We have the following information for Safilo Group

Introduction

Profitability

Profit Margin $9\mathrm{.}23\%$

Operating Margin $($ttm$)14\mathrm{.}15\%$

Management Effectiveness

Return on Assets $($ttm$)3\mathrm{.}37\%$

Return on Equity $($ttm$)6\mathrm{.}44\%$

Income Statement

Revenue $($ttm$)25\mathrm{.}35$B

Revenue Per Share $($ttm$)57\mathrm{.}01$

Quarterly Revenue Growth $($yoy$)7\mathrm{.}10\%$

Gross Profit $($ttm$)15\mathrm{.}37$B

EBITDA $5\mathrm{.}38$B

Net Income Avi to Common $($ttm$)2\mathrm{.}34$B

Diluted EPS $($ttm$)5\mathrm{.}21$

Quarterly Earnings Growth $($yoy$)15\mathrm{.}90\%$

Balance Sheet

Total Cash $($mrq$)1\mathrm{.}7$B

Total Cash Per Share $($mrq$)3\mathrm{.}76$

Total Debt $($mrq$)11\mathrm{.}75$B

Total Debt$/$Equity $($mrq$)30\mathrm{.}62\%$

Current Ratio $($mrq$)0\mathrm{.}92$

Book Value Per Share $($mrq$)83\mathrm{.}61$

Cash Flow Statement

Operating Cash Flow $($ttm$)4\mathrm{.}82$B

Levered Free Cash Flow $($ttm$)2\mathrm{.}87$B

$1-$ Calculate financial ratios using financial statements obtained from public data. Calculate accurate financial ratios to assess the business$’$s current financial health. Specifically, calculate the following ratios:

a$)$ Working capital, b$)$ Current ratio, c$)$ Debt ratio, d$)$ Earnings per share, e$)$ Price$/$earnings ratio, f$)$ Total asset turnover ratio, g$)$ Financial leverage, h$)$ Net profit margin, i$)$ Return on assets, j$)$ Return on equity

$2-$ Explain what the results of your calculations and your comparison indicate about the business$’$s current financial health.

$3-$provid examples to support your explanation.

$4-$ You might consider the following questions:

a$)$ Do the results indicate the business is financially healthy or financially unhealthy? Which results indicate this?

b$)$ What might be the cause$($s$)$ of the business$’$s financial success or failure?

c$)$ Is more information needed to determine the business$’$s financial health? If so$,$ which pieces of information might still be needed?

$5-$ Explain how potential short$-$term financing sources could help the business raise needed funds to improve its financial health. Base your response on the business$’$s current financial information.

$6-$ Explain the rationale for the answers to financial ratio calculations.

$7-$analyze the business$’$s current financial position and help them make decisions about how to improve or maintain their financial health.

$8-$Pay particular attention to working capital management. If liquidity is an issue, consider how the company will meet its short$-$term obligation.

$9-$ Using Mergent Online, summarize the differences between the results from your most recent fiscal year and the results of the same financial calculations from the previous fiscal year of your chosen businesses.

$10-$ Equity Analyst and Worksheets.xlsx

$11-$ Explain how potential short$-$term financing sources could help the business raise needed funds to improve its financial health. Base your response on the business$’$s current financial information

$12-$ Conclusion

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