Financial Statement Analysis
Essay by ezaragoza11 • December 2, 2016 • Term Paper • 806 Words (4 Pages) • 1,340 Views
Financial Statement Analysis
Germaine Jamerson
Travis Taylor
Tricia Jones
Enrique Zaragoza
Robert Cruz
ACC/561
June 09, 2016
Neil de Pascal, Instructor
Introduction
Companies have four main Financial Statements: Balance Sheet, Income Statement, Statement of Shareholder's Equity and a Statement of Cash Flows. Ratios are used to evaluate if companies overall performance. Profitability ratio tells us the ability of an organization to make a Profit. Liquidity ratio describes whether the company is able to pay off all its liabilities when they become due. Solvency ratio measures the ability of an organization to pay long term commitments, such a bondholders and banks.
Ratios
Profitability ratio tells us the ability of an organization to make a Profit. The most important profitability ratios are Return on Assets (ROA), Gross Profit Margin (GPM), Operating Margin (OM), Return on Equity (ROE), Return on Sales (ROS) and Return on Investment (ROI).
Liquidity ratio describes whether the company is able to pay off all its liabilities when they become due. It not only measures the cash a company has, but how quickly they convert assets into cash. Some liquidity ratios are Quick Ratio, Acid Test ratio, Current Ratio and Working Capital Ratio.
Solvency ratio measures the ability of an organization to pay long term commitments, such a bondholders and banks. Solvency ratios are Debt to Equity Ratios, Debt Ratio and Equity Ratio.
Financial Statement Information
BALANCE SHEET COMPARISON | Chipotle | Starbucks | USPS | Home Depot | |
AS OF DECEMBER 2015 | MILLIONS | MILLIONS | MILLIONS | MILLIONS | |
Assets | |||||
Current Assets | 815 | 4,353 | 7,915 | 16,993 | |
Fixed Assets | 1,840 | 5,998 | 15,686 | 22,191 | |
Other Assets | 70 | 2,096 | 413 | 3,365 | |
TOTAL ASSETS | $2,725 | $12,446 | $24,014 | $42,549 | |
Liabilities | |||||
Current Liabilities | 280 | 3,654 | 48,911 | 12,526 | |
Long Term Liabilities | 284 | 2,348 | 25,494 | 22,853 | |
Other Liabilities | 33 | 625 | 0 | 854 | |
TOTAL LIABILITIES | $597 | $6,626 | $74,405 | $36,233 | |
Equity | |||||
Common stock | 0 | 2 | 3,132 | 88 | |
Additional Paid in capital | 1,173 | 41 | 0 | 9,347 | |
Treasury Stock | -1,235 | 0 | 0 | -33,194 | |
Accumulated Other C. Income | -8 | -199 | 0 | -898 | |
Non-controlling interests | 0 | 2 | 0 | 0 | |
Retained earnings | 2,198 | 5,975 | -53,523 | 30,973 | |
TOTAL S. EQUITY | $2,128 | $5,820 | ($50,391) | $6,316 | |
TOTAL LIABILITIES & EQUITY | $2,725 | $12,446 | $24,014 | $42,549 | |
Check | - | - | - | - | |
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INCOME STATEMENT DATA | Chipotle | Starbucks | USPS | Home Depot | |
2015 | MILLIONS | MILLIONS | MILLIONS | MILLIONS | |
Revenue | $4,501 | $19,163 | $68,928 | $88,519 | |
Net Income | $476 | $2,757 | ($5,060) | $7,009 |
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