Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of the following company. Financial Ratios Fiscal Year Ended Previous Fiscal Year Formula Dec 31, 2019 Dec 31, 2018 Liquidity Analysis Ratios: Current Ratio or Working Capital Ratio Curent Assets / Current Liabilities 1.46 1.36 (Current Assets Inventory- Prepayments) / Current Liabilities Quick Ratio 0.96 0.86 Solvency Ratio Total Assets / Total Liabilities 1.46 1.44 Financial Leverage Ratios Debt Ratio Total Debt/Total Assets 0.47 0.48 Total Debt/Total Stockholders Debt-to-Equity Ratio 1.48 1.57 Equity Eamings Before Interest and Taxes (BIT)/ Interest Charges Interest Coverage 2.38 2.61 Total Assets / Total Asset to Equity Ratio 3.16 3.28 Stockholders' Equity Profitability Ratios Sales Cost of Goods Sold or 19 76 Cost of Service / Sales Net Profit / Sales Gross Profit Margin 19.43 Net Profit Margin 11.34 11.42 Return on Assets Net Income/ Total Assets 2.67 2.9 Net Income / Total Stockholders' Equity Return on Equity 8.46 9.5 Priceltarnings Ratio Price Per Share / Earnings Per Common Share 27.5 22.24 Other Relevant Information None
Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of the following company. Financial Ratios Fiscal Year Ended Previous Fiscal Year Formula Dec 31, 2019 Dec 31, 2018 Liquidity Analysis Ratios: Current Ratio or Working Capital Ratio Curent Assets / Current Liabilities 1.46 1.36 (Current Assets Inventory- Prepayments) / Current Liabilities Quick Ratio 0.96 0.86 Solvency Ratio Total Assets / Total Liabilities 1.46 1.44 Financial Leverage Ratios Debt Ratio Total Debt/Total Assets 0.47 0.48 Total Debt/Total Stockholders Debt-to-Equity Ratio 1.48 1.57 Equity Eamings Before Interest and Taxes (BIT)/ Interest Charges Interest Coverage 2.38 2.61 Total Assets / Total Asset to Equity Ratio 3.16 3.28 Stockholders' Equity Profitability Ratios Sales Cost of Goods Sold or 19 76 Cost of Service / Sales Net Profit / Sales Gross Profit Margin 19.43 Net Profit Margin 11.34 11.42 Return on Assets Net Income/ Total Assets 2.67 2.9 Net Income / Total Stockholders' Equity Return on Equity 8.46 9.5 Priceltarnings Ratio Price Per Share / Earnings Per Common Share 27.5 22.24 Other Relevant Information None
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of the following company.
Transcribed Image Text:Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of the
following company.
Financial Ratios
Fiscal Year Ended
Previous Fiscal Year
Formula
Dec 31, 2019
Dec 31, 2018
Liquidity Analysis Ratios:
Current Assets / Current
Liabilities
Current Ratio or
1.46
1.36
Working Capital Ratio
(Current Assets - Inventory -
Prepayments) / Current
Liabilities
Quick Ratio
0.96
0.86
Solvency Ratio
Total Assets / Total Liabilities 1.46
1.44
Financial Leverage Ratios
Debt Ratio
Total Debt/Total Assets
0.47
0.48
Total Debt/Total Stockholders
Equity
Debt-to-Equity Ratio
1.48
1.57
Earnings Before Interest and
Taxes (EBIT) / Interest
Charges
Total Assets / Total
Stockholders' Equity
Interest Coverage
2.38
2.61
Asset to Equity Ratio
3.16
3.28
Profitability Ratios
Gross Profit Margin
Sales - Cost of Goods Sold or
Cost of Service / Sales
19.76
19.43
Net Profit Margin
Net Profit / Sales
11.34
11.42
Net Income / Total Assets
2.67
2.9
Return on Assets
Net Income / Total
Stockholders' Equity
Price Per Share / Earnings
Per Common Share
Return on Equity
8.46
9.5
Pricellarnings Ratio
27.5
22.24
Other Relevant Information
None
3/3
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