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Words: | Submitted: Sun Jun 27 2004
... SALES OUTSTANDING 1.80 1.80 1.90 2.20 2.40 P/E RATIO 20.37 17.48 20.15 14.54 16.60 INTEREST COVERAGE RATIO 148.51 #DIV/0! #DIV/0! #DIV/0! #DIV/0! MARKET TO BOOK RATIO 3.22 2.48 2.78 2.46 2.78 The following table shows the average of the five other company's Current Ratio, Gross Profit Margin, ROE, Net Profit Margin, Debt Ratio, Total Asset Turnover, Days' Sales Outstanding, P/E Ratio, Interest Coverage Ratio, and Market to Book Ratio for FY2003, FY2002, FY2001, FY2000, and FY1999.2 Table 2: Average Ratios for Five Industry Peers 2003 2002 2001 2000 1999 CURRENT RATIO 0.10 0.61 0.67 0.58 0.62 GROSS PROFIT MARGIN 0.60 0.60 0.21 0.23 0.63 ROE 0.85 0.82 0.76 0.62 0.70 NET PROFIT MARGIN 0.06 0.06 0.06 0.06 0.05 DEBT RATIO 0.13 0.18 0.13 0.10 0.17 TOTAL ASSET TURNOVER 1.66 1.60 1.67 1.78 1.69 DAYS' SALES OUTSTANDING 2.20 3.62 4.98 4.42 5.24 P/E RATIO 31.50 26.84 26.24 25.74 25.84 INTEREST COVERAGE RATIO 31.92 26.41 27.45 18.08 14.23 MARKET TO BOOK RATIO 4.16 3.82 3.77 3.58 3.14 When comparing Outback Steakhouse International with the industry average, it is clear that Outback Steakhouse International is one of the industry leaders. It is interesting to note that they may not be maximizing their full potential. Both Outback Steakhouse International and the industry peers are significantly lower than the recommended 2.0 and cannot cover their current liabilities with their Current Assets, but Outback Steakhouse International is higher than the industry average, while following the same trend. Outback ...
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