Mindtapv2.0 Finance, 1 Term (6 Months) Printed Access Card For Brigham/houston's Fundamentals Of Financial Management, 15th (mindtap Course List)
15th Edition
ISBN: 9780357114575
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 4, Problem 5TCL
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 peer 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 tire specific term selected.
5. From the Google Finance site, look at HP's liquidity position (as measured by its current ratio). How does this ratio compare with those of its peers?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Exploring a Corporation's Financial Statements Use Yahoo Finance to complete this assignment. Please note that website
information changes over time, and these changes may limit your ability to answer some of these questions. Using
financial websites such as finance.yahoo.com and money.msn.com, you can access a wealth of financial information for
companies such as Tesla, Inc. By entering the company's ticker symbol, TSLA, you will be able to access a great deal of
useful information, including a summary of what Tesla does (Profile), a chart of its recent stock price (Summary), EPS
estimates (Analysts), recent news stories (Summary), and a list of key financial data and ratios (Statistics). In researching
a company's operating performance, a good place to start is the recent stock price performance. From an interactive
chart, you can obtain a chart of the company's stock price performance and compare it to the overall market (as
measured by the S&P 500 index). As you will see, Tesla has…
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?
Please help me. Thanks
Chapter 4 Solutions
Mindtapv2.0 Finance, 1 Term (6 Months) Printed Access Card For Brigham/houston's Fundamentals Of Financial Management, 15th (mindtap Course List)
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 Baxley Brothers has a DSO...Ch. 4 - DEBT TO CAPITAL RATIO Kayes Kitchenware has a...Ch. 4 - DuPONT ANALYSIS Hendersons Hardware has an ROA of...Ch. 4 - MARKET/BOOK AND EV/EBITDA RATIOS Edelman Engines...Ch. 4 - PRICE/EARNINGS RATIO A company has an EPS of 2.40,...Ch. 4 - DuPONT AND ROE A firm has a profit margin of 3%...Ch. 4 - Prob. 7PCh. 4 - DuPONT AND NET INCOME Precious Metal Mining has 17...Ch. 4 - BEP, ROE, AND ROIC Broward Manufacturing recently...Ch. 4 - M/B,SHARE PRICE, AND EV/EBITDA You are given the...Ch. 4 - RATIO CALCULATIONS Assume the following...Ch. 4 - Prob. 12PCh. 4 - TIE AND ROIC RATIOS The W.C. Pruett Corp. has...Ch. 4 - RETURN ON EQUITY Pacific Packagings ROE last year...Ch. 4 - RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has...Ch. 4 - RETURN ON EQUITY Commonwealth Construction (CC)...Ch. 4 - CONCEPTUAL: RETURN ON EQUITY Which of the...Ch. 4 - TIE RATIO MPI Incorporated has 6 billion in...Ch. 4 - CURRENT RATIO The Stewart Company has 2,392,500 in...Ch. 4 - DSO AND ACCOUNTS RECEIVABLE Ingraham Inc....Ch. 4 - Prob. 21PCh. 4 - BALANCE SHEET ANALYSIS Complete the balance sheet...Ch. 4 - RATIO ANALYSIS Data for Barry Computer Co. and its...Ch. 4 - Income Statement for Year Ended December 31, 2018...Ch. 4 - RATIO ANALYSIS The Corrigan Corporation's 2017 and...Ch. 4 - FINANCIAL STATEMENTS AND TAXES Part I of this...Ch. 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_forwardFollow the instructions. Typewritten for an upvote. No upvote for handwritten. PLEASE SKIP IF YOU HAVE ALREADY DONE THIS. Thank youarrow_forwardAs an accountant, your new client Michael Sue's he's assistance in setting up his books for his business. To do this successfully, you start by showing him how you perform a transaction analysis based on the accounting equation assets equals liabilities plus owners equity. You explain to Michael how to show increases and decreases in assets liabilities and owners equity accounts using that analysis template. To help Michael understand the transaction analysis you reconcile each side of the equation by balancing out each column at the end of the transaction. complete by using the accounts cash, accounts receivable, supplies, equipment, accounts payable, notes payable, Suze capital, Suze drawing, service revenue, rent expense, salary expense, utilities expense, and advertising expense. Please record the transactions listed in the image.arrow_forward
- One of these companies is LinkedIn (the social network), one is Panera (the food and beverage company), and one is Caterpillar (the manufacturing company). Which is which? Give reasons for why you think so.arrow_forwardIdentify summary information about Netflix, Inc. company. This information includes basic descriptions of the company's location, activities, industry, financial health, and financial performance. Go to the Yahoo! Finance website, type in Netflix, Inc., and then use the links (such as Financials) to locate the information necessary to answer the following questions with regard to December 31, 2019. Your answer is partially correct. What is the company's net income? Over what period was this measured? Net income of $ thousand during the year ended December 31, 2019arrow_forwardanalyze a campany's liquidity and solvency by using simple financial ratios. here you will answer questions relayed to saturn sales comapny ltd. analyze the both financial statements and answer the following question.arrow_forward
- Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Computations Working capital $3,095,000 – $900,000 Current ratio $3,095,000 ÷ $900,000 Quick ratio $1,866,000 ÷ $900,000 Accounts receivable turnover $8,280,000 ÷ [($714,000 + $740,000) ÷ 2] Number of days' sales in receivables [($714,000 + $740,000) ÷ 2] ÷ ($8,280,000 ÷ 365) Inventory turnover $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 2] Number of days' sales in inventory…arrow_forwardMastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Computations Working capital $3,095,000 – $860,000 Current ratio $3,095,000 ÷ $860,000 Quick ratio $1,866,000 ÷ $860,000 Accounts receivable turnover $8,250,000 ÷ [($714,000 + $740,000) ÷ 2] Number of days' sales in receivables [($714,000 + $740,000) ÷ 2] ÷ ($8,250,000 ÷ 365) Inventory turnover $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 2] Number of days' sales in inventory…arrow_forwardSolar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales. The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020. SOLAR SOLUTIONS Adjusted Trial Balance 12/31/2020 2020 2019 Account Title Adjusted Trial Balance Post-Closing Trial Balance Debit Credit Debit Credit Cash $ 122,200 55,000 125,600 Accounts Receivable 35,000 Prepaid Insurance 5,000 6,000 |Inventory Office Equipment Machinery & Tools Accumulated Depreciation Accounts Payable Salaries Payable Sales Tax Payable Note Payable-Long Term Common Stock, $10 par 46,000 15,600 63,000 47,000 59,000 21,000 21,000 16,000 11,200 16,800 2,600 2,700 2,000 4,000 31,000 22,100 240,000 160,000 Retained Earnings 28,600 28,600 Dividends 10,000 Sales Revenue Cost of Goods Sold Rent Expense Salaries Expense 235,000 127,600 20,000 36,000 Insurance…arrow_forward
- Help me with required D,E,F,G only The following information applies to the questions displayed below.] You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex CompanyComparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 940,000 $ 1,180,000 Marketable securities 0 300,000 Accounts receivable, net 2,620,000 1,720,000 Inventory 3,580,000 2,300,000 Prepaid expenses 250,000 190,000 Total current assets 7,390,000 5,690,000 Plant and equipment, net 9,480,000 9,030,000 Total assets $ 16,870,000 $ 14,720,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 3,990,000 $…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_forwardPlease follow the following steps to conduct the financial analysis of Pharmamax: 1. Enter the attached financial statements into a New Excel and make sure that the numbers have been entered correctly so that you may upload it after you have completed the entire assignment. 2. Write an introduction that gives a brief outline of the Palestinian pharmaceutical sector. Include critical information regarding the industry's market size, competitive landscape, export- import dynamics, and regulatory frameworks, 3. Construct a cash flow statement for Pharmamax using the attached financial statements. This needs to he done using both the direct and indirect methods. 4. Analyse the Pharmamax attached financial statements, including the cash flow statement, using the following tools: a) Financial ratios(all the ratios covered in class) of pharmamax and those of the Palestinian pharmaceutical company of your choice. b) Vertical common-size analysis: to understand the relative proportions of…arrow_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