
Average Inventory

Average Inventory
Inventory Turnover in Days ¼
Cost of Goods Sold=365

Accounts Receivable Inventory Turnover

Operating Cycle ¼ þ
Turnover in Days in Days

Working Capital ¼ Current Assets  Current Liabilities

Current Assets
Current Ratio ¼
Current Liabilities
Cash Equivalents þ Marketable Securities þ Net Receivables
Acid-Test Ratio ¼
Current Liabilities
Cash Equivalents þ Marketable Securities
Cash Ratio ¼
Current Liabilities
Sales
Sales to Working Capital ¼
Average Working Capital

Operating Cash Flow/

Operating Cash Flow
Current Maturities of Long-Term Debt ¼
Current Maturities of Long-Term Debt
and Current Notes Payable
and Current Notes Payable

LONG-TERM DEBT-PAYING ABILITY

Recurring Earnings, Excluding Interest Expense, Tax
Expense, Equity Earnings, and Noncontrolling Interest
Times Interest Earned ¼
Interest Expense, Including Capitalized Interest

Recurring Earnings, Excluding Interest Expense, Tax

Expense, Equity Earnings, and Noncontrolling Interest
þ Interest Portion of Rentals
Fixed Charge Coverage ¼
Interest Expense, Including Capitalized Interest þ
Interest Portion of Rentals

Total Liabilities
Debt Ratio ¼
Total Assets

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 Total Liabilities
Debt/Equity Ratio ¼
Shareholders’ Equity

Total Liabilities
Debt to Tangible Net Worth Ratio ¼
Shareholders’ Equity  Intangible Assets

Operating Cash Flow

Operating Cash Flow/Total Debt ¼
Total Debt

PROFITABILITY
Net Income Before Noncontrolling Interest,
Equity Income and Nonrecurring Items
Net Profit Margin ¼
Net Sales
Net Sales
Total Asset Turnover ¼
Average Total Assets

Net Income Before Noncontrolling Interest

and Nonrecurring Items
Return on Assets ¼
Average Total Assets

Operating Income
Operating Income Margin ¼
Net Sales
Net Sales
Operating Asset Turnover ¼
Average Operating Assets

Operating Income
Return on Operating Assets ¼
Average Operating Assets

Operating Operating
DuPont Return on Operating Assets ¼ Income 3 Asset
Margin Turnover

Net Sales
Sales to Fixed Assets ¼
Average Net Fixed Assets
ðExclude Construction in ProgressÞ

Net Income Before Noncontrolling Interest and

Nonrecurring Items þ ½ðInterest ExpenseÞ3ð1  Tax RateÞ
Return on Investment ¼
Average (Long-Term Liabilities + Equity)

Net Income Before Nonrecurring Items

Dividends on Redeemable Preferred Stock
Return on Total Equity ¼
Average Total Equity

Net Income Before Nonrecurring Items  Preferred Dividends

Return on Common Equity ¼
Average Common Equity

Gross Profit
Gross Profit Margin ¼
Net Sales

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