Purchase Solution

Financial analysis by different ratios

Not what you're looking for?

Ask Custom Question

Using the Internet and other sources, research and find a company to analyze. Prepare a report including the following information:

1) What is the history of this company? How did it begin? What differentiates this company for its competitors?

2) Compute the following ratios for this company:
? Current ratio
? Inventory turn over ratio
? Accounts receivable turnover ratio
? Debt to equity
? Return on assets
? Return on equity
? Gross margin on sales

What do these ratios indicate about the company? Who would be interested in each of the ratios listed above? Why?

3) How well is this company doing? If possible, find the industry ratios for comparison.

4) What other information would be useful for investors and creditors in making economic decisions about this company? Would you invest in this company?

Attachments
Purchase this Solution
Solution Summary

This shows the steps to compute current ratio, inventory turn over ratio, accounts receivable turnover ratio, debt to equity, return on assets, return on equity, gross margin on sales

Solution Preview

Using the Internet and other sources, research and find a company to analyze. Prepare a report including the following information:
1) What is the history of this company? How did it begin? What differentiates this company for its competitors?

Harley-Davidson, Inc. is primarily in the business of recreational vehicle. It is the parent company for the group of companies doing business as Harley-Davidson Motor Company (Motor Company), Buell Motorcycle Company (BMC) and Harley-Davidson Financial Services (HDFS). The Motor Company produces heavyweight motorcycles and offers a line of motorcycle parts, accessories, apparel and general merchandise. The Motor Company manufactures five families of motorcycles: Touring, Dyna Glide, Softail, VRSC and Sportster. BMC produces sport motorcycles, including five v-twin XB models and the single-cylinder Buell Blast. BMC also offers a line of motorcycle parts, accessories, apparel and general merchandise. HDFS provides wholesale and retail financing and insurance programs primarily to Harley-Davidson/Buell dealers and customers. The Company operates in two principal business segments: Motorcycles and Related Products (Motorcycles) and ...

Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Motivation

This tests some key elements of major motivation theories.

Operations Management

This quiz tests a student's knowledge about Operations Management

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • What are the limitations of using ratios for financial statement analysis?

    90575 What are the limitations of using ratios for financial statement analysis? What are the limitations of using ratios for financial statement analysis? What are the benefits? Will different user groups focus on different ratios? Why or why not?

  • Ratio analysis when different sources show different ratios

    References: http://www.scribd.com/doc/15596371/Final-Project-Report-on-Financial-Statement-Analysis The solution examines ratio analysis when different sources show different ratios.

  • Value of financial ratios to a case analysis

    * Ratios are subject to the limitations of accounting methods. Different accounting choices may result in significantly different ratio values. The expert examines the value of financial ratios to a case analysis.

  • Financial Management: Limitations of Ratio Analysis

    The financial ratios can be categories into different categories such as market value ratios, liquidity ratios, profitability ratios and leverage ratios.

  • Analyzing the Financial Performance of a Division

    Different users of financial ratios may (bankers, investors, the company) interpret financial ratios in different manner. Bankers are interested in knowing about the solvency of the organization.

  • Different users of financial ratios

    /university/ratios/debt/ratio5.asp This solution response discusses the interpretation of financial ratios by different users (bankers, investors, the company).

  • Tools of Financial analysis & limitations

    Otherwise, it is misleading. 2.Financial statement analysis is purely the post mortem of the things already happened. Ratios are only starting point of comparison. 3.Different companies use different accounting policies.

  • Business analysis and management

    Trend analysis compares a company's financial ratios over time. Using data from three years would provide a three-year trend analysis. An improvement in these ratios over time is what would be hoped for.

  • Financial Terminology and Health Care Finance

    Different aspects of business can be examined and studied by ratio analysis, liquidity ratios such as the current ratio or the quick ratio helps understand the firm's ability to satisfy its short term debt obligation.

  • Ratio and Quantitative Analysis

    Often, different ratios give different signals, so it is difficult to tell, on balance, whether a company is in a strong or weak financial condition.

View More Related Solutions