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Financial Analysis of Landry's Restaurants

1. Financial Statements Analysis
Using the financial statements of Landry's Restaurants located in Appendix A of the text, Fundamentals of Financial Accounting 1st ed., by Phillips, Libby, and Libby, compute the following ratios for 2002 and 2003:
a. Earnings per share
b. Return on assets
c. Current ratio
d. Times interest earned
e. Asset turnover
f. Debt to total assets
g. Current cash debt coverage
h. Cash debt coverage
i. Free cash flow
Use the Word template in the Course Materials forum to get the ratio formulas and calculate out the answers.
Based on your analysis, what does this tell you of Landry's financial performance (consider the changes between years)?
Properly cite your references. If you used an electronic source, include the URL. If you used a printed source please attach a copy of the data to your paper.

FINANCIAL REPORTING AND ANALYSIS CASES

1. How much cash (including cash equivalents) does the company report at the end of the current year?
2. Assuming that cost of revenues is the same thing as cost of goods sold, compute the company's gross profit percentage for the most recent two years. Has it risen or fallen? Explain the meaning of the change.
3. Assume that Landry's experienced no shrinkage in the most current year. Using the balance sheet and income statement, estimate the amount of purchases in the most recent year.

Attachments

Solution Preview

For your convenience, attached is a formatted MS Excel spreadsheet containing the information below, the requested financial rations, as well as a thorough analysis of each and their impact on the company's finance and operations.

Feel free to contact me in the future in the event that additional assistance is required.
1. How much cash (including cash equivalents) does the company report at the end of the current year?
From Page 8 of Landry's Restaurants 2003 Annual Report, the company reports that it's cash balance for the tax year 2003 was $35,211,319.00.

2. Assuming that cost of revenues is the same thing as cost of goods sold, compute the company's gross profit percentage for the most recent ...

Solution Summary

This file contains a formatted MS Excel spreadsheet with financial analysis data, including a thorough ratio analysis for Landry's Restaurants.

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