Reference no: EM132467033

Question 1

Using Goggle financial statement from 2019 apply those ratios to analyze this company financial position and provide clear interpretation on each ratio below utilize formulas.  Also analyze this company's possibility to file Bankruptcy by using the Z-score.

Needed information to complete ratios below

A) Profitability analysis

Profit Margin: Profit Margin = Net profit / Sales

Net Profit = $40,499 mil, Sales = 9177

Profit Margin = $40,499 mil/9177 = 22.66%

(B) asset turnover = Sales / Total Asset

Asset = $260,073 mil Billion

Asset Turnover = $40,499 mil / $260,073 mil = 0.16

(C). Fixed Asset turnover = Sales / Fixed Assets

Fixed Assets = 72.987

Fixed Asset turnover = 1.52

(D). Rate of return on shareholder's equity or ROE

ROE = Net income / Equity

Equity = $28,272 mil

ROE = $28,272/$1293,581 = 14.60%

(E). Earnings per share = Earning (Net Income) / Number of shares

Number of shares = $1466.17 bill

Earnings per share = $46.60 at the end of 2019

Complete ratios below with added information above

(F) Price earning per share =$10.12 

 a. Current Ratio

 b. Quick Ratio

 c. Days Accounts Receivable

 d. Day Inventory

 e. Days Accounts Payable

 f. Liabilities to Asset Ratio

 g. Liabilities to Shareholders' Equity Ratio

 h. Long Term Debt Ratio to Long-Term Capital Ratio

 I. Operating Cash Flow to Total Liabilities Ratio

 j. Interest Coverage Ratio