Use the financial information provided for Snapchat to calculate the ratios listed below for 2016 and 2017. Ratio 2017 2016 Current ratio Total Asset Turnover Days Sales Outstanding Times Interest Earned Debt Ratio Operating Profit Margin Net Profit Margin What do these ratios tell you about the liquidity, use of assets (activity), financial leverage (debt) and profitability of the company from one year to the next? What is improving in the company and what is getting worse? Revenue 12/31/2017 12/31/2016 12/31/2015 Total Revenue Cost of Revenue Gross Profit 824,949 677,148 147,801 404,482 451,660 -47,178 58,663 182,341 -123,678 Operating Expenses 1,525,454 2,043,586 183,618 289,404 82,235 159,416 Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss 185 24,470 4,270,658 -3,445,709 924,867 -520,385 185 423,992 -365,329 Income from Continuing Operations Total Other Income/Expenses Net -17,699 Earnings Before Interest and Taxes -3,445,709 Interest Expense -3,456 Income Before Tax -3,463,408 Income Tax Expense -18,342 Minority Interest Net Income From Continuing Ops -3,445,066 -1,338 -520,385 -1,424 -521,723 -7,080 -15,153 -365,329 -1,424 -380,482 -7,589 -514,643 -372,893 12 9 8 Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Total Liabilities and Stockholder Equity -4,656,667 14,157 7,634,825 -693,219 -10,000 1,467,355 -1,207,862 -2,057 2,728,823 -2,057 1,518,913 1,722,792 14,157 2,992,327 -10,000 764,144 938,936 3,421,566 Use the financial information provided for Snapchat to calculate the ratios listed below for 2016 and 2017. Ratio 2017 2016 Current ratio Total Asset Turnover Days Sales Outstanding Times Interest Earned Debt Ratio Operating Profit Margin Net Profit Margin What do these ratios tell you about the liquidity, use of assets (activity), financial leverage (debt) and profitability of the company from one year to the next? What is improving in the company and what is getting worse? Revenue 12/31/2017 12/31/2016 12/31/2015 Total Revenue Cost of Revenue Gross Profit 824,949 677,148 147,801 404,482 451,660 -47,178 58,663 182,341 -123,678 Operating Expenses 1,525,454 2,043,586 183,618 289,404 82,235 159,416 Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss 185 24,470 4,270,658 -3,445,709 924,867 -520,385 185 423,992 -365,329 Income from Continuing Operations Total Other Income/Expenses Net -17,699 Earnings Before Interest and Taxes -3,445,709 Interest Expense -3,456 Income Before Tax -3,463,408 Income Tax Expense -18,342 Minority Interest Net Income From Continuing Ops -3,445,066 -1,338 -520,385 -1,424 -521,723 -7,080 -15,153 -365,329 -1,424 -380,482 -7,589 -514,643 -372,893 12 9 8 Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Total Liabilities and Stockholder Equity -4,656,667 14,157 7,634,825 -693,219 -10,000 1,467,355 -1,207,862 -2,057 2,728,823 -2,057 1,518,913 1,722,792 14,157 2,992,327 -10,000 764,144 938,936 3,421,566
