ADP ADP 2,017 2,018 2,019 NOPAT is EBIT * (1 - Tax Rate) NOPAT is EBIT * (1 - Tax Rate) NOPAT is EBIT * (1 - Tax Rate) EBIT (adjusted EBIT)* 14,541 EBIT (adjusted EBIT)* 14,541 EBIT (adjusted...

ADP
    ADP
    2,017        2,018        2,019
    NOPAT is EBIT * (1 - Tax Rate)        NOPAT is EBIT * (1 - Tax Rate)        NOPAT is EBIT * (1 - Tax Rate)
    EBIT (adjusted EBIT)*    14,541    EBIT (adjusted EBIT)*    14,541    EBIT (adjusted EBIT)*    14,541
    Tax Rate    17.0%    Tax Rate    ERROR:#DIV/0!    Tax Rate    ERROR:#DIV/0!        Tax Rate    Taxes Paid    2,374
    NOPAT    12,071    NOPAT    ERROR:#DIV/0!    NOPAT    ERROR:#DIV/0!            EBT    13,976
    Incremental Fixed Investments:        Incremental Fixed Investments:        Incremental Fixed Investments:                Just for FUN - Learned a bit more depth from the MD&A section
    New PPE    (16,861)    New PPE    (16,861)    New PPE    (16,861)
    New Acquisitions    (2,461)    New Acquisitions    (2,461)    New Acquisitions    (2,461)                AWS    Prime
    Add Back Depreciation (non cash)    21,789    Add Back Depreciation (non cash)    21,789    Add Back Depreciation (non cash)    21,789            Revenue    35,026    245,496    280,522
     Net Incremental Fixed    2,467     Net Incremental Fixed    2,467     Net Incremental Fixed    2,467            Costs    25,825    240,156    265,981
                                     EBIT    9,201    5,340    14,541
                                    Operating Margin    26.3%    2.2%    5.2%
    Incremental Working Capital        Incremental Working Capital        Incremental Working Capital
    Change in Inventory    (3,278)    Change in Inventory    (3,278)    Change in Inventory    (3,278)
    Change in AR    (7,681)    Change in AR    (7,681)    Change in AR    (7,681)
    Change in Prepaids    - 0    Change in Prepaids    - 0    Change in Prepaids    - 0
    Change in AP & Accruals    6,810    Change in AP & Accruals    6,810    Change in AP & Accruals    6,810
     Net Incremental WC    (4,149)     Net Incremental WC    (4,149)     Net Incremental WC    (4,149)
    Free Cash Flow (FCF)    10,389    Free Cash Flow (FCF)    ERROR:#DIV/0!    Free Cash Flow (FCF)    ERROR:#DIV/0!
    *Adjusted EBIT: When there are significant one-time Accounting non-cash charges we can adjust the EBIT to account for it.
     Essentially what would the EBIT be as if they didn't have these one time charges. What is the TRUE EBIT from operations.
ADP 2
    For the Company ADP,  Complete a full set of ratio analysis using the standard set of ratios from the text.  Not all will apply so use your judgement.  
    For 2 years only 2018, 2017.  
    Do some light analysis.  Pick one or two metrics that have changed materially (significantly) and make an observation.  
    This is a homework assignment so it's not deep analysis.  Directional change (bette
worse) is good.  
    A.    Profitability ratios    Column1    2017    2018
        ** = Recommended
          1.    Profit margin **
          2.    Return on assets (investment) ** 
            and ROIC **
          3.    Return on equity
    B.    Page 58
        Asset utilization ratios
          4.    Receivable turnove
          5.    Average collection period
          6.    Inventory turnover ** If they are a company that heavily uses inventory
          7.    Fixed asset turnover**
          8.    Total asset turnove
    C.    Liquidity ratios
          9.    Cu
ent ratio **
        10    Quick ratio
    D.    Debt utilization ratios
        11    Debt to total assets
        12    Times interest earned ** 
        13    Fixed charge coverage **