Lamar Swimwear
Financial Analysis of Lamar Swimwear
In this paper I will use the income statement and balance sheet to evaluate the financial performance of Lamar Swimwear, and the company’s worthiness as an investment. While just looking at a company’s financial report one is unable to see all of the details necessary to make a clear decision. Anything can look good on paper but if you scrutinize and analyze that paper you may be surprised at to what you may discover. Lamar Swimwear is one of those companies that looks like it may be flourishing within its industry until numbers are calculated. With the ratios that I will give within and throughout this paper it will allow you to see why Lamar Swimwear is not a good investment for a new partner to invest in. Year | Income | Assets | ROA | Industry Ratios | 200X | $ 88,200 | $ 1,100,000 | 8.02% | 7.94% | | | | | | 200Y | $ 91,800 | $ 1,350,000 | 6.80% | 8.86% | | | | | | 200Z | $ 119,700 | $ 2,100,000 | 5.70% | 8.95% | Year | Income | Stockholders' Equity | ROE | Industry Ratios | 200X | $ 88,200 | $ 554,600 | 15.90% | 14.31% | | | | | | 200Y | $ 91,800 | $ 646,400 | 14.20% | 15.26% | | | | | | 200Z | $ 119,700 | $ 856,100 | 13.98% | 16.01% | Year | Income | Sales | Net Profit Margin | Industry Ratios | 200X | $ 88,200 | $ 1,200,000 | 7.35% | 7.71% | | | | | | 200Y | $ 91,800 | $ 1,500,000 | 6.12% | 7.82% | | | | | | 200Z | $ 119,700 | $ 1,875,000 | 6.38% | 7.96% |
When looking at the numbers given on the income statement for Lamar Swimwear, it shows that the company is steadily
In this paper I will use the income statement and balance sheet to evaluate the financial performance of Lamar Swimwear, and the company’s worthiness as an investment. While just looking at a company’s financial report one is unable to see all of the details necessary to make a clear decision. Anything can look good on paper but if you scrutinize and analyze that paper you may be surprised at to what you may discover. Lamar Swimwear is one of those companies that looks like it may be flourishing within its industry until numbers are calculated. With the ratios that I will give within and throughout this paper it will allow you to see why Lamar Swimwear is not a good investment for a new partner to invest in. Year | Income | Assets | ROA | Industry Ratios | 200X | $ 88,200 | $ 1,100,000 | 8.02% | 7.94% | | | | | | 200Y | $ 91,800 | $ 1,350,000 | 6.80% | 8.86% | | | | | | 200Z | $ 119,700 | $ 2,100,000 | 5.70% | 8.95% | Year | Income | Stockholders' Equity | ROE | Industry Ratios | 200X | $ 88,200 | $ 554,600 | 15.90% | 14.31% | | | | | | 200Y | $ 91,800 | $ 646,400 | 14.20% | 15.26% | | | | | | 200Z | $ 119,700 | $ 856,100 | 13.98% | 16.01% | Year | Income | Sales | Net Profit Margin | Industry Ratios | 200X | $ 88,200 | $ 1,200,000 | 7.35% | 7.71% | | | | | | 200Y | $ 91,800 | $ 1,500,000 | 6.12% | 7.82% | | | | | | 200Z | $ 119,700 | $ 1,875,000 | 6.38% | 7.96% |
When looking at the numbers given on the income statement for Lamar Swimwear, it shows that the company is steadily
References: Burns Jr., W. J. (1992). Introduction to Financial ratios and Financial Statement Analysis. 15. Burns Jr., W. J. (1992). The Accounting Framework, Financial Statements, and Some Accounting Concepts. 12. Miolla, R. (n.d.). Prof. Miolla 's Concordia Finance Courses | AKLearning. AKLearning. Retrieved September 16, 2012, from http://www.aklearning.com/concordiafinance