LIQUIDITY ANALYSIS Liquidity ratios measure a company's ability to meet current obligations such as paying accounts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
LIQUIDITY ANALYSIS Liquidity ratios measure a company's ability to meet current obligations such as paying accounts payable or short-term debts. Liquidity ratios may be the most important ratios when evaluating the financial health of a corporation. This is so because they reveal a company's ability to pay short-term obligations as they become due. Below are some of the common liquidity ratios used by those interested in an organization. Ratios Current ratio Quick (acid-test) ratio Current cash debt ratio Current Year dvda Prior Year 2 Years Prior PROFITABILITY ANALYSIS Profitability is arguably the most important concern for businesses. As a result, profitability ratios are extremely important to both owners and creditors. Profitability ratios measure how well management is using the resources of the company to earn a profit. This includes the ability of management to control expenses while increasing revenues. Below are some of the common profitability ratios used by those interested in an organization. Ratios Profit margin on sales Return on assets Return on common equity Earnings per share Price-earnings ratio Payout ratio Current Year Prior Year YOYONOMETER 2 Years Prior Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense/(benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Other Cash used in investing activities Financing activities: Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Proceeds from/(Repayments of) commercial paper, net Other Cash used in financing activities Decrease in cash, cash equivalents and restricted cash $ September 24, 2022 35,929 99,803 11,104 9,038 895 111 (1,823) 1,484 (7,520) (6,499) 9,448 478 5,632 122,151 (76,923) 29,917 37,446 (10,708) (306) (1,780) (22,354) (6,223) (14,841) (89,402) 5,465 (9,543) 3,955 (160) (110,749) (10,952) $ Years ended September 25, 2021 39,789 94,680 11,284 7,906 (4,774) (147) (10,125) (2,642) (3,903) (8,042) 12,326 1,676 5,799 104,038 (109,558) 59,023 47,460 (11,085) (33) (352) (14,545) (6,556) (14,467) (85,971) 20,393 (8,750) 1,022 976 (93,353) (3,860) $ September 26, 2020 50,224 57,411 11,056 6,829 (215) (97) 6,917 (127) 1,553 (9,588) (4,062) 2,081 8,916 80,674 (114,938) 69,918 50,473 (7,309) (1,524) (909) (4,289) (3,634) (14,081) (72,358) 16,091 (12,629) (963) 754 (86,820) (10,435) LIQUIDITY ANALYSIS Liquidity ratios measure a company's ability to meet current obligations such as paying accounts payable or short-term debts. Liquidity ratios may be the most important ratios when evaluating the financial health of a corporation. This is so because they reveal a company's ability to pay short-term obligations as they become due. Below are some of the common liquidity ratios used by those interested in an organization. Ratios Current ratio Quick (acid-test) ratio Current cash debt ratio Current Year dvda Prior Year 2 Years Prior PROFITABILITY ANALYSIS Profitability is arguably the most important concern for businesses. As a result, profitability ratios are extremely important to both owners and creditors. Profitability ratios measure how well management is using the resources of the company to earn a profit. This includes the ability of management to control expenses while increasing revenues. Below are some of the common profitability ratios used by those interested in an organization. Ratios Profit margin on sales Return on assets Return on common equity Earnings per share Price-earnings ratio Payout ratio Current Year Prior Year YOYONOMETER 2 Years Prior Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense/(benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Other Cash used in investing activities Financing activities: Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Proceeds from/(Repayments of) commercial paper, net Other Cash used in financing activities Decrease in cash, cash equivalents and restricted cash $ September 24, 2022 35,929 99,803 11,104 9,038 895 111 (1,823) 1,484 (7,520) (6,499) 9,448 478 5,632 122,151 (76,923) 29,917 37,446 (10,708) (306) (1,780) (22,354) (6,223) (14,841) (89,402) 5,465 (9,543) 3,955 (160) (110,749) (10,952) $ Years ended September 25, 2021 39,789 94,680 11,284 7,906 (4,774) (147) (10,125) (2,642) (3,903) (8,042) 12,326 1,676 5,799 104,038 (109,558) 59,023 47,460 (11,085) (33) (352) (14,545) (6,556) (14,467) (85,971) 20,393 (8,750) 1,022 976 (93,353) (3,860) $ September 26, 2020 50,224 57,411 11,056 6,829 (215) (97) 6,917 (127) 1,553 (9,588) (4,062) 2,081 8,916 80,674 (114,938) 69,918 50,473 (7,309) (1,524) (909) (4,289) (3,634) (14,081) (72,358) 16,091 (12,629) (963) 754 (86,820) (10,435)
Expert Answer:
Answer rating: 100% (QA)
To calculate the changes in cash cash equivalents and restricted c... View the full answer
Related Book For
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these finance questions
-
Carter Company is considering three investment opportunities with the following payback periods: Use the decision rule for payback to rank the projects from most desirable to least desirable, all...
-
Write a program that asks the user to input the (x,y) coordinates of 2 points, and then calculates and shows the distance between those two points. The program should execute according to the...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
All organizations incur non value added costs. Eliminating or reducing non value added costs is the responsibility of managers. Using the Activity Based Management approach and focusing on the...
-
Refer to the data given in Problem 16.15 on page 682 that represent the amount of oil (in billions of barrels) held in the U.S. strategic reserve from 1981 through 2009 (stored in Strategic). a. Fit...
-
Find a minimum cut set and its capacity for the network: In Fig. 496. Verify that its capacity equals the maximum flow. 11, 8 13, 6 2 4, 3 20, 5 5, 2 6. s(1 10, 4 3,3 4 5. 7,4 3.
-
compare and contrast the theories presented, including Maslows hierarchy of needs, Herzbergs two-factor theory, equity theory, reinforcement theory, and expectancy theory;
-
Express Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing pouches and small, standardized delivery boxes (which provides a 20%...
-
Jackson County Senior Services is a nonprofit organization devoted to providing essentlal services to seniors who live In thelr own homes within the Jackson County area. Three services are provided...
-
What process has the intent to increase claims accuracy through MAC data analysis of specific areas
-
Find the electric field at the center of a solid hemisphere of radius a and uniform charge density p. Do not rewrite p. Leave your answer in terms of p. (2r) (r sin ) drdo. Hint: dV: = If in doubt,...
-
The amount of income tax, t, an individual owes is defined by piecewise function t(i) and is based on the individual's income, where i is taxable income in dollars. 0.10/ t(i)= 755+0.12(i-11000)...
-
discuss the potential of geothermal energy as a renewable resource, highlighting its advantages, such as baseload capacity, and the technical and geological challenges associated with its exploration...
-
March 25, 1970 Mr. R. W. Seaver Executive Vice President Grove Press, Inc. 214 Mercer Street New York, New York 10012 Dear Mr. Seaver: Several people have called to our attention your advertisement...
-
What is the impact of urbanization on hydrological cycles, and how can civil engineering address the resulting environmental issues ?
-
Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $36,000 and a remaining useful life of four years, at which time its salvage value will be...
-
Which provision could best be justified as encouraging small business? a. Ordinary loss allowed on $ 1244 stuck. b. Percentage depletion. c. Domestic production activates deductions. d. Interest...
-
Milford Corporation pays its employees on the 15th of each month. Accrued, but unpaid, salaries on December 31, year 1, totaled $210,000. Salaries earned by Milfords employees from January 1 through...
-
Assume a stores Clothing Department has a lower contribution margin ratio but a higher responsibility margin ratio than its Sporting Goods Department. If $15,000 in advertising is expected to...
-
The financial statements of Home Depot, Inc., appear in Appendix A of this text. These statements contain information describing the details of the companys stockholders equity. a. What is the par...
-
The Unilever 2002 annual review stated: Total Shareholder Return (TSR) is a concept used to compare the performance of different companies stocks and shares over time. It combines share price...
-
On the Internet find the 2010 Transparency International Corruption Perception Index and determine the ranking of these countries. a. United States b. Japan c. Chad d. Iceland e. Denmark
-
In the 2010 Wells Report, what was the third most common way of detecting fraud? a. Tips b. Internal audits c. External audits d. By accident e. Reports from the police
Study smarter with the SolutionInn App