Task 1:

Consider the companys financial statements:

Global Industries PLC: Balance Sheet as of December 31, 2020 (in 000 EUR)

Cash 72,000 Accounts and notes payable 432,000

Accounts receivable 439,000 Accrued Expenses 170,000

Inventories 894,000 Totalcurrent liabilities 602,000

Total current assets 1,405,000 Long-term debt 404,290

Land and building 238,000 Common stock 575,000

Machinery 132,000 Retained earnings 254,710

Other fixed assets 61,000

Total assets 1,836,000 Total liabilities and equity 1,836,000

Global Industries PLC: Income Statement for year ended December 31, 2020 (in 000 EUR)

Sales 4,290,000

Costs of goods sold 3,580,000

Gross operating profit 710,000

General administrative and selling expenses 236,320

Depreciation 159,000

Miscellaneous 134,000

Earnings before taxes (EBT) 180,680

Taxes (40%) 72,272

Net Income 108,408

a) Calculate the financial indicators for Global Industries and complete the table:

Ratio	Global Industries PLC	Industry Average
Current ratio		2.7
Quick ratio		1.0
Days sales outstanding		32 days
Inventory turnover		7.0 times
Fixed asset turnover		13.0 times
Total asset turnover		2.6 times
Net profit margin		3.5%
Return on assets		9.1%
Return on equity		18.2%
Total debt / Total assets		50.0%

b) Summarize the companys financial performance relative to the industry average.

Companys strengths:

Companys weaknesses: