Calculate and analyze the ratios

122 views 9:37 am 0 Comments September 16, 2023

Company XYZ operates in the retail industry and has provided the following financial information for the current year: – Total revenue: $5,000,000 – Cost of goods sold: $2,500,000 – Gross profit: $2,500,000 – Operating expenses: $1,800,000 – Net income: $700,000 – Total assets: $8,000,000 – Total liabilities: $3,000,000 – Stockholders’ equity: $5,000,000 Using the given information, calculate and analyze the following ratios: a) Gross Profit Margin b) Operating Profit Margin c) Return on Assets (ROA) d) Debt-to-Equity Ratio e) Current Ratio Provide insights and interpretations based on the calculated ratios to assess the financial performance and position of Company XYZ. Consider any additional information that might be necessary for a comprehensive analysis.

Tags: , , , , , , ,