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The purpose of the second part of the comprehensive project is to compute financial statement ratios. Based on the company ( in this case Shopify
The purpose of the second part of the comprehensive project is to compute financial statement ratios. Based on the companyin this case Shopify you selected in Part I, complete the following: Based on formulas in your textbook, compute the following ratios for TWO years. You may use Excel to compute your ratios. Debt ratio Gross profit margin Free cash flow Times interest earned Accounts receivable turnover Inventory turnover Prepare a DuPont Analysis of ROE for two years, including computations of Return on Sales Asset Turnover Return on Assets Financial Leverage Return on Equity Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is: stronger weaker quicker slower more less liquid more less risk
The purpose of the second part of the comprehensive project is to compute financial statement ratios. Based on the companyin this case Shopify you selected in Part I, complete the following:
Based on formulas in your textbook, compute the following ratios for TWO years. You may use Excel to compute your ratios.
Debt ratio
Gross profit margin
Free cash flow
Times interest earned
Accounts receivable turnover
Inventory turnover
Prepare a DuPont Analysis of ROE for two years, including computations of
Return on Sales
Asset Turnover
Return on Assets
Financial Leverage
Return on Equity
Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is:
stronger weaker
quicker slower
more less liquid
more less risk
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