1. Which ratios indicate that VGS operated more efficiently in 2025 than in 2024? Explain briefly.
2. Which ratios indicate that VGS' financial health may have declined in 2025? Explain briefly.
3. Consider the Return on assets and Asset turnover ratios. Do these seem to contradict each other? Explain why they look like they do.
4. Examine the differences in revenue and expenses shown in the income statement. What seems to be causing the difference in net income?
5. Perform a vertical analysis of the income statements. Explain how "common-sizing" the statements for the two years helps us to understand the changes better.
6. Consider the Retained earnings balances for 2023 - 2025. What are the reasons for the changes?
7. What effect does the change in Retained earnings have on the calculation of the debt-to-equity ratio for 2025? Does this change your assessment of the company's financial health (from #2 above)?
8. Combining of all the analytical tools you have learned to use, provide a "performance review" for the managers of Virtual Gaming Systems.