Assignment - Financial Statement Analysis
Part 1 - Financial Analysis
The condensed financial statements of Soule Company for the years 2013 and 2014 are oresented below.
Compute the following ratios for 2014 and 2013.
(a) Current ratio.
(b) Inventory turnover. (Inventory on 12/31/12 was £326.)
(c) Profit margin ratio.
(d) Return on assets. (Assets on 12/31/12 were £2,100.)
(e) Return on common stockholders' equity. (Stockholders' equity on 12/31/12 was £960.)
(f) Debt to total assets ratio.
(g) Times interest earned.
Part 2 - Performance Evaluation
Evaluate the financial performance of a company of your choosing using the knowledge and technical skills that you have gained during the course so far. Provide a theoretical explanation of any ratio analysis. No need to recalculate ratios, often the financial reports provides these.