Question: Question 1 using Goggle financial statement from 2019 apply those ratios to analyze this company financial position and provide clear interpretation on each ratio below
Question 1
using Goggle financial statement from 2019 apply those ratios to analyze this company financial position and provide clear interpretation on each ratio below utilize formulas .also analyze this company's possibility to file Bankruptcy by using the Z-score.
needed information to complete ratios below
A) Profitability analysis
Profit Margin: Profit Margin = Net profit / Sales
Net Profit = $40,499 mil, Sales = 9177
Profit Margin = $40,499 mil/9177 = 22.66%
(B) asset turnover = Sales / Total Asset
Asset = $260,073 mil Billion
Asset Turnover = $40,499 mil / $260,073 mil = 0.16
(C). Fixed Asset turnover = Sales / Fixed Assets
Fixed Assets = 72.987
Fixed Asset turnover = 1.52
(D). Rate of return on shareholder's equity or ROE
ROE = Net income / Equity
Equity = $28,272 mil
ROE = $28,272/$1293,581 = 14.60%
(E). Earnings per share = Earning (Net Income) / Number of shares
Number of shares = $1466.17 bill
Earnings per share =$46.60 at the end of 2019
complete ratios below with added information above
(F) Price earning per share =$10.12
a. Current Ratio
b. Quick Ratio
c.Days Accounts Receivable
d. Day Inventory
e. Days Accounts Payable
f. Liabilities to Asset Ratio
g. Liabilities to Shareholders' Equity Ratio
h. Long Term Debt Ratio to Long-Term Capital Ratio
I. Operating Cash Flow to Total Liabilities Ratio
j. Interest Coverage Ratio
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