# week 7 post to the topic and reply to 2 students, writing homework help

Discussion: This week you are learning how to perform financial statement analysis. post on the below topic and reply to 2 students posts

• Pick a publicly traded corporation and locate their annual report; you can even use the one you picked for a discussion board question back in Week 3
• Use their financial statements to compute seven ratios based on the financial statements you find
• Show what you computed for these seven ratios
• Explain what each ratio says about the financial health of the company

below are the 2 student posts

#### Hannah Burke in response to this Topic

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1)Current Ratio
\$21,120+\$20,481+\$16849+\$2,349/\$35,490+\$25,181
=1.00 to 1

This is good that the company is pretty much a 1 to 1 ratio because that means they are usually meeting their goals and they are not falling behind.

2) Acid-test Ratio
\$21,120+\$20,481+\$16,849/\$35,490+\$25,181
=.96 to 1

Even though this number is below one that is okay because it is very close to 1 and other ratios will reflect off of this number and it also shows that the company is doing very well.

3)Debt-to-Equity Ratio
(\$35,490+\$25,181+\$53,463)/(\$27,416+\$92,284)
=.95 to 1

This is not a very good number because it is saying that the company does not have a very good chance for expanding. As the years have gone on the number has gotten bigger. Apple needs to work to get this number down.

4)Times Interest Earned
(\$93,626-\$22,396)/\$1,285
=55.4 times

This is good for the company to have a large number because if it is higher it says shows there is not as much debt. Which a company does not want.

5)Profit margin Ratio
\$53,395/\$233,715
=22.8%

This number is showing the company’s ability to earn net income, because if they type of company apple is it requires a higher number.

6)Total Asset turnover
\$233,715/(\$290,479+\$231,839)/2
=.89 times

This is the company’s ability to earn sales so if the number is higher it means the company is doing a good job earning sales.

7)Return on Total Assets
\$53,394/(\$290,479+\$231,839)/2
=20.4%

#### Younes Elkhalloufi in response to this Topic

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7 ratios for H & M Hennes & Mauritz – 2015
1. Working capital: (12950+5869+24833+1884) – (6000+13745+3192)= \$22,599
this calculation shows that H&M more likely to meet its current obligation.
2. Current ratio: (12950+5869+24833+1884) / (6000+13745+3192) = 1.98
this ratio indicates that the company could pay short-term and long-term obligations.
3. Quick ratio: (12950+5869) / (6000+13745+3192) = 0.82
H&M has a good ration concerning the amount of assets that could be converted quickly into cash versus the amount of current liabilities
4. Debt to equity: 27764 / 58049 = 0.47
the creditors supplied \$0.47 for each \$1 supplied by shareholders
5. Earnings per share: 4820 / 1655.07 = 2.91
as far as the company’s profitability, \$2,91 of income for each common stock.
6. Times interest earned: 6301 / 1481 = 4.25
the company is able 5.24 times to pay its lenders for interest.
7. Return on stockholders’ equity: 4820 / 58049 = %8.3
H&M generated %8.3 of profit using the money provided by the stockholders’