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Financial Analysis of Nissan

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

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

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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.

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

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

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

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