You have been asked by the CFO to analyze a prospective customer who has requested sales on credit. Use the financial statements for TechnoTCL, Inc Download financial statements for TechnoTCL, Inc  to calculate the attached ratios and complete the assignment.  Prepare a brief presentation (maximum of 4 slides) to the CFO including the calculations and 2-3 sentences interpreting each ratio.  Slide One: Calculate and interpret the following debt ratios: debt ratio, debt-equity ratio, and times interest earned for all three years. Slide Two:  Analyze one of the debt ratios including why the ratio is used and what the actual results for TechnoTCL might indicate. Slide Three: Calculate and interpret the following profitability ratios: operating profit margin, net profit margin, return on assets, and return on equity for all three years. Slide Four: Analyze one of the profitability ratios including why the ratio is used and what the actual results for TechnoTCL might indicate. echnoTCL, Inc.($ 000's)12/31/2021 12/31/2022 12/31/2023Current AssetsCash And Cash Equivalents 9,157 10,607 8,719Short Term Investments 6,966 8,897 270Net Receivables 6,693 7,021 7,140Inventory 2,722 2,944 3,126Other Current Assets 31 43 2,042Total Current Assets 25,569 29,512 21,297Long Term Investments 1,949 2,039 2,407Property Plant and Equipment 16,590 17,237 17,587Goodwill 14,429 14,741 14,806Intangible Assets 13,432 13,835 15,823Other Assets 635 910 5,122Total Assets 72,604 78,274 77,042Current LiabilitiesAccounts Payable 6,157 6,724 7,211Short/Current Long Term Debt 4,400 4,017 3,951Other Current Liabilities 3,870 4,112 6,601Total Current Liabilities 14,427 14,853 17,763Long Term Debt 30,052 33,793 28,293Other Liabilities 11,102 14,522 12,611Total Liabilities 55,581 63,168 58,667Stockholders' EquityTotal Stockholder Equity 17,023 15,106 18,37512/31/2021 12/31/2022 12/31/2023RevenueTotal Revenue 56,519 57,902 51,728Cost of Revenue 25,400 25,340 23,502Gross Profit 31,119 32,562 28,226Operating ExpensesSelling General and Administrative 21,226 20,706 19,184Operating Income or Loss 9,893 11,856 9,042Income from Continuing OperationsOther Income/Expenses Net - -1,508 -1,507 -1,148Interest Expense 1,207 1,288 1,220Income Before Tax 7,178 9,061 6,674Income Tax Expense 1,957 4,130 2,696Net Income 5,221 4,931 3,978

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
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You have been asked by the CFO to analyze a prospective customer who has requested sales on credit. Use the financial statements for TechnoTCL, Inc Download financial statements for TechnoTCL, Inc  to calculate the attached ratios and complete the assignment. 

Prepare a brief presentation (maximum of 4 slides) to the CFO including the calculations and 2-3 sentences interpreting each ratio. 

  • Slide One: Calculate and interpret the following debt ratios: debt ratio, debt-equity ratio, and times interest earned for all three years.
  • Slide Two:  Analyze one of the debt ratios including why the ratio is used and what the actual results for TechnoTCL might indicate.
  • Slide Three: Calculate and interpret the following profitability ratios: operating profit margin, net profit margin, return on assets, and return on equity for all three years.
  • Slide Four: Analyze one of the profitability ratios including why the ratio is used and what the actual results for TechnoTCL might indicate.
echnoTCL, Inc.
($ 000's)
12/31/2021 12/31/2022 12/31/2023
Current Assets
Cash And Cash Equivalents 9,157 10,607 8,719
Short Term Investments 6,966 8,897 270
Net Receivables 6,693 7,021 7,140
Inventory 2,722 2,944 3,126
Other Current Assets 31 43 2,042
Total Current Assets 25,569 29,512 21,297
Long Term Investments 1,949 2,039 2,407
Property Plant and Equipment 16,590 17,237 17,587
Goodwill 14,429 14,741 14,806
Intangible Assets 13,432 13,835 15,823
Other Assets 635 910 5,122
Total Assets 72,604 78,274 77,042
Current Liabilities
Accounts Payable 6,157 6,724 7,211
Short/Current Long Term Debt 4,400 4,017 3,951
Other Current Liabilities 3,870 4,112 6,601
Total Current Liabilities 14,427 14,853 17,763
Long Term Debt 30,052 33,793 28,293
Other Liabilities 11,102 14,522 12,611
Total Liabilities 55,581 63,168 58,667
Stockholders' Equity
Total Stockholder Equity 17,023 15,106 18,375
12/31/2021 12/31/2022 12/31/2023
Revenue
Total Revenue 56,519 57,902 51,728
Cost of Revenue 25,400 25,340 23,502
Gross Profit 31,119 32,562 28,226
Operating Expenses
Selling General and Administrative 21,226 20,706 19,184
Operating Income or Loss 9,893 11,856 9,042
Income from Continuing Operations
Other Income/Expenses Net - -1,508 -1,507 -1,148
Interest Expense 1,207 1,288 1,220
Income Before Tax 7,178 9,061 6,674
Income Tax Expense 1,957 4,130 2,696
Net Income 5,221 4,931 3,978
 
 
 
 
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