1. IENG 215 Financial Analysis

2. Financial Statement Analysis  Liquidity Measures  current ratio  quick ratio  working capital  Long Term Credit Risk  debt to assets ratio  debt to equity

3. Financial Statement Analysis  Profitability Measures  return on assets  return on equity  net profit margin  earnings per share  Activity Ratios  accounts receivable turnover  inventory turnover

4. Liquidity  Working Capital 900,55 400,67300,123    sLiabilitieCurrentAssetsCurrentWC

5. Liquidity  Working Capital Q: Is $55,900 sufficient working capital to cover 2-3 months of expenses? 900,55 400,67300,123    sLiabilitieCurrentAssetsCurrentWC

6. Liquidity  Current Ratio(Industry > 2.0) 83.1 400,67 300,123    sLiabilitieCurrent AssetsCurrent CR

7. Liquidity  Quick Ratio (Industry > 1.0) 03.1 400,67 200,54300,123      sLiabilitieCurrent InventoryAssetsCurrent QR

8. Long Term Credit Risk  Debt to Assets (Industry < 33%) 50.0 100,387 200,193    AssetsTotal sLiabilitieTotal DA

9. Long Term Credit Risk  Debt to Assets (Industry < 33%) 50.0 100,387 200,193    AssetsTotal sLiabilitieTotal DA 1996 0.54

10. Long Term Credit Risk  Debt to Equity Ratio (Industry 33-50%) 996.0 900,193 200,193 '    EquitysOwner sLiabilitieTotal DE

11. Long Term Credit Risk  Debt to Equity Ratio (Industry 33-50%) 996.0 900,193 200,193 '    EquitysOwner sLiabilitieTotal DE 1996 1.182

12. Profitability Measures  Return on Assets(Industry 8-10%) 047.0 2 800,383100,387 000,18     AssetsAverageTotal IncomeNet ROA

13. Profitability Measures  Debt to Equity(Industry 12-15%) 097.0 2/)900,175900,193( 000,18     EquityOwnerAverage IncomeNet ROE

14. Profitability Measures  Net Profit Margin(Industry 4-6%) (Industry Specific) 031.0 800,574 000,18    SalesNet IncomeNet NPM

15. Profitability Measures  Earnings per Share(Industry Specific) 18 000,1,18 tan    dingOutsSharesCommon IncomeNet EPS

16. Activity Ratios  Accounts Receivable Turnover (Industry Specific) 46.13 2/)600,38800,46( 800,574 Re     ceivableAccountsAvg SalesNet ART

17. Activity Ratios  Inventory Turnover(Industry > 10) 365.8 2/)200,48200,54( 300,428     InventoryAverage SoldGoodsofCost IT

18. Financial Leverage

19. 18.0 000,100 000,18.0 000,100 000,18   ROE ROA

20. Financial Leverage

21. 28.0 000, 50 000,14.0 000,100 000,14   ROE ROA

22. Financial Leverage 28.0 000, 50 000,14.0 000,100 000,14   ROE ROA Note: ROI = 18,000/100,000