Calculate the financial ratios listed below for 2022, 2021, and 2020 financial statements. Provide both a horizontal
Question:
Calculate the financial ratios listed below for 2022, 2021, and 2020 financial statements. Provide both a horizontal and vertical analysis.
A. Liquidity and Efficiency
i. Current Ratio = Current Assets / Current Liabilities
ii. Total Assets Turnover = Net Sales / Average Total Assets (use the total assets for each year)
B. Solvency
i. Debt Ratio = Total Liabilities / Total Assets
ii. Equity Ratio = Total Equity / Total Assets
C. Profitability
i. Net Income / Net Sales
ii. Net Income / Average Total Assets
D. Market Prospects
i. Price Earnings Ratio = Market Price Per Common Share / Earnings Per Share (EPS) (Market Price: 62.08 USD)
E. Analyze the company’s financial position and its ability to prosper going forward.
Income Statement:
Balance sheet:
Cash Flow:
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher