class: Fin. Statement Analysis

project, please be carful with ansswer

The income statements for Armani Co for the fiscal years 2018, 2019, and 2020 follow:

The balance sheets for Armani Co for the fiscal years 2018, 2019, and 2020 are shown here.

All numbers in Millions
Period Ending	12/31/2020	12/31/2019	12/31/2018
Current Assets
Cash and Cash Equivalents	20,500	19,344	16,789
Short-Term Investments	10,250	5,400	3,918
Net Receivables	12,985	8,335	6,200
Inventory	16,800	11,484	10,263
Total Current Assets	60,535	44,563	37,170
Property Plant and Equipment	49,200	29,110	25,760
Goodwill	9,295	4,370	3,750
Intangible Assets	3,120	1,721	560
Total Non-Current Assets	61,615	35,201	30,070
Total Assets	122,150	79,764	67,240
Liabilities and Equity
Current Liabilities
Accounts Payable	$34,700	$22,350	$21,540
Short/Current Long-Term Debt	28,500	19,675	17,514
Other Current Liabilities	8200	7149	5120
Total Current Liabilities	$71,400	$49,174	$44,174
Long-Term Debt	18,760	7,690	8,226
Other Liabilities	7450	5000	3300
Total Liabilities	$97,610	$61,864	$55,700
Stockholders' Equity
Common Stock	$20,000	$15,000	$10,000
Retained Earnings	4,540	2,900	1,540
Total Stockholder Equity	$24,540	$17,900	$11,540
Total Liabilities and Stockholder Equity	$122,150	$79,764	$67,240

1. Calculate the following ratios for the years 2019 & 2020:

• profit margin
• Assets Turnover
• PPE Turnover
• Return on Assets
• Financial Leverage
• Return on Equity
• Times interest earned ratio
• Cash conversion cycle
• Current Ratio
• Liabilities to equity ratio

2. Explain the analytical purpose of each of the above ratios and specify what investors can learn about the companys financial stability and operating efficiency, liquidity and solvency from these ratios.