THE PRICE IS RIGHT
The data in this case come from the financial reports of Priceline.com*
|
PRICELINE.COM INCORPORATED |
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|
December 31, |
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|
(In thousands) |
2008 |
2007 |
2006 |
|
Total current assets |
$623,839 |
$613,000 |
$503,089 |
|
Total assets |
1,343,977 |
1,350,856 |
1,105,648 |
|
Total current liabilities |
546,652 |
694,843 |
100,672 |
|
Total liabilities |
613,595 |
754,713 |
721,136 |
|
Minority interest |
— |
17,036 |
22,486 |
|
Accumulated deficit |
913,033 |
1,106,506 |
1,262,033 |
|
Stockholders’ Equity |
730,382 |
579,107 |
348,556 |
|
PRICELINE.COM INCORPORATED |
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|
Year Ended December 31, |
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|
(In thousands) |
2008 |
2007 |
2006 |
2005 |
|
Total revenues |
$1,884,806 |
$1,469,469 |
$1,123,103 |
$962,660 |
|
Gross profit |
955,971 |
639,412 |
401,099 |
267,863 |
|
Operating income |
289,474 |
137,935 |
61,986 |
35,884 |
|
Net income |
193,473 |
157,082 |
74,466 |
192,729 |
|
Per diluted common share |
3.98 |
3.42 |
1.68 |
4.21 |
|
PRICELINE.COM INCORPORATED |
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|
Year Ended December 31, |
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|
(In thousands) |
2008 |
2007 |
2006 |
2005 |
|
Net cash provided by operating activities |
$315,553 |
$56,015 |
$112,085 |
$62,642 |
|
Net cash (used in) provided by investing activities |
151,905 |
221,499 |
48,991 |
75,777 |
|
Net cash (used in) provided by financing activities |
168,848 |
19,945 |
177,123 |
5,492 |
|
Cash and cash equivalents, end of period |
364,550 |
385,359 |
423,577 |
80,341 |
|
PRICELINE.COM INCORPORATED SELECTED CONSOLIDATED STATEMENTS |
|
|
Accumulated Deficit |
In Thousands |
|
12/31/2008 |
$913,033 |
|
12/31/2007 |
1,106,506 |
|
12/31/2006 |
1,262,033 |
|
12/31/2005 |
1,334,572 |
|
1/1/2005 |
1,525,447 |
Required
a. 1. Compute the current ratio for 2008, 2007, and 2006. Comment.
2. Compute the debt ratio for 2008, 2007, and 2006. Comment.
3. Total revenues—Prepare a horizontal common-size—use 2005 as the base. Comment.
4. Gross profit—Prepare a horizontal common-size—use 2005 as the base. Comment.
5. Net income—Prepare a horizontal common-size—use 2005 as the base. Comment.
6. Net cash provided by operating activities—Prepare a horizontal common-size—use 2005 as the base. Comment.
7. Compute the operating cash flow/total debt for 2008, 2007, and 2006. Comment.
8. Accumulated deficit—(2006–2008). Comment on the trend.
b. Give an overall comment.