Calculate the following ratios for the Rollins Inc. (one of the largest Pest Control Companies in the United States, the large
Rollins
Large Firm Small Firm
a. Quick Ratio
b. Inventory turnover ratio
c. Profit Margin
d. Accounts Receivable Turnover Ratio
1. Which firm can best meet its short term obligations? What is a way for the other firms to strengthen their ability to meet t
2. Are any of the companies buying and storing too much inventory? What is an advantage and a disadvantage of storing less
3. What could be causing the larger firms to have a lower profit margin than the small firm, and how can the smaller firm mai
4. Why does the small pest control company not have an accounts receivable turnover ratio?
5. Which company’s accounts receivable turnover ratio is the highest? What could be causing one to be higher than the other
6. How could a firm lower its accounts receivable turnover ratio? Under what circumstances would a company desire a lower
the United States, the large Pest Control Firm, and the Small Pest Control Firm using the given financial data. Then answer the followin
al data. Then answer the following questions:
Ratio Analysis:
Revenue
Cost of Goods Sold
Total Other Expenses
Rollins Inc. (NYSE: ROL)
Current Year
Prior Year
$ 2,424,300,000 $ 2,161,220,000
$ 1,162,617,000 $ 1,048,592,000
$
786,845,000 $ 757,908,000
Cash
Accounts Receivable
Inventory
Loans to Shareholders
Prepaid Insurance
Security Deposits
Buildings & Other Depreciable Assets
Accumulated Depreciation
Accounts Payable
Credit Card Payable
Accrued Payroll
Accrued Property Tax
Note Payable – Vehicle 1
Note Payable – Vehicle 2
Credit Sales
105,301,000
165,731,000
28,926,000
449,148,000
(315,891,000)
44,568,000
97,862,000
$
98,477,000
150,053,000
30,843,000
472,278,000
(294,226,000)
64,596,000
0
91,011,000
1,575,795,000 $ 1,512,854,000
Large Pest Control Firm
Current Year
Prior Year
17,059,506.00 11,609,554.00
9,936,614.00
5,738,857.00
5,647,913.00
2,961,258.00
1,983,199.00
979,462.00
973,499.00
3,075,744.00
1,790,080.00
490,126.00
15,000.00
9,630.00
3,673,532.00
(2,473,298.00)
361,026.00
150,000.00
3,144,468.00
(2,112,733.00)
361,573.00
162,094.00
68,000.00
366,582.00
68,000.00
14,750,000
10,500,000
Small Pest Control Firm
Current Year
Prior Year
683,710.00
565,320.00
72,085.00
96,465.00
366,310.00
378,838.00
$
$
$
$
75,154.00
1,981.00
34,084.00
$
$
55,503.00 $ 55,503.00
(43,921.00) $ (36,200.00)
$
$
19,725.00 $ 15,948.00
1,713.00 $ 8,478.00
$
$
10,311.00 $ 12,766.00
10,311.00 $ 12,767.00
$
–
$ 7,154.00
$
$
800.00
$ 40,000.00
$
–

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