Question
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
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 discussion. In particular, this section should cover:
d) Vertical Analysis. Perform a vertical analysis of the income statement and the balance sheet from the most recent three years in order to answer the following questions. Be sure to include supporting calculations and a vertical analysis spreadsheet in an appendix.
1. Do any items in your vertical analysis stand out? Why or why not? Be sure to provide specific examples and explain what elements you considered in arriving at your answer.
2. What does your vertical analysis suggest for managing the company’s financial health? Be sure to justify your response. For example, are there things the company might want to look at more closely? Why or why not?
3. What does your vertical analysis suggest with respect to how potential investors would view the company? Justify your response. For example, are there items that might make potential investors less likely to buy the company’s stock? Are there items that might make potential creditors wary about lending to the company? Why or why not?
e) Horizontal Analysis. Perform a horizontal analysis of the same key performance measures covered by your vertical analysis to examine trends for the company over the most recent three-year time period. Use your analysis to answer the following questions and include supporting calculations and a horizontal analysis spreadsheet in an appendix.
1. Do any items in your horizontal analysis stand out? Why or why not? Be sure to explain what elements you considered in arriving at your answer.
2. What does your horizontal analysis suggest for managing the company’s financial health? Be sure to justify your response. For example, are there things the company might want to look at more closely? Why or why not?
3. What does your horizontal analysis suggest with respect to how potential investors would view the company? Justify your response. For example, are there any items that might make potential investors less likely to buy the company’s stock? Are there items that might make potential creditors wary about lending to the company? Why or why not?
Balance Sheet
(In Thousands) (USD) | 2020 | 2019 | 2018 | ||
Total Assets | 52148000 | 34309000 | 29739614 | ||
Current Assets | 26717000 | 12103000 | 8306308 | ||
Total Liabilities | 29923000 | 27691000 | 24816371 | ||
Long Term Debt | 9556000 | 11634000 | 9403672 | ||
Stockholders' Equity | 22225000 | 6618000 | 4923243 | ||
Total Assets per Share | 54.32 | 37.91 | 34.46 | ||
Current Liabilities | 14248000 | 10667000 | 9992136 | ||
Net Assets per Share | 23.15 | 7.31 | 5.7 |
Income Statement
(In Thousands) (USD) | 2020 | 2019 | 2018 |
Total Revenue | 31536000 | 24578000 | 21461268 |
EBITDA | 3442000 | 1346000 | 743793 |
Operating Income | 1994000 | -69000 | -388073 |
Net Income | 721000 | -862000 | -976091 |
Revenue per Share | 33.71 | 27.77 | 25.17 |
EPS from Continuing Operations | 0.64 | -0.98 | -1.14 |
EPS - Net Income - Diluted | 0.64 | -0.98 | -1.14 |
Share Outstanding | 960000 | 905000 | 863015 |
Weighted Average Shares Outstanding - Basic | 933000 | 885000 | 852625 |
Weighted Average Shares Outstanding - Diluted | 1083000 | 885000 | 852625 |
Earnings per Share - Basic | 0.74 | -0.98 | -1.14 |
Cash Flow
(In Thousands) (USD) | 2020 | 2019 | 2018 |
Cash from Operations | 5943000 | 2405000 | 2097802 |
Cash from Investing | -3132000 | -1436000 | -2337428 |
Cash from Financing | 9973000 | 1529000 | 573755 |
Capital Expenditures | 3157000 | 1327000 | 2100724 |
Cash Flow per Share | 5.49 | 2.72 | 2.46 |
Cash & Cash Equivalents, Beginning of Year | 6783000 | 4277000 | 3964959 |
Cash & Cash Equivalents, End of Year | 19901000 | 6783000 | 4276388 |
Step by Step Solution
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Step: 1
In the vertical analysis of the balance sheet we can see that the total assets increased significantly from 2018 to 2019 and then again from 2019 to 2...Get Instant Access to Expert-Tailored Solutions
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