Did I do this correctly? The 11th tab in your Financial Statement Analysis Template must...

70.2K

Verified Solution

Question

Accounting

Did I do this correctly? The 11th tab in your Financial Statement Analysis Template must be labeled
Historical and Competitor Ratios
The list of ratios to be included are as follows. They should be grouped
under the headings, as shown:
Liquidity Ratios
o Current Ratio
o Quick Ratio
Leverage Ratios
o Debt to Total Assets Ratio
o Debt Equity Ratio
o Long-Term Debt to Equity
o Times Interest Earned Ratio
Activity Ratios
o Inventory Turnover
o Fixed Assets Turnover
o Total Assets Turnover
o Accounts Receivable Turnover
o Average Collection Period
Profitability Ratios
o Gross Profit Margin
o Operating Profit Margin
o Net Profit Margin
o Return on Total Assets (ROA)
o Return on Stockholders Equity (ROE)
o Earnings Per Share (EPS)
o Price Earnings Ratio
Calculate the ratios for your chosen company for the last three years, linking
the ratio calculations back to the historical financial statement tabs (Tabs 2-
4) using formulas.
Calculate the ratios for each of your companys competitors (most recent
year only), linking the ratio calculations to the competitor financial
statements shown in Tabs 5-10 using formulas.
Using the internet, locate the industry averages for the ratios listed above,
and include them in the final column of the ratio tab. Include a footnote on
the tab to identify the source of the industry averages. Ford Motor Company Competitor Ratio Analysis
Historical Ratios
For the years ended December 21,2022,2021,2020 For the year ended December 31,2022
202220212020 General Motors Tesla Industry Average
Liquidity Note 1
Current ratio 1.201.201.201.531.011.03
Quick Ratio 1.061.071.090.931.050.75
Leverage Ratios
Debt to Total Assets Ratio 0.830.810.880.730.440.51
Debt to Equity Ratio 4.924.307.702.830.821.38
Long-Term Debt to Equaity 2.124.297.672.670.810.47
Times Interest Earned Ratio 6.62-1.2610.8810.2813.699.32
Activity Ratios
Inventory Turnover 10.3010.0010.409.584.729.77
Fixed Assets Turnover 4.604.003.803.804.722.41
Total Assets Turnover 0.740.680.660.590.990.76
Accounts Receivable Turnover 11.6712.7613.223.3433.4933.96
Average Collection Period 31.2 days 28.6 days 27.7 days 109.35 days 11 days 55.81 days
Profitability Ratios
Gross Profit Margin 14.97%15.89%13.02%13.39%25.60%18.28%
Operating Profit Margin 5.22%3.32%6.58%6.58%16.76%6.73%
Net Profit Margin -12.50%13.16%-12.50%59.90%15.45%4.50%
Return on Total Assets (ROA)1.61%7.04%-0.77%3.81%14.64%3.32%
Return on Stockholders' Equity (ROE)9.67%46.56%-4.54%13.15%26.18%33.71%
Earnings Per Share (EPS) $(0.49) $4.45 $(0.32) $6.17 $4.03 $3.60
Price Earning Ratio -0.494.45-0.326.174.0312.61
Note 1: Some of the financial ratios for the automotive industry for 2022 are projected estimated averages. These values are only approximations and may not reflect the actual performance of the industry.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students