BA541
Financial Management and Analysis
FINANCIAL RATIO ANALYSIS
-BY DEVANAND JAYAPAUL
COMPANY INFORMATION
Cloudera, Inc. was founded in 2008 and is headquartered in Palo Alto, California
Cloudera, Inc. provides platform for machine learning and analytics in the United States, Europe,
and Asia.
The company operates through two segments, Subscription and Services.
Its platform delivers an integrated suite of capabilities for data management, machine learning,
and analytics to customers for transforming their businesses.
Mr. Thomas J. Reilly CEO & Director
Mr. Michael A. Olson Founder & Chief Strategy Officer
Mr. James W. Frankola Chief Financial Officer
Mr. Amr Awadallah Co-Founder & Global CTO
Mr. Scott J. Davidson Chief Operating Officer
COMPANY INFORMATION
Pivotal Software, Inc., together with its subsidiaries, provides an integrated solution that
combines a cloud-native application platform and services in the United States.
The company also enables its customers to accelerate their adoption of a modern software
development process and their business success using its platform through its strategic services,
Pivotal Labs (Labs).
Pivotal Software, Inc. markets and sells PCF and Labs through its sales force and ecosystem
partners. The company was founded in 2013 and is headquartered in San Francisco, California.
Name Title
Mr. Paul Maritz Exec. Chairman
Mr. Robert C. Mee CEO & Director
Mr. William Cook Pres
Mr. Onsi Fakhouri Sr. VP of Cloud R&D
Ms. Cynthia Gaylor Sr. VP & CFO
Financial Ratio Analysis
FINANCIAL RATIOS CLOUDERA PIVOTAL
FIRM LIQUIDITY 1/31/2018 1/31/2017 1/31/2016 2/2/2018 2/3/2017 1/29/2016
Current Ratio Current assets /Current Liabilities 1.694061199 1.462662 1.8492936 1.018383 1.175838 0.2819292
Acid Test Ratio (Cash+Accounts receivables)/Current Liabilities 0.552337072 0.7350284 0.5080635 0.874126 0.998959 0.2202427
Days in Receivables Accounts Receivables/Daily Credit sales
OR
(Accounts Receivables/Annual revenue)*365 129.7108259 141.99882 108.61106 173.2252 127.4681 67.873673
Accounts Receivable Turnover Annual Credit Sales/Accounts Receivable 2.813951707 2.5704438 3.3606153 2.107084 2.863461 5.3776374
Days in Inventory Inventory/Daily Cost of Goods sold NA NA NA NA NA NA
Inventory Turnover Cost Of Goods Sold/Inventory NA NA NA NA NA NA
Financial Ratio Analysis
OPERATING PROFITABILITY
Operating Return on Assets (Operating Profits/Total Assets)*100 0.303860653 0.3932671 0.1768128 0.243665 0.162973 0.1001065
Operating Profit Margin Operating Profits/Sales
OR
Revenue-Cost of Goods Sold/Revenue 0.569906081 0.6667458 0.5461373 0.551673 0.437022 0.3330141
Total asset Turnover Sales/Total Assets 0.533176717 0.5898306 0.3237516 0.441683 0.372917 0.3006074
Accounts Receivables
Turnover Annual Credit Sales/Accounts Receivable 2.813951707 2.5704438 3.3606153 2.107084 2.863461 5.3776374
A high turnover ratio means your company is efficiently collecting debt and managing accounts receivable.
Inventory Turnover Cost Of Goods Sold/Inventory NA NA NA NA NA NA
Fixed Assets Turnover Sales/Net Fixed Assets 2.35510191 2.8115077 0.8214992 0.647591 0.528555 0.3609895
Financial Ratio Analysis
FINANCING DECISIONS
Debt Ratio Total Debt/Total Assets NA NA NA NA NA NA
Times Interest Earned Operating profits/Interest NA NA NA NA NA NA
Ability of an organization to pay its debt obligations
RETURN ON EQUITY
Return on Equity Net income/Total Common Equity -1.194490629 0.3872138 0.5913761 -0.23125 0.473257 0.9575656
Check for the Cash Flow as well
FINANCIAL RATIOS CLOUDERA PIVOTAL
FIRM LIQUIDITY 1/31/2018 1/31/2017 1/31/2016 2/2/2018 2/3/2017 1/29/2016
1 Current Ratio Current assets /Current Liabilities 1.69 1.46 1.85 1.0 1.2 0.3
Company's ability to pay short-term obligations, or those due within one [Link] every 1 dollar debt amount
available to pay
Takeaway from
(Cash+Accounts receivables)/Current
2 Acid Test Ratio Liabilities 0.55 0.74 0.51 0.87 1.00 0.22
Companies with an acid-test ratio of less than 1 do not have enough liquid assetsto pay their current liabilities and should be treated with caution. If the acid-test
ratio is much lower than the current ratio, it means that a company's current assets are highly dependent on inventory.
3 Days in Receivables Accounts Receivables/Daily Credit sales
the Analysis
OR
(Accounts Receivables/Annual
revenue)*365 129.7 142.0 108.6 173.23 127.47 67.87
Accounts Receivable
4 Turnover Annual Credit Sales/Accounts Receivable 2.8 2.6 3.4 2.9 2.11 2.86 5.38 3.4
A high turnover ratio means your company is efficiently collecting debt and managing accounts receivable.
5 Days in Inventory Inventory/Daily Cost of Goods sold NA NA NA NA NA NA
6 Inventory Turnover Cost Of Goods Sold/Inventory NA NA NA NA NA NA
OPERATING PROFITABILITY
7 Operating Return on Assets (Operating Profits/Total Assets)*100 0.30 0.39 0.18 0.2 0.2 0.1
Operating return on assets indicates the company's operating income generated per dollar invested
in total assets.
8 Operating Profit Margin Operating Profits/Sales
Takeaway from
OR
Revenue-Cost of Goods Sold/Revenue 0.57 0.67 0.55 0.6 0.4 0.3
the Analysis
How much profit a company makes on a dollar of sales, after paying for variable costs of production, such as wages and raw
materials, but before paying interest or tax
9 Total asset Turnover Sales/Total Assets 0.53 0.59 0.32 0.4 0.4 0.3
The higher the asset turnover ratio, the more efficient a company. Conversely, if a company has a low asset turnover ratio, it
indicates it is not efficiently using its assets to generate sales.
Annual Credit Sales/Accounts
10 Accounts Receivables Turnover Receivable 2.8 2.6 3.4 2.9 2.11 2.86 5.38 3.4
A high turnover ratio means your company is efficiently collecting debt and managing accounts
receivable.
11 Inventory Turnover Cost Of Goods Sold/Inventory NA NA NA NA NA NA
12 Fixed Assets Turnover Sales/Net Fixed Assets 2.36 2.81 0.82 0.6 0.5 0.4
Higher fixed asset turnover ratio indicates that a company has more effectively utilized investment in fixed assets
to generate revenue.
OPERATING
PROFITABILITY
Operating Return on (Operating Profits/Total
7 Assets Assets)*100 0.30 0.39 0.18 0.2 0.2 0.1
Operating return on assetsindicates the company's operating income
generated per dollar invested in totalassets.
8 Operating Profit Margin Operating Profits/Sales
Takeaway from
OR
Revenue-Cost of Goods
Sold/Revenue 0.57 0.67 0.55 0.6 0.4 0.3
the Analysis
How much profit a company makes on a dollar of sales, after paying for variable costs of production,
such as wages and raw materials, but before paying interest or tax
9 Total asset Turnover Sales/Total Assets 0.53 0.59 0.32 0.4 0.4 0.3
The higher the asset turnover ratio, the more efficient a company. Conversely, if a company has a low
asset turnover ratio, it indicates it is not efficiently using its assets to generate sales.
Accounts Receivables Annual Credit Sales/Accounts
10 Turnover Receivable 2.8 2.6 3.4 2.9 2.11 2.86 5.38 3.4
A high turnover ratio means your company is efficiently collecting debt and
managing accounts receivable.
11 Inventory Turnover Cost Of Goods Sold/Inventory NA NA NA NA NA NA
12 Fixed Assets Turnover Sales/Net Fixed Assets 2.36 2.81 0.82 0.6 0.5 0.4
Higher fixed asset turnover ratio indicates that a company has more effectively utilized
investment in fixed assets to generate revenue.
FINANCING
DECISIONS
13 Debt Ratio Total Debt/Total Assets NA NA NA NA NA NA
Takeaway from
the Analysis
Times Interest
14 Earned Operating profits/Interest NA NA NA NA NA NA
Ability of an organization to pay its debt
obligations
RETURN ON
EQUITY
Net income/Total Common
15 Return on Equity Equity -1.19 0.39 0.59 -0.1 -0.2 0.5 1.0 0.4
Check for the Cash Flow as well
Conclusion
• If the performance is good then it is highlighted in green.
• This is a good indicator that the highlighted company has
performed good in that finance derivative.
• I could see that in comparison with pivotal,Cloudera has
performed well in the last 3 years on an average.
References
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