Cango: Balance Sheet and Ratio
BUSN460 Individual Financial Analysis Project
Student Name:
Instructions:
Go to the CanGo intranet found in the Report Guide tab under Course Home
Use the financial statements from the most recent year to fill in the table below.
You may find some formulae calling for an average, e.g., average inventory, average receivables.
Because we only have the Balance sheet for one year, you can only use the one year number not an average.
Assume interest expense is $0.00
Be sure to cite your references
Green boxes to be filled in by instructor
Ratio Formula (express the ratio in words) Detailed calculation (actual numbers from financial statements used for the calculation) Final number (final result of the detailed calculation) Explanation of why ratio is important Earned points (up to 3 points per "box"/cell) Instructor feedback
Example: Term A/Term B (Term A divided by Term B) 1000 / 2000 0.5 This is the explanation of the role of this ratio and why it is important 3
Efficiency Ratio: Receivables Turnover Net Sales ÷ Accounts Receivable 50,000,000 ÷ 33,000,000 1.52 This ratio shows the company how quickly accounts receivable are paid. A high turnover generally means more cash on hand for the company.
Grade for above 0.0
Efficiency Ratio: Inventory Turnover Cost of Goods Sold ÷ Average Inventory 9,000,000 ÷ 32,000,000 0.28 This ratio shows how often the inventory sells and needs to be restocked which is important in determining accurate merchandising scheduling and helps prevent under or overstocking of the product.
Grade for above 0.0
Financial Leverage Ratio: Debt/Equity Ratio Total Liabilities ÷ Shareholders Equity 94,900,000 ÷ 141,000,000 0.67 This ratio shows how financially stable a company is. It shows the relationship between the invested capital and the credit available. The final number will show if the company is poised to grow or is underachieving.
Student Name:
Instructions:
Go to the CanGo intranet found in the Report Guide tab under Course Home
Use the financial statements from the most recent year to fill in the table below.
You may find some formulae calling for an average, e.g., average inventory, average receivables.
Because we only have the Balance sheet for one year, you can only use the one year number not an average.
Assume interest expense is $0.00
Be sure to cite your references
Green boxes to be filled in by instructor
Ratio Formula (express the ratio in words) Detailed calculation (actual numbers from financial statements used for the calculation) Final number (final result of the detailed calculation) Explanation of why ratio is important Earned points (up to 3 points per "box"/cell) Instructor feedback
Example: Term A/Term B (Term A divided by Term B) 1000 / 2000 0.5 This is the explanation of the role of this ratio and why it is important 3
Efficiency Ratio: Receivables Turnover Net Sales ÷ Accounts Receivable 50,000,000 ÷ 33,000,000 1.52 This ratio shows the company how quickly accounts receivable are paid. A high turnover generally means more cash on hand for the company.
Grade for above 0.0
Efficiency Ratio: Inventory Turnover Cost of Goods Sold ÷ Average Inventory 9,000,000 ÷ 32,000,000 0.28 This ratio shows how often the inventory sells and needs to be restocked which is important in determining accurate merchandising scheduling and helps prevent under or overstocking of the product.
Grade for above 0.0
Financial Leverage Ratio: Debt/Equity Ratio Total Liabilities ÷ Shareholders Equity 94,900,000 ÷ 141,000,000 0.67 This ratio shows how financially stable a company is. It shows the relationship between the invested capital and the credit available. The final number will show if the company is poised to grow or is underachieving.