S&S Air Presented by Kaneisha Hamilton

 Was founded 10 years ago by Mark Sexton and Todd Story.  Manufactures and sells light planes.  The company has two major model planes  The Birdie $53,000  The Eagle $78,000  Builds planes to order ( about 5 weeks ) S&S Air Background

S&S Air Financial Statements Balance Sheet for S&S Air, Inc. Current Assets Cash280,800 Accounts Receivable505,200 Inventory566,400 Total Current Assets1,352,400 Fixed Assets Net plant and equipment8,673,600 Total Assets10,026,000 Liabilities & Equity Accounts Payable596,400 Notes payable1,207,200 Total Current liabilities1,803,600 Long term debt3,114,000 Shareholders equity common stock120,000 Retained earnings4,988,400 Total Equity5,108,400 Total liabilities and equity10,026,000 Income Statement Sales15,444,000 COGS10,884,000 Other Exp.1,845,600 Depreciation504,000 EBIT2,210,400 Interest277,800 Taxable Income1,932,600 Taxes (40%)773,040 Net Income1,159,560 Dividends347,868 Add. To RE811,692

S&S Air Financial Ratios Financial Ratios Median75%S&S Air Current Ratio Quick Ratio Cash Ratio Total Asset Turnover Total Debt Ratio Debt-Equity Ratio Equity Multiplier Times Interest Earned Cash Coverage Ratio Profit Margin % Return on Assets % Return on Equity %

 Mark and Todd created a ratio for inventory.  Inventory / Current Liabilities  566,400 / 1,803,600 =.314  It would be less than the median in the industry  This all implies that S&S Air has less inventory than the median of the industry, but more accounts receivable.  Lacks relevance New Ratio (Inventory)

 Produce commercial planes (747 and 787 Dreamliner)  Involved with producing products for the Department of Defense and Space Programs.  Mark and Todd cannot use Boeing as an aspirant company in its ratio analysis  Size difference between the companies is great.  Boeing offers more than just the basic commercial aircraft Boeing Co. Aspirant?

 The Internal Growth Rate of S&S Air .0917 or 9.17%  This is how much the company can grow without outside financing of any kind.  Sustainable Growth Rate .1919 or 19.19%  This means that the company can grow 19%, until it has to borrow more money. S&S Air Growth