In preparation for your report in Project Two, you will need to calculate the financial ratios needed to determine your chosen businesss current financial health Once youve calculated these ratios, the results will be used to analyze the businesss current financial position and help them make decisions about how to improve or maintain their financial health Pay particular attention to working capital management If liquidity is an issue, consider how the company will meet its short term obligations Prompt Using the Project Two Financial Formulas Spreadsheet and the balance sheet, income statement, and cash flow statement from Mergent Online for your chosen company, calculate the financial ratios for the most recent fiscal quarter Then, compare those ratios with the same ratios for the same fiscal quarter from one year prior in Mergent Online, and analyze your results Specifically, you must address the following rubric criteria Financial Calculations Calculate accurate financial ratios to assess the businesss current financial health Specifically, calculate the following ratios Working capital Current ratio Debt ratio Earnings per share Price earnings ratio Total asset turnover ratio Financial leverage Net profit margin Return on assets Return on equity Fiscal Quarter Comparison Using Mergent Online, summarize the differences between the results from your financial calculations of the most recent fiscal quarter and the results of the same financial calculations of the same fiscal quarter from a year before for your chosen business For example, if the most recent fiscal quarter available is the 3rd quarter in 2020, then you will compare those results to the same financial calculations from the 3rd quarter in 2019 Comparison Analysis Explain what the results of your calculations and your comparison indicate about the businesss current financial health, providing examples to support your explanation You might consider the following questions Do the results indicate the business is financially healthy or financially unhealthy Which results indicate this What might be the cause(s) of the businesss financial success or failure Is more information needed to determine the businesss financial health If so, which pieces of information might still be needed Short Term Financing Explain how potential short term financing sources could help the business raise needed funds to improve its financial health Base your response on the businesss current financial information The Business I chose is disney, I dont know how to link anything so I screencapped from excel ACCOUNTING CURRENT RATIO (Current Assets Current Liabilities) Current Assets Current Liabilities DIV 0 FINANCIAL LEVERAGE (Total Assets Shareholder's Equity) Current Assets Current Liabilities 0 DEBT RATIO (Total Debt Total Assets) Total Debt Total Assets DIV 0 EARNINGS PER SHARE (Net Income Weighted Average Common Shares Outstanding) Net Income EARNINGS PER SHARE (Net Income Weighted Average Common Shares Outstanding) Net Income Shares Outstanding DIV 0 PRICE EARNINGS RATIO (Share Price (end of quarter EPS) Stock Price EPS DIV 0 COUNTING FINANCIAL RATIOS TOTAL ASSET TURNOVER RATIO (Total Revenue Total Assets) Total Revenue Total Assets DIV 0 Equity) Total Assets Shareholder's Equity DIV 0 NET PROFIT MARGIN (Net Income Total Revenue) Net Income Total Revenue DIV 0 ing) RETURN ON ASSETS (Net Income Total Assets) Net Income RETURN ON ASSETS (Net Income Total Assets) Net Income Total Assets DIV 0 RETURN ON EQUITY (Net Income Preferred Dividends Shareholder's Equity) NI Pref Div Shareholder's Equity DIV 0 ACCOUNTING CURRENT RATIO (Current Assets Current Liabilities) Current Assets Current Liabilities DIV 0 FINANCIAL LEVERAGE (Total Assets Shareholder's Equity) Current Assets Current Liabilities 0 DEBT RATIO (Total Debt Total Assets) Total Debt Total Assets DIV 0 EARNINGS PER SHARE (Net Income Weighted Average Common Shares Outstanding) Net Income EARNINGS PER SHARE (Net Income Weighted Average Common Shares Outstanding) Net Income Shares Outstanding DIV 0 PRICE EARNINGS RATIO (Share Price (end of quarter EPS) Stock Price EPS DIV 0 COUNTING FINANCIAL RATIOS TOTAL ASSET TURNOVER RATIO (Total Revenue Total Assets) Total Revenue Total Assets DIV 0 Equity) Total Assets Shareholder's Equity DIV 0 NET PROFIT MARGIN (Net Income Total Revenue) Net Income Total Revenue DIV 0 ing) RETURN ON ASSETS (Net Income Total Assets) Net Income RETURN ON ASSETS (Net Income Total Assets) Net Income Total Assets DIV 0 RETURN ON EQUITY (Net Income Preferred Dividends Shareholder's Equity) NI Pref Div Shareholder's Equity DIV 0

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 21, 2024

In preparation for your report in Project Two, you will need to calculate the financial ratios needed to determine your chosen businesss current financial health.

In preparation for your report in Project Two, you will need to calculate the financial ratios needed to determine your chosen businesss current financial health. Once youve calculated these ratios, the results will be used to analyze the businesss current financial position and help them make decisions about how to improve or maintain their financial health. Pay particular attention to working capital management. If liquidity is an issue, consider how the company will meet its short-term obligations.

Prompt

Using the Project Two Financial Formulas Spreadsheet and the balance sheet, income statement, and cash flow statement from Mergent Online for your chosen company, calculate the financial ratios for the most recent fiscal quarter. Then, compare those ratios with the same ratios for the same fiscal quarter from one year prior in Mergent Online, and analyze your results.

Specifically, you must address the following rubric criteria:

Financial Calculations: Calculate accurate financial ratios to assess the businesss current financial health. Specifically, calculate the following ratios:
- Working capital
- Current ratio
- Debt ratio
- Earnings per share
- Price/earnings ratio
- Total asset turnover ratio
- Financial leverage
- Net profit margin
- Return on assets
- Return on equity

Fiscal Quarter Comparison: Using Mergent Online, summarize the differences between the results from your financial calculations of the most recent fiscal quarter and the results of the same financial calculations of the same fiscal quarter from a year before for your chosen business.
- For example, if the most recent fiscal quarter available is the 3rd quarter in 2020, then you will compare those results to the same financial calculations from the 3rd quarter in 2019.

Comparison Analysis: Explain what the results of your calculations and your comparison indicate about the businesss current financial health, providing examples to support your explanation. You might consider the following questions:
- Do the results indicate the business is financially healthy or financially unhealthy? Which results indicate this?
- What might be the cause(s) of the businesss financial success or failure?
- Is more information needed to determine the businesss financial health? If so, which pieces of information might still be needed?

Short-Term Financing: Explain how potential short-term financing sources could help the business raise needed funds to improve its financial health. Base your response on the businesss current financial information.

The Business I chose is disney, I dont know how to link anything so I screencapped from excel:

image text in transcribed

ACCOUNTING & CURRENT RATIO (Current Assets / Current Liabilities) Current Assets Current Liabilities #DIV/0! FINANCIAL LEVERAGE (Total Assets / Shareholder's Equity) Current Assets Current Liabilities 0 DEBT RATIO (Total Debt / Total Assets) Total Debt Total Assets #DIV/0! EARNINGS PER SHARE (Net Income / Weighted Average Common Shares Outstanding) Net Income EARNINGS PER SHARE (Net Income / Weighted Average Common Shares Outstanding) Net Income Shares Outstanding #DIV/0! PRICE EARNINGS RATIO (Share Price (end of quarter / EPS) Stock Price EPS #DIV/0! COUNTING & FINANCIAL RATIOS TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets) Total Revenue Total Assets #DIV/0! - Equity) Total Assets Shareholder's Equity #DIV/0! NET PROFIT MARGIN (Net Income / Total Revenue) Net Income Total Revenue #DIV/0! ing) RETURN ON ASSETS (Net Income / Total Assets) Net Income RETURN ON ASSETS (Net Income / Total Assets) Net Income Total Assets #DIV/0! RETURN ON EQUITY (Net Income - Preferred Dividends / Shareholder's Equity) NI - Pref. Div. Shareholder's Equity #DIV/0! ACCOUNTING & CURRENT RATIO (Current Assets / Current Liabilities) Current Assets Current Liabilities #DIV/0! FINANCIAL LEVERAGE (Total Assets / Shareholder's Equity) Current Assets Current Liabilities 0 DEBT RATIO (Total Debt / Total Assets) Total Debt Total Assets #DIV/0! EARNINGS PER SHARE (Net Income / Weighted Average Common Shares Outstanding) Net Income EARNINGS PER SHARE (Net Income / Weighted Average Common Shares Outstanding) Net Income Shares Outstanding #DIV/0! PRICE EARNINGS RATIO (Share Price (end of quarter / EPS) Stock Price EPS #DIV/0! COUNTING & FINANCIAL RATIOS TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets) Total Revenue Total Assets #DIV/0! - Equity) Total Assets Shareholder's Equity #DIV/0! NET PROFIT MARGIN (Net Income / Total Revenue) Net Income Total Revenue #DIV/0! ing) RETURN ON ASSETS (Net Income / Total Assets) Net Income RETURN ON ASSETS (Net Income / Total Assets) Net Income Total Assets #DIV/0! RETURN ON EQUITY (Net Income - Preferred Dividends / Shareholder's Equity) NI - Pref. Div. Shareholder's Equity #DIV/0