Acc 300 final draft
Transcript of Acc 300 final draft
Joy Global, Inc.Financial Statement Analysis
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Financial Statement Analysis
Tyler Dail – Alex Dutton – Nathan Dutton
ACC 301-002
Professor Clark
Joy Global, Inc.Financial Statement Analysis
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Table of Contents
Background..........................................................................................................................5
Operating Sectors.................................................................................................................5
Benchmarking .....................................................................................................................6
Caterpillar..................................................................................................................7
Komatsu.....................................................................................................................8
Statement Analysis...............................................................................................................9
Balance Sheet.............................................................................................................9
Income Statement..............................................................................................................10
Ratio Analysis ...................................................................................................................11
Liquidity..................................................................................................................11
Leverage..................................................................................................................12
Asset Management .................................................................................................13
Profitability.............................................................................................................13
Market Strength......................................................................................................14
Trend Analysis...................................................................................................................15
Sales Revenue.........................................................................................................15
EPS from Operations..............................................................................................16
Net Cash Flows from Operating Activities.............................................................16
Annual Report ...................................................................................................................17
Stock Repurchase Program.....................................................................................17
Letourneau Acquisition...........................................................................................18
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Results of Operations Overview ............................................................................18
Industry Trends .................................................................................................................19
Reduction of Capital Spending ..............................................................................19
Globalization...........................................................................................................20
Final Recommendation......................................................................................................20
Works Cited ......................................................................................................................22
Appendix ...........................................................................................................................23
Charts......................................................................................................................23
Chart 1: Current Ratio....................................................................................23
Chart 2: Quick Ratio......................................................................................23
Chart 3: Financial Leverage...........................................................................24
Chart 4: Interest Coverage.............................................................................24
Chart 5: Receivables Turnover......................................................................25
Chart 6: Inventory Turnover .........................................................................25
Chart 7: Return on Equity..............................................................................26
Chart8: Total Asset Turnover........................................................................26
Chart9: EPS from Operations........................................................................27
Chart 10: Dividend Payout.............................................................................27
Chart 11: Sales Revenue ...............................................................................28
Chart 12: Net CF from Operating Activities..................................................28
Tables.......................................................................................................................29
Table 1: Joy Global Balance Sheet................................................................29
Table 2: Caterpillar Balance Sheet................................................................31
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Table 3: Komatsu Balance Sheet...................................................................33
Table 4: Joy Global Income Statement..........................................................35
Table 5: Caterpillar Income Statement..........................................................37
Table 6: Komatsu Income Statement.............................................................39
Table 7: Joy Global Statement of Cash Flows...............................................41
Table 8: Caterpillar Statement of Cash Flows...............................................42
Table 9: Komatsu Statement of Cash Flows..................................................44
Table 10: Joy Global Common Size Balance Sheet......................................45
Table 11: Caterpillar Common Size Balance Sheet.......................................47
Table 12: Komatsu Common Size Balance...................................................49
Table 13: Joy Global Common Size Income Statement................................51
Table 14: Caterpillar Common Size Income Statement................................53
Table 15: Komatsu Common Size Income Statement ....…………………..55
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Background
Ever since their inception in the late 19th century, Joy Global Inc.(JOYG) has been a
worldwide leader in manufacturing and servicing equipment used in the mining industry. They
operate in six of the continents in 20 countries around the world. China being their largest
customers, Joy also has great interest in operating in and manufacturing for India and Russia
where they are employing an emerging market strategy. Joy has three main operations, which
are to design, make, and support/service equipment that is critical to have in the mining industry.
This machinery helps to mine a wide variety of resources, ranging from coal and copper to oil
sands and gold. Due to the riskiness of the mining business, Joy Global also has a good sum of
money invested in making their products as safe as possible. They say that “safety is a huge
factor” and that their “incident rate is world class.” (“Joy Global”) The fact that consumers trust
their products is definitely a contributing factor to their success as a worldwide industry.
Operating Sectors
Joy Global has two main classifications of operations, underground mining and surface
mining. These two operations are managed through the sectors P&H Mining and Joy Mining
and Machinery. Both of these sub-industries operate in wide variety of countries, as stated
earlier. In 2004, P&H Mining and Joy Mining and Machinery bought out Oldenburg Group, a
separate entity also in the industry of manufacturing mining machinery. As a corollary, P&H
and Joy were given the privilege to sell Oldenburg products in China, India, Russia, and Poland,
which is a large factor for Joy Global’s interest in emerging markets (Engineering and Mining
Journal). Although these separate companies do very similar jobs, they each bring very different
customers to Joy Global and produce different types of machinery.
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The surface mining industry requires large excavating and drilling machines in order to
get down to the desired resource. P&H Mining provides equipment to 90% of the world’s
surface mines. They manufacture three main lines of equipment, electric mining shovels, rotary
blasthole drills, and walking draglines.
At the other end, there is Joy Mining and Machinery who manufactures equipment used
in the removal of coal and other materials bedded underground. Some of their main product
lines include roof supports, longwall shearers, face conveyors, continuous miners, and batch
haulage vehicles.
Benchmarking
For benchmarking purposes, we chose to compare Joy Global, Inc. to Komatsu Global
(KMTUY) and Caterpillar, Inc (CAT). The reason for the choice of these companies is each of
them specializes in manufacturing construction and mining equipment. All three of these
companies operate on a global scale and while Joy Global is not quite as large as the latter two,
we feel that the similarities among their operating activities make them very comparable.
These three companies operate in the industrial machinery industry. They are not only
huge players here in the United States, but also overseas in countries such as China, Japan, and
India. That being said, all are heavily invested in exporting goods and safety precautions for
their equipment.
Another reason for choosing these three firms for benchmarking came from analyzing
their comparative balance sheets and income statements. All being firms that manufacture
mining equipment, a huge portion of their assets is dedicated to plant, property, and equipment.
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That being said, there is also a big chunk dedicated to receivables considering nearly all of their
equipment must be sold on credit.
Caterpillar
Founded in 1925 in Peoria, Illinois (Boomsma & Peterson), Caterpillar is a huge
competitor in the mining industry. Caterpillar operates out of more than 500 locations
worldwide, with more than half of their sales outside of the United States. They make three
main product lines which are machinery, engines, and financial products. They are the leading
manufacturer of construction and mining equipment.
One of their main highlights is their ability to remanufacture equipment. Last year alone,
the company took “$2.2 million end of life units and remanufactured over 161 million pounds of
material.” (“Caterpillar, Inc.”) Their ability to do so allows them to make equipment for a
fraction of the cost and is a big reason as to why they are a global success.
Recently, Caterpillar has been making moves in order to match Joy Global’s ability to
operate in the surface mining industry along with the underground mining industry. “While the
new mining strategy is considered global, there are specific international markets Caterpillar is
hoping to penetrate. The world’s largest equipment maker enjoys a fair share of the US mining
market but faces stiff competition in China, Russia, and India, markets seen as growth areas as
mining technology and methods improve in the regions.” (Rubenstone) This upcoming trend is
likely to show effects on not only Caterpillar’s performance, but close competitor’s performance
as well, such as Joy Global and Komatsu.
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Komatsu
Komatsu is headquartered in Akasaka, Minato, and Tokyo, Japan. The corporation was
named after the city of Komatsu, Ishikawa, where the company was founded in 1921. There are
manufacturing operations in Japan, Asia, Americas and Europe, and are always expanding.
Komatsu is one of the world’s largest manufacturers of mining equipment, and are annual
competitors for being the number one producer of this type of equipment. As of last year,
Komatsu is the world’s second- biggest mining equipment maker. The largest competitor to
Komatsu is Caterpillar, which is the other company that we are using as a benchmark for Joy
Global. They are a multinational organization that specializes in manufacturing mining
equipment and market a full line of construction equipment from small construction size to some
of the largest mining size. Komatsu’s product line includes hydraulic excavators, wheel loaders,
crawler dozers, off-highway trucks, and motor graders. The company also produces military
equipment, as well as industrial equipment like press machines, lasers and thermoelectric
generators.The Constructing Machine and Vehicle segment provides excavation, loading, land-
clearing, base course use; transporting, forestry, underground construction and resources recycle
machines, industrial vehicles, foundry pieces, as well as transportation, storehouse and packing
related services. (“Komatsu Global”) Recently, in 2008, they introduced the world’s first hybrid
hydraulic excavator.
Just like Joy Global and Caterpillar, Komatsu is continually looking to expand. They
have huge markets in Japan and China. They are very prominent in Europe and parts of the US
as well.
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Statement Analysis
It is crucial to benchmark and analyze financial statements when making any sort of
business decision. This allows you to see where your firm stands, where your competitors stand,
and certain trends that may make or break an investment decision.
Balance Sheet
With these companies, there are many similarities and differences among their assets,
liabilities, and equity. In this industry, it is crucial to have a large amount of assets in the
inventory and property, plant, and equipment accounts due to the manufacture of large pieces of
machinery. From the common size balance sheets it is very noticeable that CAT dedicates a
lesser portion of their total assets to inventories. From 2006 to 2010, their inventories ranged
from 12% to 15% respectively, whereas in 2010 JOYG and KMTUY had 23% and 20% in
inventories, respectively (Tables 10,11,&12). This suggests that CAT is more efficient at either
selling or producing their equipment. Each of the three companies has a large portion of their
total assets dedicated to receivables, averaging about 25% each. Due to the capital required to
purchase such machinery, a large amount of credit for customers is necessary in order to stay
profitable.
A red flag that may pose potential problems for investors is CAT’s big portion of long
term debt. In 2010, roughly 32% of their total assets were in long term debt (Table 11). That,
along with the high debt definitely causes some reason for concern. Although this may mean the
company is trying to expand through using debt, this has the potential to severely hurt operating
activities. Also, the high debt causes potential for a missed debt interest payment and as a
corollary the credit rating of the firm could be damaged, which is vitally important in this
industry.
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From looking at JOYG’s balance sheet, it is obvious that they have been very profitable
over the past few years. From 2006 to 2010, their retained earnings account increased from $244
million to $1,342 million (Table 1). Although this means that JOYG has been putting more of
their profits in retained earnings than shelled out as dividends, it is still very promising for
investors. Usually when a firm has high retained earnings their cash balance tends to decrease
due to the fact more funds are being put in retained earnings instead of being spent. But by
looking at the same table, it is evident that their cash balance has been increasing almost in direct
proportion with retained earnings. In just five years, they were able to quintuple their cash
account.
Also evident from the common size balance sheets is that in 2007 and 2008, JOYG made
a move to repurchase a big chunk of its stock back. In 2006, treasury stock was at a mere $295
million. But through 2007 and 2008, it grew to $1,102 million where it remained pretty constant
for the next couple of years. The common size balance sheet shows this being about 35-40% of
total assets. CAT shows their treasury stock as being consistently about 15% of total assets
while KMTUY doesn’t go much over 1% (tables 10,11,&12). This simply means that these two
companies have many more shares outstanding to shareholders.
Income Statement
Income statements are very helpful in assessing the strength of a firm, especially when
benchmarking. Since these firms operate in the same industry, it is not surprising that all three
companies have extremely similar cost of goods sold. From 2006 to 2010 JOYG, CAT, and
KMTUY sell goods that cost them roughly 65-70% of their total sales (tables 13,14,&15).
Selling and administrative expenses prove to have similar trends. Comparatively, JOYG usually
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has a higher operating profit than CAT and KMTUY, closing out the 2010 fiscal year with 20%
of total sales, whereas CAT and KMTUY both close with roughly 12%.
By looking at JOYG’s sales for the past year it further proves their continuing
profitability. In just five years, they were able to increase their sales by nearly $1,100 million
(Table 4). Part of this can be described by their success in China, where they have recently had
record breaking years. Joy plans to implement their emerging market strategy in India and
Russia which may prove to show even more profitability in the upcoming years.
From the income statements you can also somewhat tell the depreciation method used
from the tax effect presented. By observing CAT’s common -size income statement, one could
infer they use a method of accelerated depreciation in order to receive the tax benefit. In 2009,
they had a relatively large depreciation expense of 7% of total sales and in return, had a tax
refund of 0.8% of total sales. JOYG appears to use a method similar to straight-line
depreciation. From 2006 to 2010, they have pretty constant depreciation expenses ranging from
$40 million to $70 million. Correlating to those amounts, their income taxes also remained
relatively constant (except for 2006 where the low income tax expense can be explained by the
oddly low interest expense).
Ratio Analysis
Liquidity
Liquidity refers to a company’s short-term ability to generate cash for immediate
repayment of debt or working capital needs. Having good liquidity ratios shows investors that a
certain company is in control of its assets and efficient at generating cash when needed. The
most common ratio used when evaluating liquidity is the current ratio. Using this ratio, it is
obvious that JOYG is the most liquid out of the three companies. Except for in 2008 where they
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dipped to about 1.5, JOYG’s current ratio typically stays about 0.5-0.7 ahead of the other two
companies. CAT and KMTUY are pretty consistent with their current ratio as can be seen in
Chart 1.
Another liquidity measure is quick ratio. This is very similar to current ratio except it
does not include inventories in the numerator of the calculation. This is a more short term
measure of current ratio since inventories are not as easily converted to cash as receivables and
short-term investments. By eliminating inventories, the three companies become much more
comparable. Through 2008, JOYG, CAT, and KMTUY are very closely related with quick
ratios of 0.731, 0.82, and 0.733 respectively. In the next two years, maybe due to a decrease in
current liabilities, JOYG obtains a comparably higher quick ratio of 1.46 (Chart 2).
Leverage
Leverage can be defined as either the amount of debt used to finance a firm’s assets or
the use of borrowed capital to increase the potential return of an investment. By looking at the
chart you can see that JOYG and KMTUY use very similar leverage, averaging between 2.0 and
3.0 from 2006 to 2010 (Chart 3). CAT has a much higher leverage, maxing out at 8.3 in 2008.
This is not necessarily a bad thing; as stated earlier it just means they use more long-term debt
than the other two for financing activities.
Interest coverage is also important to look at when analyzing leverage. This is how easily
companies can pay interest on the debt they take on. Without surprise, CAT has a very low
interest coverage due to the large amount of debt they take on to finance operating activities.
KMTUY has relatively average interest coverage through 2010 then in 2011 sees a spike to 36.3.
This is mainly due to a drop in their long term debt in that year, making it easier for the company
to make the interest payments on that debt.
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Asset Management
A company’s ability to manage their assets is crucial to success. For this specific
industry, receivables turnover is a huge factor considering the amount of machinery they sell on
credit. Being able to collect money on those accounts pretty much decides how the company is
going to fair. Referring to Chart 5, it is clear that JOYG is the most efficient at collecting on
their accounts. You must also take into account the size of the company though. Since JOYG
operates on a smaller scale, it is naturally going to be easier for them to collect on accounts.
KMTUY and CAT are pretty consistent on the rate at which they collect on receivables. Chart 5
shows that CAT has a rate of 2.6 in 2006 and a rate of 2.7 in 2010 with mild fluctuations in
between. This was the same for KMTUY, with a rate of 4.1 in 2006 and 3.6 in 2010.
Inventory turnover is also a big factor for companies in this industry. Seeing as it takes a
lot of time, capital, and effort to manufacture such machines, it is necessary that they sell them at
a decent rate. Otherwise, a firm could take a quick turn for the worse. Chart 6 shows that in
2006, there is a huge separation among the three companies’ rates of inventory turnover. CAT is
the most efficient with a rate of 4.8 while KMTUY and JOYG follow with rates of 3.3 and 2.7
respectively. 2010 shows CAT’s rate dropping almost to where the other two companies are but
all three remain above the industry average.
Profitability
Making money is the main point of any business. These ratios measure a company’s
ability to generate profit compared to the expenses incurred in a period. For many, a constant
profitability ratio that is decent compared to competitors is considered doing well.
Return on common equity measures how much money is brought to the firm from the
issuance of stock and retained earnings. Referring to Chart 7, it can be seen that these companies
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show very volatile ratios for return on equity. While KMTUY’s ratios are relatively more
constant, JOYG and CAT have overall better ratios. It is interesting that even though JOYG
showed tremendous increases in retained earnings from 2006 to 2010, they were still able to
generate enough earnings to not only keep their return on equity above the industry average, but
also above their two close competitors, KMTUY and CAT.
Total asset turnover is also an efficient way to measure profitability. This is the amount
of sales produced for every dollar’s worth of assets. Essentially, how effective the assets are at
making a profit. Considering the large amount of assets that are dedicated to inventories,
receivables, and property, plant, and equipment in this industry this is a very effective
benchmarking tool. Looking at Chart 8, it is clear JOYG is the most effective at producing a
profit from their assets. They stay at a pretty constant rate, ranging from 1.2 dollars for every
dollar of asset to 1.3 from 2006 to 2010. KMTUY closely follows averaging at about 1.0 over
the same time span while CAT stays below the dollar mark.
Market Strength
Market strength is very important to companies in this industry. Due to the large amount
of capital needed to operate, it is essential to be appealing to investors.
Some investors discern their stock purchase options on dividends. Dividend payout ratio
is what they look at in order to see the percentage of earnings that is paid to shareholders by the
company. Chart 10 shows that CAT and KMTUY would be the most appealing companies of
the three based solely on dividends. In 2009, both experience a huge spike in dividend payout
ratio then return to a normal rate in 2010. This seems to be an infrequent occurrence so based
solely on the dividend payout, CAT would be the best stock option as it sits above KMTUY and
JOYG by about 15.0 from 2006-2010.
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Other investors like to look at earnings per share to evaluate the market strength of a
certain company. This ratio measures the amount of profit/earnings allocated to each share of
stock. In this industry, there is a lot of financing from equity therefore making it necessary to be
appealing to potential investors. Chart 9 shows that CAT clearly has the best ratio for EPS but
from analyzing the graph, JOYG is on a gradual slope upward and would be the best choice for
future stock purchases based on this ratio.
Trend Analysis
Sales Revenue
Although just a piece of the big picture, analyzing revenue reveals a lot about a company.
Chart 11 shows the revenues of JOYG, KMTUY, and CAT from 2004 to 2010. It is evident
from the chart that CAT and KMTUY operate on a much larger scale than JOYG. All three
companies show continuous growth throughout the time period. This suggests that the mining
industry is in good standing and the manufacture of machinery by these companies will continue
to be profitable. JOYG shows continuous growth for this time frame. From 2004 to 2010, they
have been able to increase their revenue by $2,092.167 million (Table 4) which is nearly a 150%
increase. This may be due to their success in the emerging markets overseas along with the huge
demand in China for their products. CAT shows high revenue growth through 2008, then
declines by about 37% in 2009 followed by a vast 31% increase in 2010. This suggests the
decline is not representative of future revenue flows. KMTUY shows a gradual increase until
2007 where revenues drop $7,037.07 over the next two years. As stated earlier, KMTUY is very
interested in expanding to emerging markets. This may be a reflection of the firm adjusting to
the new markets.
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We predict that JOYG will have continual growth in their revenue over the next two
years. This is evidenced by their past continual growth and success in overseas markets. In
order to compute estimates for the next two years, we found the average growth of the revenues
over the 2004-2010 time span as a percentage and multiplied by the most recent revenue
recorded (2010). Using this technique we estimate that revenues in 2011 will equal $4,158.71
million. To estimate 2012 we kept the same percentage and multiplied by the 2011 estimated
revenue to get $4,907.28 million.
EPS from Operations
EPS from Operations valuates how well a company can function and generate a profit
from its operations. Chart 9 reveals volatile EPS from Operating Activities values for the
majority of the companies. JOYG is the only one among the three that shows continuous from
2004-2010. They started 2004 with an EPS ratio of 0.44 and increased gradually to 4.48 in 2010.
KMTUY and CAT both show growth until 2007 hits. From there, KMTUY plummets from 2.07
to 0.88 in 2008 and even further down to 0.37 in 2009. Similarly, CAT drops over 60% within
two years of their 2007 peak.
To calculate the values for JOYG’s net cash flow from operating activities in 2011 and
2012, the same method used in calculating future revenues was applied. We took the average
percent increase of the EPS values over the course of the six years and multiplied it by the most
recent EPS value recorded, 4.48. This brings the predicted EPS values for 2011 and 2012 to 7.17
and 11.47 respectively.
Net Cash Flow from Operating Activities
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As a shareholder, it’s important to know how much cash the company generates from
operating activities. This includes any revenues and expenses that relate to the central purpose
for which an entity is in business.
It can be seen immediately in Chart 12 that CAT’s cash flow from operating activities
varied greatly from 2004-2010. In 2004, this value was negative $3,991 million. This does not
mean that the company was not profitable in that year though because cash flows are just that,
cash flows. They do not take into account anything other than the cash being brought in and the
cash being taken out. Throughout the next three years, the company is able to raise that number
by $11,926 million. It seems from Chart 12 that KMTUY and JOYG have pretty consistent cash
flows for this time period but that is just because CAT’s range of cash flows is so much greater
than the two. JOYG has actually gradually increased their net cash flow from operating
activities from $62.2 million in 2004 to $583.5 million in 2010.
This increase leads us to believe that JOYG’s net cash flow from operating activities will
continue to be profitable in the next two years. Using the same methodology, we estimate that
their cash flow will be $933.58 million in 2011 and $1,493.73 million in 2012.
Annual Report
Stock Repurchase Program
After looking at Joy Global’s 2011 annual report, we found there were some noteworthy
elements included in the company. Joy Global’s stock repurchase program was one component
which we found intriguing. “Under the company’s share repurchase program management is
authorized to repurchase up to $2.0 billion in shares of common stock in the open market or
through privately negotiated transactions until December 31, 2011.During 2011 and 2010 the
company did not repurchase any shares but in 2009 they repurchased 608720 shares of common
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stock for approximately $13.7 million.” (Annual Report, 23) Repurchases can be used to signal
and/or take advantage of undervaluation. Since Joy Global repurchased stock in 2009, they may
believe that their stock is currently trading below its intrinsic value and this may be the reason
they decided to repurchase. Conversely, Joy Global may have viewed their stock value as
accurate or even over-valued and decided not to offer a repurchase. This can be in the company’s
favor because they can sell the repurchased stock from investors back at a premium if they
decide it is undervalued and choose not to if the stock is valued correctly.
LeTourneau Acquisition
The next component of the annual financial report we found noteworthy was the
acquisition LeTourneau; which took place during the third quarter of 2011 fiscal year.
LeTourneau is a company who focuses on; mining equipment steel products and drilling
products. In accordance with the agreement, Joy Global sold the drilling products business in the
fourth quarter of 2011. This sale of drilling products was to Cameron International Corporation
for $375 million. This sale could be one of the factors of why sales increased so much from 2010
to 2011. This increase of 24.9 percent in sales is considerably higher than it has been from year
to year from 2007-2010. From the acquisition date of LeTourneau until Joy Global’s fiscal year
end; there were net sales of $144.9 million and operating income of $23.2 million for the mining
equipment division. (Annual Report, 25)
Results of Operations Overview
The last aspect of the company we would like to touch on is Joy Global’s operating
results. Net sales for 2011 totaled $4.4 billion compared to $3.5 billion in 2010. As we touched
on, we believe this large increase in sales is because of the acquisition of LeToureau. “Operating
income was $920.2 million in 2011 compared to $697.1 million in 2010 and included an $18.7
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million favorable effect of foreign currency translation. The increase in operating income was
primarily the result of increased sales volumes positive price realization and favorable overhead
absorption. These items were partially offset by increased product development selling and
administrative expenses. Net income from continuing operations was $631.0 million or $5.92 per
diluted share in 2011 compared to $461.5 million or $4.40 per diluted share in 2010.”(Annual
Report, 27)
Industry Trends
Reduction of Capital Spending
In order to better understand how a company operates, the strength against competitors,
along with future performance it is crucial to understand and analyze certain trends that are going
on in Foresaid Company’s industry.
In this particular industry, slower growth in domestic and international demand will cause
customers to slow their capital spending. As a corollary, companies will be likely to reduce their
capital expenditures. This means that companies such as Joy Global will still invest in capital
projects, but be more likely to “repair or rehabilitate existing capital equipment instead of
making new purchases, except in cases of new technology or fully depreciated assets.” (Standard
&Poor’s, 6) By looking at Joy’s statement of cash flows, you can see that from 2006 to 2009
their sale of property, plant, and equipment dropped from $11 million to $1.8 million. Along
with that, their capital expenditures dropped from $94.1 million to $73.5 million from 2009 to
2010. We do not see this as a continuing trend though given the current state of the economy.
This trend is more obvious in competitor’s such as Caterpillar, who have already implemented a
huge remanufacturing process, as stated earlier.
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A big part of this industry is receiving enough credit to continue operations. Given the
immense capital it takes to produce such equipment, it is crucial to obtain credit in the form of
receivables from customers. Standard & Poor’s states that, “this industry is very capital
intensive and requires continued spending to maintain current business levels; therefore, the
contraction in credit is likely to lead to fewer plant expansions as financing is more expensive or
less available than in years past.” (Standard &Poor’s, 12) Even though Joy is still expanding
globally, a continued trend of this sort could have huge effects on their manufacturing
operations.
Globalization
Many competitors in this industry are looking to relocate to low cost regions due to
demand for reliable equipment, globalization, and cost containment. Most are doing so by
establishing manufacturing facilities in emerging markets to reduce transportation costs and
reduce time-to-market.
According to Standard & Poor’s, “it is important for companies in this industry to have a
global footprint and maintain stability through diversity.” (Standard &Poor’s, 14) In order to
have this global footprint, many firms are realizing that being bigger isn’t always better. Greater
size has led to “rising costs without a commensurate growth in revenues.” (Standard &Poor’s,
13) Joy Global is somewhat comparatively small to its competitor’s, but since 2006 their
operating income before depreciation has nearly doubled. While that is not solely due to the size
factor, this trend is in their favor and may prove to be even more profitable in the future.
Final Recommendation
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The conclusion from the previous analysis is that Joy Global is a sensible medium-term
investment. The company is showing strong signs of continued growth. Their emerging market
strategy has thus far proved to be successful and we have reason to believe that once this strategy
is implemented in India and Russia, profits will eventually be at an all-time high. Their ability to
turnover receivables and total assets (Charts 5 & 8) is huge in this industry. That paired with
their continuous increase in revenue and retained earnings make them one of the favorites among
competitors.
As stated earlier, this industry requires not only a global footprint but maintenance of
stability through expansion. Joy has more than exceeded those requirements which gives room
to believe there is a promising future. It should also be noted their ability to be a big global
player in both the underground and surface mining game.
In conclusion, there have been many aspects of the manufacture of mining machinery
viewed and as a result we believe Joy Global is a promising company to invest in. Through
analyzing and benchmarking the company, their success becomes even more evident along with
insight to what the future holds.
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Works Cited
Boomsma, Braden, and Keith Peterson. "Krause Fund Research." Caterpillar, Inc.. Krause, 2010. Print.
"Caterpillar, Inc.." . Caterpillar, Inc., 2011. Web. 26 Apr 2012. <http://www.caterpillar.com/>.
"Joy and Oldenburg Move Closer to Sales, Service Alliance." Engineering and Mining Journal. 205.7 (2004): 41. Print.
Joy Global, Inc. Annual Report – 2011
"Joy Global." . Joy Global, Inc., 2012. Web. 26 Apr 2012. <http://www.joyglobal.com/>.
"Komatsu Global." . Komatsu LTD., 2005. Web. 26 Apr 2012. <http://www.komatsu.com/>.
Research Insight
Rubenstone, Jeff. "Caterpillar Lauches $5B Global Mining Plan After Bucyrus Deal." ENR: Engineering News - Record [Milwaukee] 05 09 2011, 1. Print.
Scharf, Stewart. "Industrial Machinery." Standard & Poor's Industry Surveys. 2. New York: McGraw-Hill, 2009. Print.
Joy Global, Inc.Financial Statement Analysis
23
2004 2005 2006 2007 2008 2009 20100
0.5
1
1.5
2
2.5
Current Ratio - Chart 1
JOYGCATKMTUY
Year
Ratio
2004 2005 2006 2007 2008 2009 20100
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Quick Ratio - Chart 2
JOYGCATKMTUY
Year
Ratio
Joy Global, Inc.Financial Statement Analysis
24
2004 2005 2006 2007 2008 2009 20100
1
2
3
4
5
6
7
8
9
10
Financial Leverage - Chart 3
JOYGCATKMTUY
Year
Ratio
2004 2005 2006 2007 2008 2009 20100
5
10
15
20
25
30
35
40
Interest Coverage - Chart 4
JOYGCATKMTUY
Year
Ratio
Joy Global, Inc.Financial Statement Analysis
25
2004 2005 2006 2007 2008 2009 20100
1
2
3
4
5
6
7
Receivables Turnover - Chart 5
JOYGCATKMTUY
Year
Ratio
2004 2005 2006 2007 2008 2009 20100
1
2
3
4
5
6
Inventory Turnover - Chart 6
JOYGCATKMTUY
Year
Ratio
Joy Global, Inc.Financial Statement Analysis
26
2004 2005 2006 2007 2008 2009 20100
10
20
30
40
50
60
70
80
Return on Equity - Chart 7
JOYGCATKMTUY
Year
Ratio
2004 2005 2006 2007 2008 2009 20100
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Total Asset Turnover - Chart 8
JOYGCATKMTUY
Year
Ratio
Joy Global, Inc.Financial Statement Analysis
27
2004 2005 2006 2007 2008 2009 20100
1
2
3
4
5
6
EPS from Operations - Chart 9
JOYGCATKMTUY
Year
EPS
from
Op
2004 2005 2006 2007 2008 2009 20100
20
40
60
80
100
120
140
Dividend Payout - Chart 10
JOYGCATKMTUY
Year
Ratio
Joy Global, Inc.Financial Statement Analysis
28
2004 2005 2006 2007 2008 2009 20100
10000
20000
30000
40000
50000
60000
Sales Revenue - Chart 11
JOYGCATKMTUY
Year
Sale
s, $(
mill
ions
)
2004 2005 2006 2007 2008 2009 2010
-6000
-4000
-2000
0
2000
4000
6000
8000
10000
Net CF from Operating Act.Chart 12
JOYGCATKMTUY
Year
$, m
illio
ns
Joy Global, Inc.Financial Statement Analysis
29
Table 1 – JOYG Balance Sheet
JOY GLOBAL INC ANNUAL BALANCE SHEETTICKER: JOYG ($ MILLIONS)SIC: 3,532.000 GICS: 20106010
Oct10 Oct09 Oct08 Oct07 Oct06ASSETSCash & Equivalents 815.581 471.685 201.575 173.248 101.254 Net Receivables 674.135 580.629 632.194 560.242 431.430 Inventories 764.945 769.783 805.244 727.360 639.934 Prepaid Expenses 0.000 0.000 0.000 0.000 0.000 Other Current Assets 107.266 127.930 99.116 76.945 55.257
------------------
------------------
------------------
------------------
------------------
Total Current Assets 2,361.927 1,950.027 1,738.129 1,537.795 1,227.875 Gross Plant, Property & Equipment 686.515 600.519 503.271 436.742 367.158 Accumulated Depreciation 308.491 253.461 214.270 202.713 162.147
------------------
------------------
------------------
------------------
------------------
Net Plant, Property & Equipment 378.024 347.058 289.001 234.029 205.011 Investments at Equity 0.000 0.000 0.000 0.000 0.000 Other Investments 0.000 0.000 0.000 0.000 0.000 Intangibles 304.517 314.769 320.027 79.716 76.154 Deferred Charges 0.000 0.000 0.000 0.779 69.388 Other Assets 239.573 396.425 297.156 282.584 375.577
------------------
------------------
------------------
------------------
------------------
TOTAL ASSETS 3,284.041 3,008.279 2,644.313 2,134.903 1,954.005 LIABILITIESLong Term Debt Due In One Year 0.342 18.327 18.363 0.240 0.374 Notes Payable 1.208 1.464 8.097 0.000 4.792 Accounts Payable 291.742 206.770 291.779 199.198 200.121 Taxes Payable 0.000 0.000 0.000 0.000 0.000 Accrued Expenses 353.732 378.594 330.437 229.999 208.113 Other Current Liabilities 376.300 321.629 491.675 324.102 186.581
------------------
------------------
------------------
------------------
------------------
Total Current Liabilities 1,023.324 926.784 1,140.351 753.539 599.981 Long Term Debt 396.326 523.890 540.967 396.257 98.145 Deferred Taxes 28.222 106.591 76.171 13.308 12.446
Joy Global, Inc.Financial Statement Analysis
30
Investment Tax Credit 0.000 0.000 0.000 0.000 0.000 Other Liabilities 480.775 637.275 354.350 247.805 323.804
------------------
------------------
------------------
------------------
------------------
Liabilities - Total 1,928.647 2,194.540 2,111.839 1,410.909 1,034.376 Redeemable Noncontrolling Int. 0.000 0.000 0.000 0.000 0.000
EQUITYPreferred Stock - Redeemable 0.000 0.000 0.000 0.000 0.000 Preferred Stock - Nonredeemable 0.000 0.000 0.000 0.000 0.000
------------------
------------------
------------------
------------------
------------------
Total Preferred Stock 0.000 0.000 0.000 0.000 0.000 Common Stock 127.403 126.286 125.972 124.906 123.689 Capital Surplus 1,002.169 943.046 904.642 863.532 847.475 Retained Earnings 1,342.445 861.030 604.777 530.767 244.003 Less: Treasury Stock 1,116.623 1,116.623 1,102.917 795.211 295.538
------------------
------------------
------------------
------------------
------------------
Common Equity 1,355.394 813.739 532.474 723.994 919.629 ------------------
------------------
------------------
------------------
------------------
Stockholder's Equity - Parent 1,355.394 813.739 532.474 723.994 919.629 Nonredeemable Noncontrolling Int. 0.000 0.000 @NA @NA @NA
------------------
------------------
------------------
------------------
------------------
Stockholder's Equity - Total 1,355.394 813.739 @NA @NA @NA------------------
------------------
------------------
------------------
------------------
TOTAL LIABILITIES & EQUITY 3,284.041 3,008.279 2,644.313 2,134.903 1,954.005 COMMON SHARES OUTSTANDING 103.530 103.021 102.708 107.682 117.542
Joy Global, Inc.Financial Statement Analysis
31
Table 2 – CAT Balance Sheet
CATERPILLAR INC ANNUAL BALANCE SHEETTICKER: CAT ($ MILLIONS)SIC: 3,531.000 GICS: 20106010
Dec10 Dec09 Dec08 Dec07 Dec06ASSETSCash & Equivalents 3,667.000 4,910.000 2,787.000 1,217.000 530.000 Net Receivables 16,899.000 14,326.000 18,566.000 15,956.000 14,972.000 Inventories 9,587.000 6,360.000 8,781.000 7,204.000 6,351.000 Prepaid Expenses @CF @CF @CF @CF @CFOther Current Assets 1,657.000 1,193.000 1,499.000 1,100.000 1,240.000
------------------
------------------
------------------
------------------
------------------
Total Current Assets 31,810.000 26,789.000 31,633.000 25,477.000 23,093.000 Gross Plant, Property & Equipment 24,906.000 24,221.000 23,487.000 19,208.000 17,278.000 Accumulated Depreciation 12,367.000 11,835.000 10,963.000 9,211.000 8,427.000
------------------
------------------
------------------
------------------
------------------
Net Plant, Property & Equipment 12,539.000 12,386.000 12,524.000 9,997.000 8,851.000 Investments at Equity 135.000 70.000 66.000 582.000 542.000 Other Investments 13,228.000 14,461.000 16,734.000 15,173.000 12,411.000 Intangibles 3,419.000 2,734.000 2,772.000 2,438.000 2,291.000 Deferred Charges 0.000 0.000 0.000 0.000 0.000 Other Assets 2,889.000 3,598.000 4,053.000 2,465.000 3,691.000
------------------
------------------
------------------
------------------
------------------
TOTAL ASSETS 64,020.000 60,038.000 67,782.000 56,132.000 50,879.000 LIABILITIESLong Term Debt Due In One Year 3,925.000 5,701.000 5,492.000 5,132.000 4,461.000 Notes Payable 4,056.000 4,083.000 7,209.000 5,468.000 5,155.000 Accounts Payable 5,856.000 2,993.000 4,827.000 4,723.000 4,085.000 Taxes Payable 0.000 0.000 0.000 @CF 575.000 Accrued Expenses 4,550.000 4,148.000 5,363.000 4,304.000 3,861.000 Other Current Liabilities 3,633.000 2,367.000 3,178.000 2,618.000 1,115.000
------------------
------------------
------------------
------------------
------------------
Total Current Liabilities 22,020.000 19,292.000 26,069.000 22,245.000 19,252.000 Long Term Debt 20,437.000 21,847.000 22,834.000 17,829.000 17,680.000 Deferred Taxes 141.000 138.000 130.000 107.000 @CF
Joy Global, Inc.Financial Statement Analysis
32
Investment Tax Credit 0.000 0.000 0.000 0.000 0.000 Other Liabilities 10,097.000 9,461.000 12,138.000 7,068.000 7,088.000
------------------
------------------
------------------
------------------
------------------
Liabilities - Total 52,695.000 50,738.000 61,171.000 47,249.000 44,020.000 Redeemable Noncontrolling Int. 461.000 477.000 524.000 0.000 0.000
EQUITYPreferred Stock - Redeemable 0.000 0.000 0.000 0.000 0.000 Preferred Stock - Nonredeemable 0.000 0.000 0.000 0.000 0.000
------------------
------------------
------------------
------------------
------------------
Total Preferred Stock 0.000 0.000 0.000 0.000 0.000 Common Stock 814.900 814.900 814.900 814.900 814.900 Capital Surplus 3,073.100 2,624.100 2,242.100 1,929.100 1,650.100 Retained Earnings 17,333.000 15,947.000 14,247.000 15,590.000 11,746.000 Less: Treasury Stock 10,397.000 10,646.000 11,217.000 9,451.000 7,352.000
------------------
------------------
------------------
------------------
------------------
Common Equity 10,824.000 8,740.000 6,087.000 8,883.000 6,859.000 ------------------
------------------
------------------
------------------
------------------
Stockholder's Equity - Parent 10,824.000 8,740.000 6,087.000 8,883.000 6,859.000 Nonredeemable Noncontrolling Int. 40.000 83.000 @NA @NA @NA
------------------
------------------
------------------
------------------
------------------
Stockholder's Equity - Total 10,864.000 8,823.000 @NA @NA @NA------------------
------------------
------------------
------------------
------------------
TOTAL LIABILITIES & EQUITY 64,020.000 60,038.000 67,782.000 56,132.000 50,879.000 COMMON SHARES OUTSTANDING 638.823 624.723 601.527 623.987 645.808
Joy Global, Inc.Financial Statement Analysis
33
Table 3 – KMTUY Balance Sheet
KOMATSU LTD -ADR ANNUAL BALANCE SHEETTICKER: KMTUY ($ MILLIONS)SIC: 3,531.000 GICS: 20106010
Mar11 Mar10 Mar09 Mar08 Mar07ASSETSCash & Equivalents 1,023.591 898.505 915.222 1,021.070 781.805 Net Receivables 6,444.663 4,847.623 3,814.758 5,291.360 4,093.618 Inventories 5,709.349 4,262.538 5,124.818 5,184.410 3,710.966 Prepaid Expenses 52.024 40.904 42.960 44.440 31.042 Other Current Assets 1,762.807 1,134.527 1,246.070 1,195.490 1,075.323
------------------
------------------
------------------
------------------
------------------
Total Current Assets 14,992.434 11,184.097 11,143.828 12,736.770 9,692.754 Gross Plant, Property & Equipment 13,828.373 12,441.645 11,263.545 10,703.490 7,850.144 Accumulated Depreciation 7,703.229 6,795.408 5,955.848 5,792.030 4,558.678
------------------
------------------
------------------
------------------
------------------
Net Plant, Property & Equipment 6,125.144 5,646.237 5,307.697 4,911.460 3,291.466 Investments at Equity 302.590 258.086 194.434 228.840 310.915 Other Investments 2,978.904 2,299.333 1,705.455 1,807.490 1,628.196 Intangibles 1,003.518 751.398 693.455 784.450 286.856 Deferred Charges 0.000 0.000 0.000 0.000 0.000 Other Assets 490.627 925.957 844.616 582.450 416.779
------------------
------------------
------------------
------------------
------------------
TOTAL ASSETS 25,893.217 21,065.107 19,889.484 21,051.461 15,626.966 LIABILITIESLong Term Debt Due In One Year 1,477.205 1,139.312 885.475 1,079.280 614.288 Notes Payable 1,569.976 1,327.290 2,223.101 1,088.900 866.508 Accounts Payable 3,722.591 2,226.065 2,165.404 3,871.040 3,093.771 Taxes Payable 467.819 236.602 109.273 524.530 465.534 Accrued Expenses 966.205 886.548 819.525 916.240 @CFOther Current Liabilities 1,434.614 1,084.678 1,194.061 1,135.330 1,613.967
------------------
------------------
------------------
------------------
------------------
Total Current Liabilities 9,638.410 6,900.495 7,396.839 8,615.320 6,654.068 Long Term Debt 3,507.855 3,838.548 2,950.566 2,352.770 1,477.458 Deferred Taxes 211.988 181.032 167.697 301.730 284.958
Joy Global, Inc.Financial Statement Analysis
34
Investment Tax Credit 0.000 0.000 0.000 0.000 0.000 Other Liabilities 815.928 717.087 805.353 607.990 460.559
------------------
------------------
------------------
------------------
------------------
Liabilities - Total 14,174.181 11,637.162 11,320.455 11,877.810 8,877.043 Redeemable Noncontrolling Int. 0.000 0.000 337.303 302.390 167.576
EQUITYPreferred Stock - Redeemable 0.000 0.000 0.000 0.000 0.000 Preferred Stock - Nonredeemable 0.000 0.000 0.000 0.000 0.000
------------------
------------------
------------------
------------------
------------------
Total Preferred Stock 0.000 0.000 0.000 0.000 0.000 Common Stock 817.711 729.785 685.555 678.700 575.169 Capital Surplus 1,693.048 1,509.903 1,415.070 1,381.700 1,162.331 Retained Earnings 9,043.229 7,101.494 6,484.344 6,839.210 4,874.729 Less: Treasury Stock 423.349 373.709 353.242 28.350 29.882
------------------
------------------
------------------
------------------
------------------
Common Equity 11,130.639 8,967.473 8,231.727 8,871.260 6,582.347 ------------------
------------------
------------------
------------------
------------------
Stockholder's Equity - Parent 11,130.639 8,967.473 8,231.727 8,871.260 6,582.347 Nonredeemable Noncontrolling Int. 588.397 460.473 @NA @NA @NA
------------------
------------------
------------------
------------------
------------------
Stockholder's Equity - Total 11,719.036 9,427.946 @NA @NA @NA------------------
------------------
------------------
------------------
------------------
TOTAL LIABILITIES & EQUITY 25,893.217 21,065.107 19,889.484 21,051.461 15,626.966 COMMON SHARES OUTSTANDING 967.903 968.040 967.824 995.104 993.788
Joy Global, Inc.Financial Statement Analysis
35
Table 4 – JOYG Income Statement
JOY GLOBAL INC ANNUAL INCOME STATEMENTTICKER: JOYG ($ MILLIONS, EXCEPT PER SHARE)
SIC:3,532.00
0
GICS:20106010
Oct10 Oct09 Oct08 Oct07 Oct06Sales 3,524.334 3,598.314 3,418.934 2,547.322 2,401.710 Cost of Goods Sold 2,290.959 2,386.944 2,309.506 1,671.828 1,605.335
-------------------
------------------
------------------
------------------
------------------
Gross Profit 1,233.375 1,211.370 1,109.428 875.494 796.375 Selling, General, &Administrative Expense 480.636 454.522 441.527 358.538 321.831
-------------------
------------------
------------------
------------------
------------------
Operating Income Before Deprec. 752.739 756.848 667.901 516.956 474.544 Depreciation, Depletion, &Amortization 59.749 58.570 71.423 48.806 41.256
-------------------
------------------
------------------
------------------
------------------
Operating Profit 692.990 698.278 596.478 468.150 433.288 Interest Expense 29.964 32.217 34.237 31.909 5.666 Non-Operating Income/Expense 17.308 11.519 15.265 12.090 12.913 Special Items (1.310) 5.060 (50.419) 0.728 9.822
-------------------
------------------
------------------
------------------
------------------
Pretax Income 679.024 682.640 527.087 449.059 450.357 Total Income Taxes 217.525 227.990 153.950 169.275 35.501
-------------------
------------------
------------------
------------------
------------------
Income Before Extraordinary Items& Noncontrolling Interests 461.499 454.650 @NA @NA @NANoncontrolling Interest - Inc Acc 0.000 0.000 0.000 0.000 0.000
-------------------
------------------
------------------
------------------
------------------
Income Before ExtraordinaryItems & Discontinued Operations 461.499 454.650 373.137 279.784 414.856
Joy Global, Inc.Financial Statement Analysis
36
Preferred Dividends 0.000 0.000 0.000 0.000 0.000 -------------------
------------------
------------------
------------------
------------------
Available for Common 461.499 454.650 373.137 279.784 414.856 Savings Due to CommonStock Equivalents 0.000 0.000 0.000 0.000 0.000
-------------------
------------------
------------------
------------------
------------------
Adjusted Available for Common 461.499 454.650 373.137 279.784 414.856 Extraordinary Items 0.000 0.000 0.000 0.000 1.565 Discontinued Operations 0.000 0.000 1.141 0.000 0.000
-------------------
------------------
------------------
------------------
------------------
Adjusted Net Income 461.499 454.650 374.278 279.784 416.421 Income to Company Incl ExtrordinaryItems & Disc Ops 461.499 461.499 462.640 461.499 463.064
Earnings Per Share Basic -Excluding Extra Items & Disc Op 4.470 4.440 3.470 2.540 3.410 Earnings Per Share Basic -Including Extra Items & Disc Op 4.470 4.440 3.480 2.540 3.420 Earnings Per Share Diluted-Excluding Extra Items & Disc Op 4.400 4.410 3.440 2.510 3.370
Earnings Per Share Diluted -Including Extra Items & Disc Op 4.400 4.410 3.450 2.510 3.380 EPS Basic from Operations 4.480 4.410 3.780 2.530 2.450 EPS Diluted from Ops 4.410 4.380 3.760 2.500 2.410 Dividends Per Share 0.700 0.700 0.625 0.600 0.412 Com Shares for Basic EPS 103.196 102.450 107.472 110.354 121.682 Com Shares for Diluted EPS 104.905 103.104 108.425 111.630 123.276
Joy Global, Inc.Financial Statement Analysis
37
Table 5 – CAT Income Statement
CATERPILLAR INC ANNUAL INCOME STATEMENTTICKER: CAT ($ MILLIONS, EXCEPT PER SHARE)
SIC:3,531.00
0
GICS:20106010
Dec10 Dec09 Dec08 Dec07 Dec06Sales 42,588.000 32,396.000 51,324.000 44,958.000 41,517.000 Cost of Goods Sold 28,779.000 22,284.000 37,215.000 30,829.000 27,947.000
-------------------
------------------
------------------
------------------
------------------
Gross Profit 13,809.000 10,112.000 14,109.000 14,129.000 13,570.000 Selling, General, &Administrative Expense 6,153.000 4,360.000 6,127.000 6,279.000 5,936.000
-------------------
------------------
------------------
------------------
------------------
Operating Income Before Deprec. 7,656.000 5,752.000 7,982.000 7,850.000 7,634.000 Depreciation, Depletion, &Amortization 2,278.000 2,315.000 1,968.000 1,797.000 1,602.000
-------------------
------------------
------------------
------------------
------------------
Operating Profit 5,378.000 3,437.000 6,014.000 6,053.000 6,032.000 Interest Expense 1,257.000 1,434.000 1,427.000 1,420.000 1,297.000 Non-Operating Income/Expense (362.000) (718.000) (137.000) 393.000 295.000 Special Items (33.000) (728.000) 60.000 0.000 (88.000)
-------------------
------------------
------------------
------------------
------------------
Pretax Income 3,726.000 557.000 4,510.000 5,026.000 4,942.000 Total Income Taxes 968.000 (270.000) 953.000 1,485.000 1,405.000
-------------------
------------------
------------------
------------------
------------------
Income Before Extraordinary Items& Noncontrolling Interests 2,758.000 827.000 @NA @NA @NANoncontrolling Interest - Inc Acc 58.000 (68.000) @CF 0.000 0.000
-------------------
------------------
------------------
------------------
------------------
Income Before
Joy Global, Inc.Financial Statement Analysis
38
ExtraordinaryItems & Discontinued Operations 2,700.000 895.000 3,557.000 3,541.000 3,537.000 Preferred Dividends 0.000 0.000 0.000 0.000 0.000
-------------------
------------------
------------------
------------------
------------------
Available for Common 2,700.000 895.000 3,557.000 3,541.000 3,537.000 Savings Due to CommonStock Equivalents 0.000 0.000 0.000 0.000 0.000
-------------------
------------------
------------------
------------------
------------------
Adjusted Available for Common 2,700.000 895.000 3,557.000 3,541.000 3,537.000 Extraordinary Items 0.000 0.000 0.000 0.000 0.000 Discontinued Operations 0.000 0.000 0.000 0.000 0.000
-------------------
------------------
------------------
------------------
------------------
Adjusted Net Income 2,700.000 895.000 3,557.000 3,541.000 3,537.000 Income to Company Incl ExtrordinaryItems & Disc Ops 2,758.000 2,758.000 2,758.000 2,758.000 2,758.000
Earnings Per Share Basic -Excluding Extra Items & Disc Op 4.280 1.450 5.830 5.550 5.370 Earnings Per Share Basic -Including Extra Items & Disc Op 4.280 1.450 5.830 5.550 5.370 Earnings Per Share Diluted-Excluding Extra Items & Disc Op 4.150 1.430 5.660 5.370 5.170
Earnings Per Share Diluted -Including Extra Items & Disc Op 4.150 1.430 5.660 5.370 5.170 EPS Basic from Operations 4.450 2.090 5.020 5.550 5.460 EPS Diluted from Ops 4.320 2.070 4.880 5.370 5.260 Dividends Per Share 1.720 1.680 1.560 1.320 1.100 Com Shares for Basic EPS 631.500 615.200 610.500 638.200 658.700 Com Shares for Diluted EPS 650.400 626.000 627.900 659.500 683.800
Joy Global, Inc.Financial Statement Analysis
39
Table 6 – KMTUY Income Statement
KOMATSU LTD -ADR ANNUAL INCOME STATEMENTTICKER: KMTUY ($ MILLIONS, EXCEPT PER SHARE)
SIC:3,531.00
0
GICS:20106010
Mar11 Mar10 Mar09 Mar08 Mar07Sales 22,206.350 15,393.161 20,421.646 22,430.230 16,045.280 Cost of Goods Sold 15,108.397 10,862.795 14,263.171 15,152.990 10,879.678
-------------------
------------------
------------------
------------------
------------------
Gross Profit 7,097.952 4,530.366 6,158.476 7,277.240 5,165.603 Selling, General, &Administrative Expense 3,189.048 2,680.495 3,259.364 3,174.740 2,432.933
-------------------
------------------
------------------
------------------
------------------
Operating Income Before Deprec. 3,908.904 1,849.871 2,899.111 4,102.500 2,732.669 Depreciation, Depletion, &Amortization 1,077.916 981.925 993.475 756.640 616.178
-------------------
------------------
------------------
------------------
------------------
Operating Profit 2,830.988 867.946 1,905.636 3,345.860 2,116.491 Interest Expense 78.012 91.419 147.232 166.990 131.229 Non-Operating Income/Expense (71.856) (60.753) (292.677) 140.380 45.153 Special Items 0.000 0.000 (160.899) (28.700) 0.000
-------------------
------------------
------------------
------------------
------------------
Pretax Income 2,681.120 715.774 1,304.828 3,290.550 2,030.415 Total Income Taxes 779.590 272.731 427.202 1,157.940 675.805
-------------------
------------------
------------------
------------------
------------------
Income Before Extraordinary Items& Noncontrolling Interests 1,901.530 443.043 @NA @NA @NANoncontrolling Interest - Inc Acc 85.241 82.194 81.697 94.350 55.763
Joy Global, Inc.Financial Statement Analysis
40
-------------------
------------------
------------------
------------------
------------------
Income Before ExtraordinaryItems & Discontinued Operations 1,816.289 360.849 795.929 2,038.260 1,298.847 Preferred Dividends 0.000 0.000 0.000 0.000 0.000
-------------------
------------------
------------------
------------------
------------------
Available for Common 1,816.289 360.849 795.929 2,038.260 1,298.847 Savings Due to CommonStock Equivalents 0.000 0.000 0.000 0.000 0.000
-------------------
------------------
------------------
------------------
------------------
Adjusted Available for Common 1,816.289 360.849 795.929 2,038.260 1,298.847 Extraordinary Items 0.000 0.000 0.000 0.000 0.000 Discontinued Operations 0.000 0.000 0.000 49.670 96.390
-------------------
------------------
------------------
------------------
------------------
Adjusted Net Income 1,816.289 360.849 795.929 2,087.930 1,395.237 Income to Company Incl ExtrordinaryItems & Disc Ops 1,901.530 1,901.530 1,901.530 1,951.200 1,997.920
Earnings Per Share Basic -Excluding Extra Items & Disc Op 1.880 0.370 0.808 2.050 1.308 Earnings Per Share Basic -Including Extra Items & Disc Op 1.880 0.370 0.808 2.100 1.405 Earnings Per Share Diluted-Excluding Extra Items & Disc Op 1.880 0.370 0.808 2.050 1.305
Earnings Per Share Diluted -Including Extra Items & Disc Op 1.880 0.370 0.808 2.100 1.403 EPS Basic from Operations 1.880 0.370 0.887 2.068 1.308 EPS Diluted from Ops 1.880 0.370 0.887 2.065 1.305 Dividends Per Share 0.461 0.181 0.416 0.384 0.259 Com Shares for Basic EPS 967.803 968.013 985.584 992.736 993.596 Com Shares for Diluted 968.475 968.463 986.316 994.432 995.388
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EPS
Table 7 – JOYG Statement of Cash Flows
JOY GLOBAL INCTICKER: JOYG ($ MILLIONS)SIC: 3,532.000 GICS: 20106010
Oct10 Oct09 Oct08 Oct07 Oct06OPERATIONSIncome Before Extraordinary Items 461.499 454.650 373.137 279.784 414.856 Depreciation and Amortization 59.749 58.570 71.423 48.806 41.557 Extraordinary Items and 0.000 0.000 0.000 0.000 0.000 Discontinued OperationsDeferred Taxes 8.262 (2.144) (17.486) 101.963 (28.472)Equity in Earnings 0.000 0.000 0.000 0.000 0.000 Sale of Property, Plant, and Equipmentand Sale of Investments 0.000 0.000 0.000 0.000 0.000 Funds from Operations - Other (62.804) (7.506) (46.235) (18.282) (15.671)Funds from Operations - Total @NA @NA @NA @NA @NAWorking Capital Changes - Other - Inc (Dec) @NA @NA @NA @NA @NACash Dividends 72.088 71.596 67.426 66.158 54.426 INVESTMENTSCapital Expenditures 73.474 94.128 84.205 51.194 49.066 Sale of Property, Plant, and Equipment 0.418 1.779 2.184 1.760 11.082 Acquisitions 0.000 11.184 255.574 13.186 117.377 Increase in Investments 0.000 0.000 0.000 0.000 0.000 Sale of Investments 0.000 0.000 0.000 0.000 0.000 FINANCINGCurrent Debt - Changes @CF (7.343) 4.697 (4.791) 4.792 Issuance of Long-Term Debt @CF @CF 160.946 394.874 95.900 Long-Term Debt - Reduction 146.176 18.869 0.000 97.439 @CFPurchase of Common and Preferred Stock 0.000 13.706 307.706 499.673 295.538
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Sale of Common and Preferred Stock 36.419 @CF 18.330 11.936 14.125 Excess Tax Benefit from Stock Options 0.000 @CF 12.011 7.102 20.732 OTHER ACTIVITIESUses of Funds - Other @NA @NA @NA @NA @NASources of Funds - Other @NA @NA @NA @NA @NACash and Equivalents - Changes 343.896 270.110 28.327 71.994 (42.663)Format Code 7.000 7.000 7.000 7.000 7.000
Table 8 – CAT Statement of Cash Flows
CATERPILLAR INCTICKER: CAT ($ MILLIONS)SIC: 3,531.000 GICS: 20106010
Dec10 Dec09 Dec08 Dec07 Dec06OPERATIONSIncome Before Extraordinary Items 2,758.000 827.000 3,557.000 3,541.000 3,537.000 Depreciation and Amortization 2,296.000 2,336.000 1,980.000 1,797.000 1,602.000 Extraordinary Items and 0.000 0.000 0.000 0.000 0.000 Discontinued OperationsDeferred Taxes 0.000 0.000 0.000 0.000 0.000 Equity in Earnings @CF @CF @CF @CF @CFSale of Property, Plant, and Equipmentand Sale of Investments 0.000 0.000 0.000 0.000 0.000 Funds from Operations - Other 469.000 137.000 383.000 199.000 197.000 Funds from Operations - Total @NA @NA @NA @NA @NAWorking Capital Changes - Other - Inc (Dec) @NA @NA @NA @NA @NACash Dividends 1,084.000 1,029.000 953.000 845.000 726.000 INVESTMENTSCapital Expenditures 2,586.000 2,316.000 4,011.000 3,040.000 2,675.000 Sale of Property, Plant, and Equipment 1,469.000 1,242.000 982.000 408.000 572.000 Acquisitions @CF @CF @CF @CF @CF
Increase in Investments 8,715.000 7,456.000 14,370.00
0 14,431.00
0 11,203.00
0
Sale of Investments 9,231.000 9,679.000 11,023.00
0 12,133.00
0 9,700.000 FINANCING
Current Debt - Changes 291.000 (3,884.000
) 2,074.000 (297.000) (136.000)
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Issuance of Long-Term Debt 8,324.000 12,537.000 17,930.00
0 11,039.00
0 11,269.00
0
Long-Term Debt - Reduction 12,461.000 12,933.000 14,439.00
0 10,888.00
0 10,375.00
0 Purchase of Common and Preferred Stock 0.000 0.000 1,800.000 2,405.000 3,208.000 Sale of Common and Preferred Stock 296.000 89.000 135.000 328.000 414.000 Excess Tax Benefit from Stock Options 153.000 21.000 56.000 155.000 169.000 OTHER ACTIVITIESUses of Funds - Other @NA @NA @NA @NA @NASources of Funds - Other @NA @NA @NA @NA @NA
Cash and Equivalents - Changes(1,275.000
) 2,131.000 1,614.000 592.000 (578.000)Format Code 7.000 7.000 7.000 7.000 7.000
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Table 9 – KMTUY Statement of Cash Flows
KOMATSU LTD -ADRTICKER: KMTUY ($ MILLIONS)SIC: 3,531.000 GICS: 20106010
Mar11 Mar10 Mar09 Mar08 Mar07OPERATIONSIncome Before Extraordinary Items 1,901.530 443.043 795.929 2,038.260 1,298.847 Depreciation and Amortization 1,077.916 981.925 993.475 756.640 616.178 Extraordinary Items and 0.000 0.000 0.000 49.670 96.390 Discontinued OperationsDeferred Taxes 81.723 (79.118) (184.020) 150.160 36.729 Equity in Earnings @CF @CF @CF @CF @CFSale of Property, Plant, and Equipmentand Sale of Investments (9.940) 12.817 89.243 1.440 (144.008)Funds from Operations - Other 276.458 70.967 193.141 14.340 115.695 Funds from Operations - Total @NA @NA @NA @NA @NAWorking Capital Changes - Other - Inc (Dec) @NA @NA @NA @NA @NACash Dividends 303.349 270.753 442.455 378.100 193.720 INVESTMENTSCapital Expenditures 1,214.699 993.559 1,471.414 1,175.710 1,041.187 Sale of Property, Plant, and Equipment 115.723 120.559 64.788 194.250 149.373 Acquisitions @CF @CF 2.253 427.170 208.652 Increase in Investments 16.614 51.892 68.535 46.630 57.093 Sale of Investments @CF @CF 7.101 6.010 15.627 FINANCING
Current Debt - Changes 139.663 (1,495.344
) 1,288.779 6.340 190.898 Issuance of Long-Term Debt 875.675 1,673.559 1,306.334 827.910 379.500 Long-Term Debt - Reduction 1,428.651 1,121.419 1,200.283 640.360 731.813
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Purchase of Common and Preferred Stock @CF @CF 330.152 @CF @CFSale of Common and Preferred Stock 2.108 1.419 @CF 6.910 4.381 Excess Tax Benefit from Stock Options 0.000 0.000 0.000 0.000 0.000 OTHER ACTIVITIESUses of Funds - Other @NA @NA @NA @NA @NASources of Funds - Other @NA @NA @NA @NA @NACash and Equivalents - Changes 21.627 (87.462) (115.626) 98.110 188.152 Format Code 7.000 7.000 7.000 7.000 7.000
Table 10 – JOYG Common Size Balance Sheet
JOY GLOBAL INC COMMON SIZE BALANCE SHEETTICKER: JOYG (PERCENTAGE)SIC: 3,532.000 GICS: 20106010
Oct10 Oct09 Oct08 Oct07 Oct06ASSETSCash & Equivalents 24.835 15.680 7.623 8.115 5.182 Net Receivables 20.528 19.301 23.908 26.242 22.079 Inventories 23.293 25.589 30.452 34.070 32.750 Prepaid Expenses 0.000 0.000 0.000 0.000 0.000 Other Current Assets 3.266 4.253 3.748 3.604 2.828
---------- ---------- ---------- ---------- ----------Total Current Assets 71.921 64.822 65.731 72.031 62.839 Gross Plant,Property & Equip 20.905 19.962 19.032 20.457 18.790 Accumulated Depreciation 9.394 8.425 8.103 9.495 8.298
---------- ---------- ---------- ---------- ----------Net Plant,Property & Equip 11.511 11.537 10.929 10.962 10.492 Investments at Equity 0.000 0.000 0.000 0.000 0.000 Other Investments 0.000 0.000 0.000 0.000 0.000 Intangibles 9.273 10.463 12.102 3.734 3.897 Deferred Charges 0.000 0.000 0.000 0.036 3.551 Other Assets 7.295 13.178 11.238 13.236 19.221
---------- ---------- ---------- ---------- ----------TOTAL ASSETS 100.000 100.000 100.000 100.000 100.000 LIABILITIESLong Term Debt Due In One Year 0.010 0.609 0.694 0.011 0.019 Notes Payable 0.037 0.049 0.306 0.000 0.245
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Accounts Payable 8.884 6.873 11.034 9.331 10.242 Taxes Payable 0.000 0.000 0.000 0.000 0.000 Accrued Expenses 10.771 12.585 12.496 10.773 10.651 Other Current Liabilities 11.458 10.691 18.594 15.181 9.549
---------- ---------- ---------- ---------- ----------Total Current Liabilities 31.161 30.808 43.125 35.296 30.705 Long Term Debt 12.068 17.415 20.458 18.561 5.023 Deferred Taxes 0.859 3.543 2.881 0.623 0.637 Investment Tax Credit 0.000 0.000 0.000 0.000 0.000 Other Liabilities 14.640 21.184 13.400 11.607 16.571
---------- ---------- ---------- ---------- ----------TOTAL LIABILITIES 58.728 72.950 79.863 66.088 52.936 Redeemable Noncontrolling Interest 0.000 0.000 0.000 0.000 0.000 EQUITYPreferred Stock - Redeemable 0.000 0.000 0.000 0.000 0.000 Preferred Stock - Nonredeemable 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Total Preferred Stock 0.000 0.000 0.000 0.000 0.000 Common Stock 3.879 4.198 4.764 5.851 6.330 Capital Surplus 30.516 31.348 34.211 40.448 43.371 Retained Earnings 40.878 28.622 22.871 24.861 12.487 Less: Treasury Stock 34.001 37.118 41.709 37.248 15.125
---------- ---------- ---------- ---------- ----------Common Equity 41.272 27.050 20.137 33.912 47.064
---------- ---------- ---------- ---------- ----------STOCKHOLDERS' EQUITY - PARENT 41.272 27.050 20.137 33.912 47.064 Nonredeemable Noncontrolling Interest 0.000 0.000 @NA @NA @NA
---------- ---------- ---------- ---------- ----------STOCKHOLDERS' EQUITY - TOTAL 41.272 27.050 @NA @NA @NATOTAL LIABILITIES & EQUITY 100.000 100.000 100.000 100.000 100.000
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Table 11 – CAT Common Size Balance Sheet
CATERPILLAR INC COMMON SIZE BALANCE SHEETTICKER: CAT (PERCENTAGE)SIC: 3,531.000 GICS: 20106010
Dec10 Dec09 Dec08 Dec07 Dec06ASSETSCash & Equivalents 5.728 8.178 4.112 2.168 1.042 Net Receivables 26.396 23.862 27.391 28.426 29.427 Inventories 14.975 10.593 12.955 12.834 12.483 Prepaid Expenses @CF @CF @CF @CF @CFOther Current Assets 2.588 1.987 2.212 1.960 2.437
---------- ---------- ---------- ---------- ----------Total Current Assets 49.688 44.620 46.669 45.388 45.388 Gross Plant,Property & Equip 38.903 40.343 34.651 34.219 33.959 Accumulated Depreciation 19.317 19.713 16.174 16.410 16.563
---------- ---------- ---------- ---------- ----------Net Plant,Property & Equip 19.586 20.630 18.477 17.810 17.396 Investments at Equity 0.211 0.117 0.097 1.037 1.065 Other Investments 20.662 24.086 24.688 27.031 24.393 Intangibles 5.341 4.554 4.090 4.343 4.503 Deferred Charges 0.000 0.000 0.000 0.000 0.000 Other Assets 4.513 5.993 5.979 4.391 7.254
---------- ---------- ---------- ---------- ----------TOTAL ASSETS 100.000 100.000 100.000 100.000 100.000 LIABILITIESLong Term Debt Due In One Year 6.131 9.496 8.102 9.143 8.768 Notes Payable 6.336 6.801 10.636 9.741 10.132
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Accounts Payable 9.147 4.985 7.121 8.414 8.029 Taxes Payable 0.000 0.000 0.000 @CF 1.130 Accrued Expenses 7.107 6.909 7.912 7.668 7.589 Other Current Liabilities 5.675 3.943 4.689 4.664 2.191
---------- ---------- ---------- ---------- ----------Total Current Liabilities 34.396 32.133 38.460 39.630 37.839 Long Term Debt 31.923 36.389 33.687 31.763 34.749 Deferred Taxes 0.220 0.230 0.192 0.191 @CFInvestment Tax Credit 0.000 0.000 0.000 0.000 0.000 Other Liabilities 15.772 15.758 17.907 12.592 13.931
---------- ---------- ---------- ---------- ----------TOTAL LIABILITIES 82.310 84.510 90.247 84.175 86.519 Redeemable Noncontrolling Interest 0.720 0.794 0.773 0.000 0.000 EQUITYPreferred Stock - Redeemable 0.000 0.000 0.000 0.000 0.000 Preferred Stock - Nonredeemable 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Total Preferred Stock 0.000 0.000 0.000 0.000 0.000 Common Stock 1.273 1.357 1.202 1.452 1.602 Capital Surplus 4.800 4.371 3.308 3.437 3.243 Retained Earnings 27.074 26.562 21.019 27.774 23.086 Less: Treasury Stock 16.240 17.732 16.549 16.837 14.450
---------- ---------- ---------- ---------- ----------Common Equity 16.907 14.557 8.980 15.825 13.481
---------- ---------- ---------- ---------- ----------STOCKHOLDERS' EQUITY - PARENT 16.907 14.557 8.980 15.825 13.481 Nonredeemable Noncontrolling Interest 0.062 0.138 @NA @NA @NA
---------- ---------- ---------- ---------- ----------STOCKHOLDERS' EQUITY - TOTAL 16.970 14.696 @NA @NA @NATOTAL LIABILITIES & EQUITY 100.000 100.000 100.000 100.000 100.000
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Table 12 – KMTUY Common Size Balance Sheet
KOMATSU LTD -ADR COMMON SIZE BALANCE SHEETTICKER: KMTUY (PERCENTAGE)SIC: 3,531.000 GICS: 20106010
Mar11 Mar10 Mar09 Mar08 Mar07ASSETSCash & Equivalents 3.953 4.265 4.602 4.850 5.003 Net Receivables 24.889 23.013 19.180 25.135 26.196 Inventories 22.050 20.235 25.766 24.627 23.747 Prepaid Expenses 0.201 0.194 0.216 0.211 0.199 Other Current Assets 6.808 5.386 6.265 5.679 6.881
---------- ---------- ---------- ---------- ----------Total Current Assets 57.901 53.093 56.029 60.503 62.026 Gross Plant,Property & Equip 53.405 59.063 56.631 50.844 50.235 Accumulated Depreciation 29.750 32.259 29.945 27.514 29.172
---------- ---------- ---------- ---------- ----------Net Plant,Property & Equip 23.655 26.804 26.686 23.331 21.063 Investments at Equity 1.169 1.225 0.978 1.087 1.990 Other Investments 11.505 10.915 8.575 8.586 10.419 Intangibles 3.876 3.567 3.487 3.726 1.836 Deferred Charges 0.000 0.000 0.000 0.000 0.000 Other Assets 1.895 4.396 4.247 2.767 2.667
---------- ---------- ---------- ---------- ----------TOTAL ASSETS 100.000 100.000 100.000 100.000 100.000 LIABILITIESLong Term Debt Due In One Year 5.705 5.409 4.452 5.127 3.931 Notes Payable 6.063 6.301 11.177 5.173 5.545
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Accounts Payable 14.377 10.568 10.887 18.388 19.798 Taxes Payable 1.807 1.123 0.549 2.492 2.979 Accrued Expenses 3.731 4.209 4.120 4.352 @CFOther Current Liabilities 5.541 5.149 6.003 5.393 10.328
---------- ---------- ---------- ---------- ----------Total Current Liabilities 37.224 32.758 37.190 40.925 42.581 Long Term Debt 13.547 18.222 14.835 11.176 9.455 Deferred Taxes 0.819 0.859 0.843 1.433 1.824 Investment Tax Credit 0.000 0.000 0.000 0.000 0.000 Other Liabilities 3.151 3.404 4.049 2.888 2.947
---------- ---------- ---------- ---------- ----------TOTAL LIABILITIES 54.741 55.244 56.917 56.423 56.806 Redeemable Noncontrolling Interest 0.000 0.000 1.696 1.436 1.072 EQUITYPreferred Stock - Redeemable 0.000 0.000 0.000 0.000 0.000 Preferred Stock - Nonredeemable 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Total Preferred Stock 0.000 0.000 0.000 0.000 0.000 Common Stock 3.158 3.464 3.447 3.224 3.681 Capital Surplus 6.539 7.168 7.115 6.563 7.438 Retained Earnings 34.925 33.712 32.602 32.488 31.194 Less: Treasury Stock 1.635 1.774 1.776 0.135 0.191
---------- ---------- ---------- ---------- ----------Common Equity 42.987 42.570 41.387 42.141 42.122
---------- ---------- ---------- ---------- ----------STOCKHOLDERS' EQUITY - PARENT 42.987 42.570 41.387 42.141 42.122 Nonredeemable Noncontrolling Interest 2.272 2.186 @NA @NA @NA
---------- ---------- ---------- ---------- ----------STOCKHOLDERS' EQUITY - TOTAL 45.259 44.756 @NA @NA @NATOTAL LIABILITIES & EQUITY 100.000 100.000 100.000 100.000 100.000
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Table 13 – JOYG Common Size Income Statement
JOY GLOBAL INCCOMMON SIZE INCOME STATEMENT
TICKER: JOYG (PERCENTAGE)SIC: 3,532.000 GICS: 20106010
Oct10 Oct09 Oct08 Oct07 Oct06Sales 100.000 100.000 100.000 100.000 100.000 Cost of Goods Sold 65.004 66.335 67.550 65.631 66.841
---------- ---------- ---------- ---------- ----------Gross Profit 34.996 33.665 32.450 34.369 33.159 Selling, General, &Administrative Expense 13.638 12.632 12.914 14.075 13.400
---------- ---------- ---------- ---------- ----------Operating Income Before Deprec 21.358 21.033 19.535 20.294 19.759 Depreciation, Depletion, &Amortization 1.695 1.628 2.089 1.916 1.718
---------- ---------- ---------- ---------- ----------Operating Profit 19.663 19.406 17.446 18.378 18.041 Interest Expense 0.850 0.895 1.001 1.253 0.236 Non-Operating Income/Expense 0.491 0.320 0.446 0.475 0.538 Special Items (0.037) 0.141 (1.475) 0.029 0.409
---------- ---------- ---------- ---------- ----------Pretax Income 19.267 18.971 15.417 17.629 18.752 Total Income Taxes 6.172 6.336 4.503 6.645 1.478 Income Before ExtraordinaryItems & Noncontrolling Interests 13.095 12.635 @NA @NA @NA
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Noncontrolling Interest - Inc Acc 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Income Before ExtraordinaryItems & Discontinued Operations 13.095 12.635 10.914 10.983 17.273 Preferred Dividends 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Available for Common 13.095 12.635 10.914 10.983 17.273 Savings Due to CommonStock Equivalents 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Adjusted Available for Common 13.095 12.635 10.914 10.983 17.273 Extraordinary Items 0.000 0.000 0.000 0.000 0.065 Discontinued Operations 0.000 0.000 0.033 0.000 0.000
---------- ---------- ---------- ---------- ----------Adjusted Net Income 13.095 12.635 10.947 10.983 17.339 Income to Company incl. ExtraordinaryItems & Disc Ops 13.095 12.635 @NA @NA @NA
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Table 14 – CAT Common Size Income Statement
CATERPILLAR INCCOMMON SIZE INCOME STATEMENT
TICKER: CAT (PERCENTAGE)SIC: 3,531.000 GICS: 20106010
Dec10 Dec09 Dec08 Dec07 Dec06Sales 100.000 100.000 100.000 100.000 100.000 Cost of Goods Sold 67.575 68.786 72.510 68.573 67.315
---------- ---------- ---------- ---------- ----------Gross Profit 32.425 31.214 27.490 31.427 32.685 Selling, General, &Administrative Expense 14.448 13.458 11.938 13.966 14.298
---------- ---------- ---------- ---------- ----------Operating Income Before Deprec 17.977 17.755 15.552 17.461 18.388 Depreciation, Depletion, &Amortization 5.349 7.146 3.834 3.997 3.859
---------- ---------- ---------- ---------- ----------Operating Profit 12.628 10.609 11.718 13.464 14.529 Interest Expense 2.952 4.426 2.780 3.159 3.124 Non-Operating Income/Expense (0.850) (2.216) (0.267) 0.874 0.711 Special Items (0.077) (2.247) 0.117 0.000 (0.212)
---------- ---------- ---------- ---------- ----------Pretax Income 8.749 1.719 8.787 11.179 11.904 Total Income Taxes 2.273 (0.833) 1.857 3.303 3.384 Income Before ExtraordinaryItems & Noncontrolling Interests 6.476 2.553 @NA @NA @NANoncontrolling Interest - Inc Acc 0.136 (0.210) @CF 0.000 0.000
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---------- ---------- ---------- ---------- ----------Income Before ExtraordinaryItems & Discontinued Operations 6.340 2.763 6.930 7.876 8.519 Preferred Dividends 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Available for Common 6.340 2.763 6.930 7.876 8.519 Savings Due to CommonStock Equivalents 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Adjusted Available for Common 6.340 2.763 6.930 7.876 8.519 Extraordinary Items 0.000 0.000 0.000 0.000 0.000 Discontinued Operations 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Adjusted Net Income 6.340 2.763 6.930 7.876 8.519 Income to Company incl. ExtraordinaryItems & Disc Ops 6.476 2.553 @NA @NA @NA
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Table 15 – KMTUY Common Size Income Statement
KOMATSU LTD -ADRCOMMON SIZE INCOME STATEMENT
TICKER: KMTUY (PERCENTAGE)SIC: 3,531.000 GICS: 20106010
Mar11 Mar10 Mar09 Mar08 Mar07Sales 100.000 100.000 100.000 100.000 100.000 Cost of Goods Sold 68.036 70.569 69.843 67.556 67.806
---------- ---------- ---------- ---------- ----------Gross Profit 31.964 29.431 30.157 32.444 32.194 Selling, General, &Administrative Expense 14.361 17.414 15.960 14.154 15.163
---------- ---------- ---------- ---------- ----------Operating Income Before Deprec 17.603 12.017 14.196 18.290 17.031 Depreciation, Depletion, &Amortization 4.854 6.379 4.865 3.373 3.840
---------- ---------- ---------- ---------- ----------Operating Profit 12.749 5.639 9.331 14.917 13.191 Interest Expense 0.351 0.594 0.721 0.744 0.818 Non-Operating Income/Expense (0.324) (0.395) (1.433) 0.626 0.281 Special Items 0.000 0.000 (0.788) (0.128) 0.000
---------- ---------- ---------- ---------- ----------Pretax Income 12.074 4.650 6.389 14.670 12.654 Total Income Taxes 3.511 1.772 2.092 5.162 4.212 Income Before ExtraordinaryItems & Noncontrolling Interests 8.563 2.878 @NA @NA @NANoncontrolling Interest - Inc Acc 0.384 0.534 0.400 0.421 0.348
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---------- ---------- ---------- ---------- ----------Income Before ExtraordinaryItems & Discontinued Operations 8.179 2.344 3.897 9.087 8.095 Preferred Dividends 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Available for Common 8.179 2.344 3.897 9.087 8.095 Savings Due to CommonStock Equivalents 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ---------- ----------Adjusted Available for Common 8.179 2.344 3.897 9.087 8.095 Extraordinary Items 0.000 0.000 0.000 0.000 0.000 Discontinued Operations 0.000 0.000 0.000 0.221 0.601
---------- ---------- ---------- ---------- ----------Adjusted Net Income 8.179 2.344 3.897 9.309 8.696 Income to Company incl. ExtraordinaryItems & Disc Ops 8.563 2.878 @NA @NA @NA