Solution-Compare the financial analysis

Compare the financial analysis

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Reference no: EM133056331

Compare the Financial Analysis for 2021 to 2020. Answer the following:

Do the results indicate the business is financially healthy or financially unhealthy? Which results indicate this?
What might be the cause(s) of the business's financial success or failure?
Is more information needed to determine the business's financial health? If so, which pieces of information might still be needed?

2021 Analysis

TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets)

Total Revenue	13757000000
Total Assets	57834000000	0.237870457


FINANCIAL LEVERAGE (Total Assets / Shareholder's Equity)

Total Assets	57834000000
Shareholder's Equity	27053000000	2.137803571


NET PROFIT MARGIN (Net Income / Total Revenue)

Net Income	1659000000
Total Revenue	13757000000	0.120593153


RETURN ON ASSETS (Net Income / Total Assets)

Net Income	1659000000
Total Assets	57834000000	0.028685548


RETURN ON EQUITY (Net Income - Preferred Dividends / Shareholder's Equity)

NI - Pref. Div.	1659000000
Shareholder's Equity	27053000000	0.061324068

2020 Analysis

TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets)

Total Revenue	8771000000
Total Assets	45691000000	0.191963406


FINANCIAL LEVERAGE (Total Assets / Shareholder's Equity)

Total Assets	45691000000
Shareholder's Equity	16031000000	2.850165305


NET PROFIT MARGIN (Net Income / Total Revenue)

Net Income	369000000
Total Revenue	8771000000	0.042070459


RETURN ON ASSETS (Net Income / Total Assets)

Net Income	369000000
Total Assets	45691000000	0.008075989


RETURN ON EQUITY (Net Income - Preferred Dividends / Shareholder's Equity)

NI - Pref. Div.	369000000
Shareholder's Equity	16031000000	0.023017903

Reference no: EM133056331

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Compare the financial analysis

Reference no: EM133056331

Reference no: EM133056331

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