Fundamentals Of Financial Management
14th Edition
ISBN: 9781305629080
Author: Eugene F. Brigham, Joel F. Houston
Publisher: South-western College Pub (edition 14)
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 4, Problem 1TCL
Conducting a Financial Ratio Analysis on HP INC.
Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions.
In Chapter 3, we looked at Dunkin' Brands' financial statements. In this chapter, we will use financial Internet websites (specifically, www.morningstar.com and www.google.com/finance) to analyze HP Inc., a computer hardware company. Once on either website, you simply enter HP Inc.'s ticker symbol (HPQ) to obtain the financial information needed.
The text mentions that financial statement analysis has two major components: a trend analysis, where we evaluate changes in key ratios over time, and a freer analysis, where we compare financial ratios with firms that are in the same industry and/or line of business. We will do both of these types of analysis in this problem.
Through the Morningstar website, you can find the firm's financials (Income Statement,
On the Google Finance site, you can find the firm’s financial statements for the four most recent years or the five most recent quarters and key financial data for related companies for the most recent year or quarter. We will use the related companies' annual data to conduct the firm's peer analysis. Notice that when you go to the "Related Companies" screen, you can "add or remove columns." Click on that phrase, and you can check which peer data items you'd like to show on tire computer screen. Also, once you have chosen the data, you can click on a term, and the companies will be ranked in either ascending or descending order for the specific term selected.
1. Looking at Morningstar's Financial Health ratios, what has happened to HP’s liquidity position over the past 10 years?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
QUESTION 1
Using the search engine, Google or other
search online tools, explain what is SAP FICO?
QUESTION 2
Explain what is SAP 4/HANA Finance from
SAP and list the features available.
QUESTION 3
List the SAP Financial Accounting competitor
that are available in market?
Indicate whether each of the following companies is primarily a service, merchandies, or manufacturing business. If you are unfamiliar with the company, you may use the internet to locate the company's home page or use the finance web site of Yahoo.com
Use the internet to research one manufacturing, one retail (or merchandising), and one service business. For each business, describe the following:Your answer:A. the primary purpose of the entityB. the types of activities that accountants would record (hint: what is the source of the business’ funding, and what costs might the business have?)C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making process
Chapter 4 Solutions
Fundamentals Of Financial Management
Ch. 4 - Financial ratio analysis is conducted by three...Ch. 4 - Prob. 2QCh. 4 - Over the past year, M.D. Ryngaert Co. had an...Ch. 4 - Profit margins and turnover ratios vary from one...Ch. 4 - How does inflation distort ratio analysis...Ch. 4 - Prob. 6QCh. 4 - Give some examples that illustrate how (a)...Ch. 4 - Why is it sometimes misleading to compare a...Ch. 4 - Suppose you were comparing a discount merchandiser...Ch. 4 - Prob. 10Q
Ch. 4 - Differentiate between ROE and ROIC.Ch. 4 - Prob. 12QCh. 4 - DAYS SALES OUTSTANDING Baker Brothers has a DSO of...Ch. 4 - DEBT TO CAPITAL RATIO Bartley Barstools has a...Ch. 4 - DuPONT ANALYSIS Doublewide Dealers has an ROA of...Ch. 4 - MARKET/BOOK RATIO Jaster Jets has 10 billion in...Ch. 4 - PRICE/EARNINGS RATIO A company has an EPS of 2.00,...Ch. 4 - DuPONT AND ROE A firm has a profit margin of 2%...Ch. 4 - Prob. 7PCh. 4 - DuPONT AND NET INCOME Ebersoll Mining has 6...Ch. 4 - BEP, ROE, AND ROIC Duval Manufacturing recently...Ch. 4 - M/B AND SHARE PRICE You are given the following...Ch. 4 - RATIO CALCULATIONS Assume the following...Ch. 4 - RATIO CALCULATIONS Graser Trucking has 12 billion...Ch. 4 - TIE AND ROIC RATIOS The H.R. Pickett Corp. has...Ch. 4 - Prob. 14PCh. 4 - RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has...Ch. 4 - Prob. 16PCh. 4 - CONCEPTUAL: RETURN ON EQUITY Which of the...Ch. 4 - TIE RATIO AEI Incorporated has 5 billion in...Ch. 4 - CURRENT RATIO The Petry Company has 1312,500 in...Ch. 4 - DSO AND ACCOUNTS RECEIVABLE Harrelson Inc....Ch. 4 - P/E AND STOCK PRICE Fontaine Inc. recently...Ch. 4 - BALANCE SHEET ANALYSIS Complete the balance sheet...Ch. 4 - RATIO ANALYSIS Data for Barry Computer Co. and its...Ch. 4 - DUPONT ANALYSIS A firm has been experiencing low...Ch. 4 - RATIO ANALYSIS The Corrigan Corporations 2014 and...Ch. 4 - Prob. 26ICCh. 4 - Conducting a Financial Ratio Analysis on HP INC....Ch. 4 - Conducting a Financial Ratio Analysis on HP INC....Ch. 4 - Prob. 3TCLCh. 4 - Conducting a Financial Ratio Analysis on HP INC....Ch. 4 - Conducting a Financial Ratio Analysis on HP INC....Ch. 4 - Conducting a Financial Ratio Analysis on HP INC....Ch. 4 - Conducting a Financial Ratio Analysis on HP INC....Ch. 4 - Conducting a Financial Ratio Analysis on HP INC....
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Use the internet to research one manufacturing, one retail (or merchandising), and one service business. For each business, describe the following: A. the primary purpose of the entity B. the types of activities that accountants would record (hint: what is the source of the business funding, and what costs might the business have?) C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making processarrow_forwardStudy the QuickBooks and explain how it retrieve, process, and analyze the company's financial data.arrow_forwardWhat is an estimate in QuickBooks Online? Select an answer: An estimate is a document that outlines a customer's purchase history. An estimate is a document that shows a customer's payment history. An estimate is a document that outlines the expenses a business expects to incur in the future. An estimate is a document that outlines the products or services a business plans to provide to a customer.arrow_forward
- Nicole’s Getaway Spa (NGS) continues to grow and develop. Nicole is now evaluating a computerized accounting system and needs your help in understanding how source documents informaccounting processes. She also needs some help reconciling NGS’s bank account.Required:1. For each source document shown below, prepare the appropriate journal entry or indicate thatno journal entry is required.a. Purchase order dated October 13 for massage chairs costing $765 and oil suppliescosting $240.arrow_forwardplease use the data to answer the questions.arrow_forwardHello accounting tutors. Can you help me to answer this?. kindly see the attached image below or this link >> https://drive.google.com/file/d/1D4KNMJHHVMxVKdYvbABzQLTSijz2ZU9m/viewarrow_forward
- Your friends were excited to hear you have chosen accounting for a career. They have several practical questions regarding money and interest (time value of money). Please assist your friends by answering their respective questions. For each question: A. Estimate without using a table, calculator, etc. B. Document the "step-by-step" detail showing them how you solved the question. NOTE: To solve use one of the following: • EXCEL Include all the detail steps for whichever tool you choose. For example, if using EXCEL show all formulas (copy so reader could duplicate your work). If using a business calculator, in detail in proper order show numbers and buttons you input to obtain your answer. C. Provide a one to three sentence written explanation to your friend explaining the basic time value of money concept(s) impacting the solution. Friend #1 – Car Loan – What will by my monthly payment if I purchase a used car for $8,500? The dealer has offered to finance the purchase (car loan) over…arrow_forwardYour friends were excited to hear you have chosen accounting for a career. They have several practical questions regarding money and interest (time value of money). Please assist your friends by answering their respective questions. For each question: A. Estimate without using a table, calculator, etc. B. Document the "step-by-step" detail showing them how you solved the question. NOTE: To solve use one of the following: • EXCEL Include all the detail steps for whichever tool you choose. For example, if using EXCEL show all formulas (copy so reader could duplicate your work). If using a business calculator, in detail in proper order show numbers and buttons you input to obtain your answer. C. Provide a one to three sentence written explanation to your friend explaining the basic time value of money concept(s) impacting the solution. Friend #3 – Home Mortgage Payment – I found my dream house in St. Paul but I am not sure I can afford it? I have the $15,000 for the down payment but it is…arrow_forwardplease dear expert need answer for all requirements with calculation, explanation , formulation with steps for better understanding answer in text not image please show calculation how you get the numbers please double underline answer all download image to see clearly 1. classified multiple-step income statement that would used by the business owner 2. prepare a multiple-step income statement that would be used by external users 3. prepare a single-step income statement that would be provided to decision makers outside the company 4. analysis componentarrow_forward
- select a “start-up” company in an industry of your choice and provide a brief summary description of the start-up company you chose and the goods or services it provides. 1. As a start-up company, identify three Credit Risks the company currently faces today or could face in the future. Explain in detail why these risks are a threat to the company. 2. What advice would you give to the CEO of the company to prevent or minimize these credit risks?arrow_forwardSelect an organization (or make one up) that markets to other businesses. Discuss how online shopping has changed in the business-to-business market using an example. references and link at the end, please.arrow_forwardStudying AIS helps students understand business processes from an accounting perspective. Which of the following activities would commonly be associated with the financing process? Selling goods and services on credit Issuing equity securities Making payments to vendors Hiring employees to work in the finance departmentarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781285867977Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Fundamentals of Financial Management, Concise Edi...FinanceISBN:9781305635937Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781285867977
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Fundamentals of Financial Management, Concise Edi...
Finance
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Topic 6 - Financial statement analysis; Author: drdavebond;https://www.youtube.com/watch?v=uUnP5qkbQ20;License: Standard Youtube License