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Please show your work. Liquidity Performance Analysis 1. Do a Solvency Analysis. Include trends in Current Ratio (CR), Quick Ratios (QR), Net Working Capital (NWC),
Please show your work.
Liquidity Performance Analysis
1. Do a Solvency Analysis.
Include trends in Current Ratio (CR), Quick Ratios (QR), Net Working Capital (NWC), and Working Capital (WC).
2. Do a Z-score for the current year.
Discuss what trends in the ratios over each of the 2 years reveals about the firm's solvency risk over time.
Analyze the trends in the debt ratios.
Income Statement (in thousands) | 2017 | 2016 |
Total Revenue | 543,660 | 282,354 |
Cost of Revenue | 448,467 | 246,109 |
Gross Profit | 95,193 | 36,245 |
Selling & Administrative Exp. | 41,515 | 37,652 |
Depreciaiton Expense | 66,221 | 64,343 |
Total Operating Expense | 107,736 | 101,995 |
Operating Income or Loss | (12,543) | (65,750) |
Interest & other expenses | 60,126 | 31,447 |
Earnings before Tax | (72,669) | (97,197) |
Tax | (4,987) | (26,286) |
Net Income | (67,682) | (70,911) |
Dividends Paid | - | 2,438 |
Addition to Ret. Earnings | (67,682) | (73,349) |
Balance Sheet | 2017 | 2016 |
Cash & Equivalents | 17,513 | 4,074 |
Net Accounts Receivables | 99,573 | 62,005 |
Inventory | 22,230 | 15,169 |
Other Current Assets | 7,921 | 9,466 |
Total Current Assets | 147,237 | 90,714 |
Net Property, Plant & Equip. | 259,039 | 273,210 |
Goodwill & Intangible Assets | 157,301 | 201,430 |
Other Assets | 15,282 | 10,740 |
Total Assets | 578,859 | 576,094 |
Current Liabilities | ||
Accounts Payable | 29,643 | 18,823 |
Short-term Debt | 241,509 | 244,534 |
Other Current Liabilities | 15,268 | 12,417 |
Total Current Liabilities | 286,420 | 275,774 |
Long-term Debt | 5,081 | 12,134 |
Total Liabilities | 291,501 | 287,908 |
Equity | ||
Retained Earnings | (94,081) | (26,399) |
Common Stock | 381,439 | 314,585 |
Total Equity | 287,358 | 288,186 |
Total Liabs. & Equity | 578,859 | 576,094 |
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