Question

2018 2019 2018 2019 2018 2019 1584 4600 2983 2717 2476 241 7024 4494 6399 795 5829 1735 5674 3442 2232 1470 Revenue COGS Gross Profit EBITDA Taxes Net Income Total Assets Equity Current Assets Current Liabilities Inventory Long-Term Debt 960 5255 3084 3145 873 221 1298 176896 144924 31972 7962 6522 1440 275936 13442 62923 53604 10271 208890 125665 102953 22712 2801 345 2455 196023 41017 24178 6611 2982 148394 179083 144249 34834 15990 4309 11681 244587 89999 91387 85373 13799 69215 185655 149543 36112 20163 11258 8905 253563 134139 141579 47668 79052 71755 » The balance sheet items may not balance perfectly (they may be out S1) due to rounding error » USE EXCEL to calculate the solutions and do the math - calculators may throw off your rounding » Submit percentages as the percentage followed by two decimals. A number that appears as.04567 in excel should be submitted as 4.57% Responses will be marked correct if they are within 5% of the answer I calculated in Excel (Questions on next page) 1. 2. Which company has the best liquidity (highest current ratio) in 2019? Which company does the best job generating profits for shareholders in 2019? (ROE)

Answer 1

1.which company has the best liquidity ( highest current ratio ) in 2019?

Ans: Current ratio is calculated by dividing current assets by current liabilities

current ratio = current assets / current liabilities

in 2019 current ratios are

for company 1 - 8.05 times

for company 2 -3.66 times

for company 3 -2.97 times

therefore company 1 has best liquidity in 2019 with current ratio of 8.05 times.

2.which company does the best job generating profits for shareholders in 2019 ? (ROE)

Ans: the company with highest ROE is said to be doing best job generating profits for shareholders

ROE is calculated by dividing net income by shareholders equity

ROE = (net income/ share holders equity )*100

In 2019 ROE(%) are

for company 1 - 5.36%

for company 2 -5.99%

for company 3 - 6.44%

therefore company 3 has best job generating profits for shareholders in 2019 with ROE of 6.44%

C24 2 2018 2019 2018 2019 2018 2019 5674 3 REVENUE 4 COGS 5 GROSS PROFIT 6 EBITDA 7584176896125665 179083185655 4600 144924 102953 144249 149543 2983 319722271234834 36112 27177962 2232 1470 28011520163 7 TAXES 510 2476652 345 4309 9602411440 8 NET INCOME 9 TOTALASSETS 10 EQUITY 11 CURRENT ASSETS 12 CURRENT LIABILITIES 8905 7024 275936 196023 244587 253563 449413442 4101789999134139 63996292324178 91387 141579 661185373 47668 2982 1379979052 69215 71755 245511681 3084 3145 873 221 et 13 INVENTORY 14 LONG TERM DEBT 15 795 53604 582910271 12981735 208890148394 CURRENT RATIO CURRENT 16 ASSETS/CURRENT LIABILITIES 17 18 ROE-NET INCOME/EQUITY 19 20 21 8.05 3.66 2.97 5.36 5.99 6.64 23 24 25% 26 27 28 11-4 İHİ Sheet1 . Sheet2 tsheet3 Ready

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