Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of thefollowing company.Financial RatiosFiscal Year EndedPrevious Fiscal YearFormulaDec 31, 2019Dec 31, 2018Liquidity Analysis Ratios:Current Assets / CurrentLiabilitiesCurrent Ratio or1.461.36Working Capital Ratio(Current Assets - Inventory -Prepayments) / CurrentLiabilitiesQuick Ratio0.960.86Solvency RatioTotal Assets / Total Liabilities 1.461.44Financial Leverage RatiosDebt RatioTotal Debt/Total Assets0.470.48Total Debt/Total StockholdersEquityDebt-to-Equity Ratio1.481.57Earnings Before Interest andTaxes (EBIT) / InterestChargesTotal Assets / TotalStockholders' EquityInterest Coverage2.382.61Asset to Equity Ratio3.163.28Profitability RatiosGross Profit MarginSales - Cost of Goods Sold orCost of Service / Sales19.7619.43Net Profit MarginNet Profit / Sales11.3411.42Net Income / Total Assets2.672.9Return on AssetsNet Income / TotalStockholders' EquityPrice Per Share / EarningsPer Common ShareReturn on Equity8.469.5Pricellarnings Ratio27.522.24Other Relevant InformationNone3/3

Ratio analysis is commonly used tool of analysis of financial statement. Before any investment in…

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 Current 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 148 Equity Debt-to-lquity Ratio 1.57 Eamings Before iInterest and Taxes (EBIT) /Interest Chargés Interest Coverage 2.38 2.61 Total Assets / Total Stockholders' Equity Asset to Equity Ratio 3.16 3.28 Profitability Ratios Sales Cost of Goods Sold or Cost of Service / Sales Net Profit/ Sales Gross Profit Margin 19.76 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 Roturn on Equity 8.46 9.5 Pricellarnings 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 Current 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 148 Equity Debt-to-lquity Ratio 1.57 Eamings Before iInterest and Taxes (EBIT) /Interest Chargés Interest Coverage 2.38 2.61 Total Assets / Total Stockholders' Equity Asset to Equity Ratio 3.16 3.28 Profitability Ratios Sales Cost of Goods Sold or Cost of Service / Sales Net Profit/ Sales Gross Profit Margin 19.76 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 Roturn on Equity 8.46 9.5 Pricellarnings Ratio Price Per Share / Earnings Per Common Share 27.5 22.24 Other Relevant Information None

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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