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Use the below Summary Financial Statement Data to perform a Common Size Analysis in Cells C7 through C40. Use Total Assets for the Balance Sheet
Use the below Summary Financial Statement Data to perform a Common Size Analysis in Cells C7 through C40. Use Total Assets for the Balance Sheet and Total Revenue for the Income Statement. | |||||||
Calculate the listed financial ratios in cells B44 through B50. Compare to the provided Industry Standards and provide your interpretation in cells D45 to D50. Provide an interpretation for each ratio. | |||||||
15 points | |||||||
Summary Balance Sheet | 2021 | ||||||
(in 000s) as of Dec 31, 2021 | Common Size Analysis | ||||||
Cash and Investments | $4,249,248 | ||||||
Other current assets | $1,166,721 | ||||||
Property and equipment, net | $2,594,988 | ||||||
Other assets | $1,680,692 | ||||||
Total Assets | $9,691,650 | ||||||
Current liabilities | $1,340,412 | ||||||
Long-Term Debt | $2,349,254 | ||||||
Other liabilities | $846,217 | ||||||
Total Liabilities | $4,535,883 | ||||||
Net assets | |||||||
Unrestricted | $5,073,856 | ||||||
Restricted | $81,830 | ||||||
Total Net Assets (Equity) | $5,155,686 | ||||||
Total liabilities and net assets | $9,691,569 | ||||||
Summary Statement of Revenue and Expenses | 2021 | ||||||
(in 000s) for the year ended Dec 31, 2021 | |||||||
Operating Revenue | $6,656,531 | ||||||
Operating Expenses | |||||||
Salaries and Employee Benefits | $3,531,749 | ||||||
Supplies and other expenses | $2,417,078 | ||||||
Depreciation, amoritization and interest | $375,596 | ||||||
Total Operating Expenses | $6,324,423 | ||||||
Operating Income | $332,108 | ||||||
Nonoperating Income | $398,691 | ||||||
Excess of Revenues over Expenses (Net Income) | $730,799 | ||||||
Calculated Ratios: | Industry Standard | Interpretation | |||||
ROE (NI/TE) | 25.5% | ||||||
Total Margin (TM) (NI/TR) | 3.8% | ||||||
Total Asset Turnover (TR/TA) | 2.1 | ||||||
Equity Multiplier (TA/TE) | 3.2 | ||||||
ROA (TM x TAT) | 8.0% | ||||||
Current Ratio (CA/CL) | 1.3% | ||||||
Debt Ratio (TL/TA) | 69.0% | ||||||
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