Benchmarking Financial Performance and Key Ratios

Kelly DiGiacomo, Steel Founders’ Society of America

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Top Steel Foundry Trends To Notice During the Presentation   Net worth increase   Liquidity increase   Quicker trade receivables turnover   Quicker inventory turnover   Quicker trade payables turnover   Officers’, directors’, & owners’ compensation

trends

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Data Presentation Format   Steel foundries and other similar industries

  Including:   Machine shops   Fabricated structural metal manufacturing   Iron and steel forging   Iron foundries

  Median number of all reported companies used (companies with $0-$250 million in assets)

  Number of companies included in data survey varies by industry

  Steel foundries only, presented comparatively by company size (total assets or total sales)

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Liquidity Ratios

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Current Ratio

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Quick Ratio

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Trade Receivables Turnover

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Days’ Receivable

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Inventory Turnover

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Days’ Inventory

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Trade Payables Turnover

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Days’ Payable

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Working Capital Turnover

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Leverage Ratios

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Debt / Worth

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Fixed / Worth

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Operating Ratios

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Return on Net Worth

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Return on Assets

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Sales / Total Assets

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Expense to Sales Ratio

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Officers’, Directors’, & Owners’ Comp / Sales

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Ratio Variances Within Different Size Steel Foundries

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2008 Inventory & Trade Payables Turnover – Steel Foundries

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2008 Profit Before Taxes / Tangible Net Worth – Steel Foundries

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2008 Income/Expense Items As A Percent of Net Sales – Steel Foundries

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Financial Statement Break-Downs Steel Foundries

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2004-2008 Assets Allocation – All Steel Foundries

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2004-2008 Liabilities & Net Worth Allocation – All Steel Foundries

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2008 Asset Allocation - Steel Foundries

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2008 Liability and Net Worth Allocation - Steel Foundries

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Quick Reference - Ratios   Current Ratio – Total Current Assets / Total Current Liabilities   Quick Ratio – Cash & Equivalents & Trade Receivables (Net) / Total

Current Liabilities   Trade Receivables Turnover – Net Sales / Trade Receivables (Net)   Days’ Receivable – 365 / Trade Receivables Turnover   Inventory Turnover – Cost of Sales / Inventory   Days’ Inventory – 365 / Inventory Turnover   Trade Payables Turnover – Cost of Sales / Trade Payables   Days’ Payable – 365 / Trade Payables Turnover   Working Capital Turnover – Net Sales / Net Working Capital   Debt / Worth – Total Liabilities / Tangible Net Worth   Fixed / Worth – Net Fixed Assets / Tangible Net Worth   Profit Before Taxes / Tangible Net Worth   Profit Before Taxes / Total Assets   Sales / Total Assets   Officers’, Directors, & Owners’ Comp / Sales

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Data Source Annual Statement Studies Financial Ratio Benchmarks 2008 2009 Version Risk Management Association