Cheap Custom Essay:Liquidity ratios
Your manager has asked you to analyze the company’s current financial position. Using the company’s most recent financial statements, complete the questions below. Once you complete the calculations, you will have enough information to answer the questions and write your paper.
Part 1
Calculate and show your work for each of the following ratios:
Asset turnover
Profit margin
Return on assets
Return on common stockholders’ equity
Solvency ratios
Debt to total assets
Times interest earned
Complete vertical and horizontal analyses for the 2 most recent annual reports.
Identify any areas, if any, that would cause concern in following U.S. GAAP.
How is this financial information useful to the management team in decision making?
Analyze the financial ratios, and describe what they reveal about the company’s current financial position.
What does this financial information reveal about the company’s overall performance?
Based on the information available, what recommendations would you have for continuous process improvements (e.g., investments in technology efficiencies, employee training, and so on)?
As a publicly traded company, what accounting ethical issues should the company consider?
