Need help with the why or why not and discussing the ratios in reasoning for yes is a good investment.
Current Prior Year Year Income Statement: Cost of Goods Sold/Revenue .7289 7142 Gross Profit/Revenue 2711 2858 Operating Expenses/Revenue 1369 1503 Research & Development Expense/Revenue 0444 0462 Earnings before Taxes/ Revenue 1090 1061 Income Tax Expense/ Revenue 0462 0333 Net Income/Revenue 0634 0726 %Growth in Revenue = Current YearRevenue - PreviousYearRevenue +%25.62 +%11.61 PreviousReverie "Growth in Profits= +%%29.07 +%41.81 Current YearEarningsBefore Taxes - Previous Year EarningsBefore Taxes Previous Year EamingsBefore Taxes Balance Sheet: Current Assets/Total Assets .7174 7560 Long-Term Investments/Total Assets .2289 2439 Fixed Assets/Total Assets .1858 1772 Current Liabilities/Total Assets 4423 4577 Total Liabilities/Total Assets 8387 8544 Stockholders' Equity/Total Assets .1610 1453 % Growth of Assets = Current Year TotalAssets - Previous Year TotalAssets +6.56% +14% Previous Year TotalAssets Statement of Cash Flows (just write down amounts]: Operating 1,820.3 2,199.8 Investing 8,154.4 -1,644.3 Financing 876.4 4,286.5 Increase (Decrease) in Cash -5,430.9 4,999.1 Beginning Cash Balance 9,334.9 4,335.8 Ending Cash Balance 3,904.0 9,334.9 Statement of Stockholders' Equity (just write down amounts): Beginning Retained Earnings 2,368.4 2,159.1 Dividends (if any 106. -770.4 Net Income (Net Loss) 2,369.4 2,159.2 Other Items 194.2 362.1 Ending Retained Earnings 27,533.0 25,301.3 Profitability Ratios: Profit Margin = Earnings Before Taxes/Revenue 1089 1060 Return on Assets = Earnings BeforeTaxesfor Current Year 0599 0509 (CurrentYear TotalAssets + Previous YearTotalAssets) / 2 Return on Stockholders' Equity = 3904 .3919 Earnings Before Taxesfor Current Year CurrentYear Equity + Previous YearEquity) / 2Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities 1.6155 1.6518 Quick Ratio = (Cash + Marketable Securities + Receivables)/Current 1.3618 1.4682 Liabilities Solvency Ratios: Debt to Total Assets = Total Liabilities/Total Assets 8387 8544 Times Interest Earned = (Net Income + Interest Exp + Tax Exp)/Interest 4.4025 4.4799 Expense Report of the Independent Auditors: Do the auditors believe that the financial statements are presented fairly? List any problems they found. The auditors do believe that the financial statements are presented fairly. Through the research of reports of independent auditors, it is understood that not much error is found. Overall, the presentation of structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation was evaluated. This information concludes, John Deere & Co. has good internal controls and follow PCAOB regulations well. Other Questions: Do you believe this company is a good investment? Why or why not? Make sure you interpret and discuss all ratios in your answer. Yes
