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 Current 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 148 Equity Debt-to-lquity Ratio 1.57 Eamings Before iInterest and Taxes (EBIT) /Interest Chargés Interest Coverage 2.38 2.61 Total Assets / Total Stockholders' Equity Asset to Equity Ratio 3.16 3.28 Profitability Ratios Sales Cost of Goods Sold or Cost of Service / Sales Net Profit/ Sales Gross Profit Margin 19.76 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 Roturn on Equity 8.46 9.5 Pricellarnings 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 Current 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 148 Equity Debt-to-lquity Ratio 1.57 Eamings Before iInterest and Taxes (EBIT) /Interest Chargés Interest Coverage 2.38 2.61 Total Assets / Total Stockholders' Equity Asset to Equity Ratio 3.16 3.28 Profitability Ratios Sales Cost of Goods Sold or Cost of Service / Sales Net Profit/ Sales Gross Profit Margin 19.76 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 Roturn on Equity 8.46 9.5 Pricellarnings Ratio Price Per Share / Earnings Per Common Share 27.5 22.24 Other Relevant Information None
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
Problem 2EP
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