Please help me evaluate these financial ratios to identify any trends or issues and potential reasons for them. Could Covid have played a role? Please help me interpret the ratios in Group C from an investors view point from period 12/31/19 & 6/30/20
Please help me evaluate these financial ratios to identify any trends or issues and potential reasons for them. Could Covid have played a role? Please help me interpret the ratios in Group C from an investors view point from period 12/31/19 & 6/30/20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me evaluate these financial ratios to identify any trends or issues and potential reasons for them. Could Covid have played a role?
Please help me interpret the ratios in Group C from an investors view point from period 12/31/19 & 6/30/20

Transcribed Image Text:Group C-6/30/20
Ø Profit margin= Net Income/ Sales
Net Income=
350,000,000
Sales=
Profit margin=
10,295,000,000
0.03
Ø Return on equity= Net Income/ Total Equity
Net Income
350,000,000
Total Equity=
Return on equity=
60,065,000,000
0.01
Ø EPS= Net Income/ Shares Outstanding
Net Income=
350,000,000
Shares Outstanding=
EPS=
1,950,000,000
0.18
Ø Price-earnings ratio= Price Per Share/ Earnings Per Share
Price Per Share=
49.3
Earnings Per Share=
Price-earnings ratio=
0.18
273.89
Ø Debt-equity ratio= Total Debt/ Total Equity
Total Debt=
112,671,000,000
Total Equity=
60,065,000,000
Debt-equity ratio=
1.88

Transcribed Image Text:Group C-12/31/19
Ø Profit margin= Net Income/ Sales
Net Income
113,000,000
Sales=
13,335,000,000
Profit margin=
0.00847
Ø Return on equity= Net Income/ Total Equity
Net Income=
113,000,000
Total Equity=
Return on equity=
75,722,000,000
0.00149
Ø EPS= Net Income/ Shares Outstanding
Net Income=
113,000,000
Shares Outstanding=
EPS=
2,026,000,000
0.06
Ø Price-earnings ratio= Price Per Share/ Earnings Per Share
Price Per Share=
82.04
Earnings Per Share=
Price-earnings ratio=
0.18
455.78
Ø Debt-equity ratio= Total Debt/ Total Equity
Total Debt=
103,041,000,000
Total Equity=
75,722,000,000
Debt-equity ratio=
1.36
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