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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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

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-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
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
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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