Question
question 1 Conduct a horizontal analysis of the Balance Sheet and Income Statement items, analyze thetrends, identify problems. (20 points) Conduct a common size analysis
question 1
Conduct a horizontal analysis of the Balance Sheet and Income Statement items, analyze thetrends, identify problems. (20 points)
Conduct a common size analysis of the Balance Sheet and Income Statement items,comment on the results. (20 points)
Combine the results of the horizontal and common size analyses and make a comprehensive commentary of the firms financial health. (30 points)
AVIS RENT-A-CAR
INCOME STATEMENT ($
millions)
|
| 2015 | 2016 | 2017 | 2018 | 2019 |
| Sales | 24,455 | 25,477 | 26,858 | 28,374 | 30,052 |
| Cost of Goods Sold | 20,391 | 21,448 | 22,480 | 24,023 | 24,826 |
| Gross Profit | 4,064 | 4,029 | 4,378 | 4,351 | 5,226 |
| Depreciation | 1,374 | 1,391 | 1,426 | 1,416 | 1,425 |
| Operating Profit | 2,690 | 2,638 | 2,952 | 2,935 | 3,801 |
| Interest Expense | 655 | 955 | 2,215 | 2,021 | 1,987 |
| Non-Operating Income/Expense |
412 |
179 |
661 |
256 |
188 |
| Pretax Income | 2,327 | 1,862 | 1,398 | 1,170 | 2,002 |
| Total Income Taxes | 725 | 625 | 316 | 268 | 627 |
| Minority Interest | 178 | 201 | 208 | 229 | 321 |
| Net Income | 1,424 | 1,036 | 874 | 673 | 1,054 |
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
Personal Finance Terms Financial Education Is Your Best Investment
Authors: Thomas Herold
1st Edition
1090822871, 978-1090822871
