BUSN 5200 Assinment week 4



BUSN 5200 Assinment week 4

For Week 4, please complete the following for Joe’s
Fly-By-Night Oil Company, whose financial statements are shown below:


• Prepare a ratio analysis
for the fiscal year ended Dec 31, 2012.
Organize your analysis per the following outline:

(1) Liquidity

– Current ratio

– Quick ratio

Comments on liquidity

(2) Asset management

– Total Asset turnover

– Average collection period (ACP)

Comments on asset management

(3) Debt management

– Debt ratio

– Times interest earned

Comments on debt management

(4) Profitability

– Net profit margin

– Return on Assets (ROA)

– Return on Equity (ROE)

– Extended Du Pont equation

Comments on profitability to include your comments on the sources of ROE

revealed by the Du Pont equation

(5) Market value ratios

– PE ratio

– Market to book ratio

Comments on the market value ratios

the purposes of this exercise, assume the following data for Joe’s Fly-By-Night

Stock price on Dec 31, 2012…$50.00

Number of common shares
outstanding on Dec 31, 2012…1,000


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