Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of the following company. Financial Ratios Fiscal Year Ended Previous Fiscal Year Formula Dec 31, 2019 Dec 31, 2018 Liquidity Analysis Ratios: Current Ratio or Working Capital Ratio Curent Assets / Current Liabilities 1.46 1.36 (Current Assets Inventory- Prepayments) / Current Liabilities Quick Ratio 0.96 0.86 Solvency Ratio Total Assets / Total Liabilities 1.46 1.44 Financial Leverage Ratios Debt Ratio Total Debt/Total Assets 0.47 0.48 Total Debt/Total Stockholders Debt-to-Equity Ratio 1.48 1.57 Equity Eamings Before Interest and Taxes (BIT)/ Interest Charges Interest Coverage 2.38 2.61 Total Assets / Total Asset to Equity Ratio 3.16 3.28 Stockholders' Equity Profitability Ratios Sales Cost of Goods Sold or 19 76 Cost of Service / Sales Net Profit / Sales Gross Profit Margin 19.43 Net Profit Margin 11.34 11.42 Return on Assets Net Income/ Total Assets 2.67 2.9 Net Income / Total Stockholders' Equity Return on Equity 8.46 9.5 Priceltarnings Ratio Price Per Share / Earnings Per Common Share 27.5 22.24 Other Relevant Information None

Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of the following company. Financial Ratios Fiscal Year Ended Previous Fiscal Year Formula Dec 31, 2019 Dec 31, 2018 Liquidity Analysis Ratios: Current Ratio or Working Capital Ratio Curent Assets / Current Liabilities 1.46 1.36 (Current Assets Inventory- Prepayments) / Current Liabilities Quick Ratio 0.96 0.86 Solvency Ratio Total Assets / Total Liabilities 1.46 1.44 Financial Leverage Ratios Debt Ratio Total Debt/Total Assets 0.47 0.48 Total Debt/Total Stockholders Debt-to-Equity Ratio 1.48 1.57 Equity Eamings Before Interest and Taxes (BIT)/ Interest Charges Interest Coverage 2.38 2.61 Total Assets / Total Asset to Equity Ratio 3.16 3.28 Stockholders' Equity Profitability Ratios Sales Cost of Goods Sold or 19 76 Cost of Service / Sales Net Profit / Sales Gross Profit Margin 19.43 Net Profit Margin 11.34 11.42 Return on Assets Net Income/ Total Assets 2.67 2.9 Net Income / Total Stockholders' Equity Return on Equity 8.46 9.5 Priceltarnings Ratio Price Per Share / Earnings Per Common Share 27.5 22.24 Other Relevant Information None

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter5: Evaluating Operating And Financial Performance

Section: Chapter Questions

Problem 2EP

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