*Our Business topic is Snapchat Inc*

topic is snapchat inc

Ftage IV: Financing a Business Overview: Now that we have discussed the primary disciplines of a business (marketing, operations, human resource management, and management leadership/motivation), the last step to understand is finance. Finance is a crucial part of operating a business as it provides an overview of a company's health. Consider a business like an automobile: although all the parts are working properly, without a dashboard to tell you the amount of fuel remaining, the speed, potential problems (indicator lights), and where you are (GPS), you would have a difficult time managing a trip. Finance is the "dashboard" for a business. In this stage, the goal is to become more familiar with the elementary finance terms and practices of a business. You will develop and be able to explain the basic and primary Financial Ratios. Please include the following in your paper: Class and Section Assignment name Team member names (worth 5 points) Include the following ratios for the last three years of financial stotements. What kind of trend do they show in each? What does that tell you obout the compony? How do they compare with their industry (you'II need to look up industry standards)? What can they do to improve their ratios? Numbers can be found in financial statements in annual reports found on their website. Show three years of the company's ratio. Show the industry standard. Chart if yourd nike. Discuss what you can tell about the company from the trend and comparison. LQUIDITY RATIOS or Short-Term SOlvenCY - SHOW THE FIRM'S ABUITY TO MEEI SHORT TERM DEBT OBUGATIONS: 1. CURRENT RATIO-Measures the liquidity of a company, Current ratio of 1.5 or ereater is wsually sufficient to meet short term needs. current assets current liabilies = 2. quiCK RATIO-Measures how well a company can pay its debts without selling inventory. Greater than 1 indicates a company can meet its obligations. (Current assets - Inventories) ACTIVITY RATIOS or Asset MangGement-SHOWS HOW EFFECTIVELY A FIRM IS USING IIS ASSETS (SOLVENCY): 3. ACCOUNTS RECEIVABLE TURNOVER - Used to quantify a firm's effectiveness in extending credit as well as collecting debts. Receivables turnover ratio measures how efficiently a firm uses its assets. Averageaccountsreceivables=Sales 4. INVENTORY TURNOVEB - The number of times inventory is sold over a certain time. The higher, the better! AverageInventory=COGS PROFITABIUTY - SHOWS THE EFFECTIVENSS OF THE COMPANY BY THE RETURNS FROM INVESTMENTS AND SALES: 5. PROFIT MARGIN - It measures how much out of every dollar of sales a company actually keeps in eamings. Net income 6. GROSS PROFI MARGIN - Tells us the profit a company makes on its cost of sales (Sales - Cost of Goods Sold) Sales = 7. ROA - Return on Assets - A useful indicator of how profitable a company is relative to its total assets. TotalAssets=Netincome 8. ROE-Return on equity - The principal summary measure of company performance. Netincome Stockholders' equity DEBT RATIOS - HOW WEUL YOUR ASSETS COVER YOUR LABILITIES 9. DEBT TO EQUITY - It indicates what proportion of equity and debt the company is using to finance its assets. A higher debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. TotalStockholdersEquity=TotalLiabilities 10. DEBT RATIO - Indicates what proportion of the company's assets are being financed through debt. TotalAssetsTotalLiabilities= Ftage IV: Financing a Business Overview: Now that we have discussed the primary disciplines of a business (marketing, operations, human resource management, and management leadership/motivation), the last step to understand is finance. Finance is a crucial part of operating a business as it provides an overview of a company's health. Consider a business like an automobile: although all the parts are working properly, without a dashboard to tell you the amount of fuel remaining, the speed, potential problems (indicator lights), and where you are (GPS), you would have a difficult time managing a trip. Finance is the "dashboard" for a business. In this stage, the goal is to become more familiar with the elementary finance terms and practices of a business. You will develop and be able to explain the basic and primary Financial Ratios. Please include the following in your paper: Class and Section Assignment name Team member names (worth 5 points) Include the following ratios for the last three years of financial stotements. What kind of trend do they show in each? What does that tell you obout the compony? How do they compare with their industry (you'II need to look up industry standards)? What can they do to improve their ratios? Numbers can be found in financial statements in annual reports found on their website. Show three years of the company's ratio. Show the industry standard. Chart if yourd nike. Discuss what you can tell about the company from the trend and comparison. LQUIDITY RATIOS or Short-Term SOlvenCY - SHOW THE FIRM'S ABUITY TO MEEI SHORT TERM DEBT OBUGATIONS: 1. CURRENT RATIO-Measures the liquidity of a company, Current ratio of 1.5 or ereater is wsually sufficient to meet short term needs. current assets current liabilies = 2. quiCK RATIO-Measures how well a company can pay its debts without selling inventory. Greater than 1 indicates a company can meet its obligations. (Current assets - Inventories) ACTIVITY RATIOS or Asset MangGement-SHOWS HOW EFFECTIVELY A FIRM IS USING IIS ASSETS (SOLVENCY): 3. ACCOUNTS RECEIVABLE TURNOVER - Used to quantify a firm's effectiveness in extending credit as well as collecting debts. Receivables turnover ratio measures how efficiently a firm uses its assets. Averageaccountsreceivables=Sales 4. INVENTORY TURNOVEB - The number of times inventory is sold over a certain time. The higher, the better! AverageInventory=COGS PROFITABIUTY - SHOWS THE EFFECTIVENSS OF THE COMPANY BY THE RETURNS FROM INVESTMENTS AND SALES: 5. PROFIT MARGIN - It measures how much out of every dollar of sales a company actually keeps in eamings. Net income 6. GROSS PROFI MARGIN - Tells us the profit a company makes on its cost of sales (Sales - Cost of Goods Sold) Sales = 7. ROA - Return on Assets - A useful indicator of how profitable a company is relative to its total assets. TotalAssets=Netincome 8. ROE-Return on equity - The principal summary measure of company performance. Netincome Stockholders' equity DEBT RATIOS - HOW WEUL YOUR ASSETS COVER YOUR LABILITIES 9. DEBT TO EQUITY - It indicates what proportion of equity and debt the company is using to finance its assets. A higher debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. TotalStockholdersEquity=TotalLiabilities 10. DEBT RATIO - Indicates what proportion of the company's assets are being financed through debt. TotalAssetsTotalLiabilities=