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You are asked to analyze the company financial statements from different perspectives to assess how the company is performing. 1 - Analyse the profitability of
You are asked to analyze the company financial statements from different perspectives to assess how the company is performing.
Analyse the profitability of the company.
o To do that calculate for the las years:
The return on total assets points
The return on equity points
The return on sales points
Assess the liquidity and asset management of the company
o To do that calculate for the las years:
Working capital. points
The current ratio. points
The acidtest ratio. points
The average collection period. points
Assess the company solvency:
o In order to do that, calculate for the las years:
The debttoequity ratio. points
The times interest earned ratio points
The Debt to Assets ratio points
How is the company growing in sales during this three years?, points
Summarize which are the strengths and weaknesses of the company based on the analysis performed. Which recommendations would you give to the company management to improve its competitive position? Support youranswer on your calculations. points
Explain why a difference between Net income and operating Cash Flow is there, explain the reasons using the actual data of company. points
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