Financial Analysis of a Company

good very good The Loewen Group Inc. was founded in 1969. The company has two major headquarters in North America, one in Burnaby, British Colombia and a second in Cincinnati, Ohio. Loewen Group Inc. (L.G.I.) is the largest funeral services enterprise in Canada and is the second largest company in the North American Funeral Services Industry. L.G.I. owns 918 funeral homes and 269 cemeteries and also engages in the pre-need selling of funeral services …

…thousands of U.S. Dollars)         1995         1994         Symbols          Total assets         2262980         1326275         A          Total liabilities         1648298         915136         L          Total equity         614682         411139         E          Total revenue         599939         417328         REV          Net income         (76684)         38494         NI          Interest expense         50913         34203         INT          Income tax rate         (38.1) %         33.9 %         TR          After-tax interest expense         50913 * 1.381 = 70311         34203 * .661 = 22608         ATI = INT (1 - TR)                                              ROE (return on equity)         (76684) / 614682 = (0.125)         38494 / 411139 = 0.094         NI / E          SR (sales return before interest)         [(76684) + 70311] / 599939 = (0.011)         [38494 + 22608] / 417328 = 0.146         [NI + ATI] / REV          AT (asset turnover)         599939 / 2262980 = 0.265         417328 / 1326275 = 0.315         REV / A          ROA (return on assets)         [(76684) + 70311] / 2262980 = (0.003)         [38494 + 22608] / 1326275 = 0.046         [NI + ATI] / A          IN (average interest rate after tax)         70311 / 1648298 = 0.043         22608 / 915136 = 0.025         ATI / L          D / E (debt-equity ratio)         1648298 / 614682 = 2.682         915136 / 411139 = 2.226         L / E