Question
You have been asked by the CFO to analyze a prospective customer who has requested sales on credit. Use the financial statements for Techno TCL,
You have been asked by the CFO to analyze a prospective customer who has requested sales on credit. Use the financial statements for Techno TCL, Inc to calculate the ratios.
Prepare a brief report to the CFO including the calculations and 2-3 sentences interpreting each ratio.
One: Calculate and interpret the following debt ratios: debt ratio, debt-equity ratio, and times interest earned for all three years.
Two: Analyze one of the debt ratios including why the ratio is used and what the actual results for TechnoTCL might indicate.
Three: Calculate and interpret the following profitability ratios: operating profit margin, net profit margin, return on assets, and return on equity for all three years.
Four: Analyze one of the profitability ratios including why the ratio is used and what the actual results for TechnoTCL might indicate.
Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Other Assets Total Assets Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Total Liabilities Stockholders' Equity Total Stockholder Equity Revenue Total Revenue Cost of Revenue Gross Profit Operating Expenses Selling General and Administrative Operating Income or Loss Income from Continuing Operations Other Income/Expenses Net - Interest Expense Income Before Tax Income Tax Expense Net Income 12/31/2021 12/31/2022 12/31/2023 9,157 6,966 6,693 2,722 31 25,569 1,949 16,590 14,429 13,432 635 72,604 6,157 4,400 3,870 14,427 30,052 11,102 55,581 17,023 56,519 25,400 31,119 21,226 9,893 10,607 8,897 7,021 2,944 43 -1,508 1,207 7,178 1,957 5,221 29,512 2,039 17,237 14,741 13,835 910 78,274 6,724 4,017 4,112 14,853 33,793 14,522 63,168 15,106 57,902 25,340 32,562 20,706 11,856 8,719 270 -1,507 1,288 9,061 4,130 4,931 7,140 3,126 2,042 21,297 12/31/2021 12/31/2022 12/31/2023 2,407 17,587 14,806 15,823 5,122 77,042 7,211 3,951 6,601 17,763 28,293 12,611 58,667 18,375 51,728 23,502 28,226 19,184 9,042 -1,148 1,220 6,674 2,696 3,978
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started