Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prompt: In this milestone, you will submit a draft of a portion of the analysis step (Part II), Section C: Key Ratios. You will calculate

Prompt: In this milestone, you will submit a draft of a portion of the analysis step (Part II), Section C: Key Ratios. You will calculate the ratios for the company

selected in Milestone One and show your calculations for each indicator in an appendix.

Specifically, you must calculate and explain profitability, liquidity, debt,

operating performance, cash flow, and investment valuation.

Specifically, the following critical elements must be addressed:

II. Analysis. Use this section to present your findings, based on quantitative and qualitative analysis of the financial statements. Include a copy of the

financial statements and any ratios or analysis in an appendix as support for your text. In particular, this section should cover:

c) Key Ratios. Use this section to discuss key performance indicators (ratios). Be sure to show your calculations for each indicator in an appendix.

Specifically, you must look at:

1. Profitability: Accurately present and explain the significance of the profit margin, return on assets, return on equity, and return on capital

ratios for this company. In other words, what are the ratio values for this company, and what do they suggest for informing decisions to

buy or sell company shares or change management procedures?

2. Liquidity: Accurately present and explain the significance of the current, quick, and cash ratios for this company. In other words, what are

the ratio values for this company, and what do they suggest for informing decisions to buy or sell company shares or change

management procedures?

3. Debt: Accurately present and explain the significance of debt, debt-equity, and interest coverage ratios for this company. In other words,

what are the ratio values for the company, and what do they suggest for informing decisions to buy or sell company shares or change

management procedures?

4. Operating performance: Accurately present and explain the significance of the fixed-asset turnover ratio for this company. In other

words, what is the ratio value for this company, and what does it suggest for informing decisions to buy or sell company shares or change

management procedures?

5. Cash flow: Accurately present and explain the significance of the dividends payout ratio for this company. In other words, what is the

ratio value for this company, and what does it suggest for informing decisions to buy or sell company shares or change management

Procedures?

6. Investment valuation: Accurately present and explain the significance of the price/book value, price/earnings, price/sales, and dividend

yield ratios for this company. In other words, what are the ratio values for this company, and what do they suggest for informing

decisions to buy or sell company shares or change management procedures?

The income statement and balance sheet which I've used for this project are below

image text in transcribed

image text in transcribed

Thank you, very much

BB Income Statement tesla Horizontal Analysis File Edit View Insert Format Data Tools Add-ons Help Last edit was 7 days ago 100% $ % .0 .00 123- Default (Ca.. 10 B IS A . ES - 24 A B D E F G H 1 1 AMT % 2 3 4 4 5 6 (In Thousands) (USD) Total Revenue EBITDA Operating Income Net Income Revenue per Share EPS from Continuing Operations EPS - Net Income - Diluted Share Outstanding Weighted Average Shares Outstanding - Basic Weighted Average Shares Outstanding - Diluted Earnings per Share - Basic 2020 31536000 3442000 1994000 721000 33.71 0.64 0.64 960000 933000 1083000 0.74 7 AMT % 2019 6958000 28.3 24578000 2096000 155.72 1346000 2063000 2889.85 -69000 -141000 16.35 -862000 5.94 21.38 27.77 0.66 67.34 -0.98 0.66 67.34 -0.98 55000 6.07 905000 48000 5.42 885000 198000 22.37 885000 0.76 77.55 -0.98 2018 14.52 21461268 80.96 743793 -82.21 -388073 11.68 -976091 10.32 25.17 14.03 -1.14 14.03 -1.14 4.86 863015 3.79 852625 3116732 602207 319073 -114091 2.6 0.16 0.16 41985 32375 32375 0.16 8 9 10 11 12 3.79 14.03 852625 -1.14 13 14 15 16 17 18 19 20 21 22 23 24 25 + Income Statement + Type here to search O 99+ S Balance Sheet tesla Horizontal Analysis File Edit View Insert Format Data Tools Add-ons Help Last edit was 7 days ago 100% $ % .O .00 123 Default (Ca... 10 B I SA lali A25 fx . B D E F G H 1 1 AMT % 2018 ---- --- 2 3 4 5 (In Thousands) (USD) Total Assets Current Assets Total Liabilities Long Term Debt Stockholders' Equity Total Assets per Share Current Liabilities Net Assets per Share 2020 AMT % 2019 52148000 17839000 52.00% 34309000 4569386 26717000 14614000 120.75% 12103000 3796692 29923000 2232000 8.06% 27691000 2874629 9556000 -2078000 -17.86% 11634000 2230328 22225000 15607000 235.83% 6618000 1694757 54.32 16.41 43.29% 37.91 3.45 14248000 3581000 33.57% 10667000 674864 23.15 15.84 216.69% 7.31 1.61 6 15.36% 29739614 45.71% 8306308 11.58% 24816371 23.72% 9403672 34.42% 4923243 10.01% 34.46 6.75% 9992136 28.25% 5.7 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 25 - Change In Auditors

Authors: Kate Mooney

3rd Edition

0071719474, 9780071719476

More Books

Students also viewed these Accounting questions