Assignment
a.)Financial Analysis:
Your analysis will include a calculation of the following ratios for 2018 and 2019 fiscal years:
1.)Profit Margin: Profit margin formula is quite easy to compute when one has two figures which are net profit and net sales. When net profit is divided by net sales, the ratio becomes net profit margin. In the context of calculations of profit margin, net income and net profit are used interchangeably.
Profit Margin = (Net Income / Net Sales) x 100
2019= ($315.4 / $5827.1) × 100
= 5.4%
2018 =$(653.3/ $5420.7) × 100
= 12%
2)Debt to Asset Ratio: The debt to asset ratio, also known as the debt ratio, is a financial calculation that allows you to evaluate a company’s leverage situation. This is accomplished by measuring the percentage of a firm’s assets that are funded by creditors, rather than by investors.
2019=$ 5849.3/ $6468.2
= 90.4%
2018= $5093.4/6188.4
= 82.3%
1)Current Ratio = The current ratio shows how many times over the firm can pay its current debt obligations based on its current, most liquid assets.
The current ratio is calculated from balance sheet data using the following formula:
Current ratio = Current assets / current labilités
2019= $2165.3/$ 3236.9
= 0.66 : 1
2018= $1979.5/$ 2523.9
= 0.78 : 1
Comment on the Basic Earnings per Share Amount:
Please provide a commentary on the result of the ratio or calculation, and your assessment of whether this is a positive or negative.
2)Review Annual Report:
Please review the annual report. Once you have reviewed the report provide your comments as to what you think the most important financial risk areas are to this company. Please relate your comments back to the financial statements where possible.
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