Explore BrainMass

Explore BrainMass

    Financial Analysis of Nissan

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Provide a summary of financial analysis for Nissan for 2010 and 2011:

    Current Ratio
    Quick Ratio
    Cash Ratio
    Total Debt Ratio
    Debt Equity Ratio
    Times Interest Earned
    Return on Equity
    Return on Total Assets
    Net Profit/Sales
    Expense/Sales
    Asset Turnover
    Price Earnings Ratio

    © BrainMass Inc. brainmass.com June 4, 2020, 2:59 am ad1c9bdddf
    https://brainmass.com/business/finance/financial-analysis-nissan-492247

    Solution Preview

    (http://www.nissan-global.com/EN/IR/LIBRARY/AR/index.html)

    We begin by looking at the balance sheet

    Current Ratio 11 = cur. assets/cur. liab. = 6,345,835/4,380,545 = 1.4486

    Curr. Ratio 10 = 5,580,410/3,856,858 = 1.4469

    ----------------

    Quick Ratio 11 = (cur. assets - inventory)/curr. liab. = (6,345,835 - 641,055 - 139,529 - 201,649)/4,380,545 = 1.2244

    Quick 10 = (5,580,410 - 540,407 - 127,190 - 134,681)/3,856,858 = 1.2389

    Note: There are quite a few ways to calculate the quick ratio, so you need to verify what your requirement is.

    ------------------

    Cash Ratio 11 = cash/cur. liab = 998,822/4,380,545 = 0.2280

    Cash 10 = 802,410/3,856,858 = 0.2080

    -------------------

    Total Debt ratio 11 = total liab/total assets = ...

    Solution Summary

    The following posting helps provides a summary of concepts related to financial analysis.

    $2.19

    ADVERTISEMENT