Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need some help explaining why the seven finacial analysis say about the company analyssi e as well as what the financial ratio or analysis should
need some help explaining why the seven finacial analysis say about the company analyssi e as well as what the financial ratio or analysis should tell you about a company.
Horizontal analysis Dollar change = year of analysis amount - base year amount Dollar change =24,44224,460 DC=(18) Percent change Percent change =( dollar change / base year amount )100 PC=(18/24460)100 PC=.000735100 PC=.74% Working capital Working capital = current assets- liabilities WC=58534861 WC=992 Current ratio Current ratio = (current assets/ current liabilities) CR=5853/4861 CR=1.2 Quickratio=(cash+shortterminvestments+accountsreceivable/currentliabilities)QR=(1712+424+300/2053)QR=2436/2053QR=1.18=1.9 Debit to equity ratio Debt to equity ratio =( total liabilities/ total stockholder equity ) DER=(4861/4082)DER=1.19=1.2 Profit margin Profit margin = (net income / sales) PM=(1177/24442)PM=.048=.05 Horizontal analysis Dollar change = year of analysis amount - base year amount Dollar change =24,44224,460 DC=(18) Percent change Percent change =( dollar change / base year amount )100 PC=(18/24460)100 PC=.000735100 PC=.74% Working capital Working capital = current assets- liabilities WC=58534861 WC=992 Current ratio Current ratio = (current assets/ current liabilities) CR=5853/4861 CR=1.2 Quickratio=(cash+shortterminvestments+accountsreceivable/currentliabilities)QR=(1712+424+300/2053)QR=2436/2053QR=1.18=1.9 Debit to equity ratio Debt to equity ratio =( total liabilities/ total stockholder equity ) DER=(4861/4082)DER=1.19=1.2 Profit margin Profit margin = (net income / sales) PM=(1177/24442)PM=.048=.05
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started