ACE Scholarships Financial Ratios and Analysis According to the Google’s Financial Analysis Sample, finish the ACE Scholarships Financial Ratios Calculate

ACE Scholarships Financial Ratios and Analysis According to the Google’s Financial Analysis Sample, finish the ACE Scholarships Financial Ratios Calculate and Analysis.

Step 1:Calculate each ratio.

Step 2:Evaluate each ratio (or set of ratios).

Step 3:Provide an overall assessment.

Step 4:Make a recommendation.

Please note that some ratios may not be relevant.

Assume all financials are current (as of Dec 2019), even though they range from Dec 2017 to Dec 2018. (Use the Charity Navigator site below.)

www.charitynavigator.org Google’s Financial Analysis: Sample Answers
Step 1: Calculate each ratio.
Step 2: Evaluate each ratio (or set of ratios).
Step 3: Provide an overall assessment.
Category
Historical: 2003-2004
Competitor: 2004
Liquidity
Positive
Strength
Asset Utilization
Negative
(AR = Neutral)
Strength
Debt Management
Positive
Strength
Profitability
Negative
(Margins = Neutral)
Strength
(Margins = Weakness)
Market
Positive
Strength
During the 2003-2004 period, Google experienced positive trends with respect to its
liquidity, debt management, and market ratios; however, asset utilization and profitability
declined. Google maintained its competitive position relative to Yahoo, outperforming
Yahoo in each category—liquidity, asset utilization, debt management, profitability, and
market. (Google’s profitability margins were weaker than Yahoo, however.) Investor
ratings suggest a vote of confidence in the company’s performance. That is, investors
believe that Google has more profit potential and/or is less risky than Yahoo.
Step 4: Make a recommendation.
Although Google is strong financially overall, it needs to improve its performance in a
few areas. Google needs to focus on its asset utilization and profitability. It should
consider reducing its assets to sales ratio and streamlining its cost structure.
Note:
You were provided limited information for this exercise—ratios for the five primary
financial categories. In an actual analysis, you would have access to the company’s
financial statements. This information would allow you to provide a more detailed
discussion of the company’s performance; for example, you could discuss the company’s
sales and sales growth rates. Additionally, you would have a better understanding of the
company’s cost structure, and you could offer an explanation for the decreased asset
utilization.
Dr. Dodd-Walker
Financial Ratio Example: Google
Google: Financial Ratio Historical Analysis1
Ratio
Liquidity
Current Ratio
Quick Ratio
Asset Utilization
Inventory Turnover
AR Turnover
Fixed Asset Turnover
Total Asset Turnover
Debt Management
Debt Ratio
TIE*
Profitability
Gross profit margin
Operating Margin
Net Profit Margin
BEP
Return on Assets
Return on Equity
Market Value
Price Earnings Ratio
1
2
2003
2004
Evaluation
Google: Financial Ratio Competitor Analysis 20042
6.95
6.95
7.91
7.91
P
P
7.94
7.72
1.15
–7.94
5.14
0.96
–N
N
12.77%
1133.00
11.60%
755.33
P
N
54.29%
20.42%
12.24%
23.43%
14.04%
16.10%
54.29%
20.42%
12.51%
19.65%
12.05%
13.63%
——N
N
N
Ratio
Liquidity
Current Ratio
Quick Ratio
Asset Utilization
Inventory Turnover
Accounts Receivable Turnover
Fixed Asset Turnover
Total Asset Turnover
Debt Management
Debt Ratio
Times-Interest-Earned
Profitability
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
BEP
Return on Assets
Return on Equity
85.00
86.44
P
Market Value
Price-Earnings Ratio
Evaluation: Indicate positive, negative, or no trend.
Evaluation: Indicate strength, weakness, or neutral.
Google
Yahoo!
Evaluation
7.91
*7.91
3.46
3.46
S
S
–7.94
5.14
0.96
–7.39
0.7
0.39
S
S
S
0.12
755.33
0.23
***
S
n/a
54.29%
33.45%
12.51%
63.67%
33.66%
23.49%
W
–W
12.05%
13.63%
9.15%
11.82%
S
S
86.62
58.97
S
*Current and Quick Ratios are the same because there is no inventory.
**Neither company shows any short-term debt.
***Yahoo!’s financial statements do not indicate any interest expense.
ACE SCHOLARSHIPS FINANCIAL RATIOS
Financial Ratios: Historical Comparison
Citation
2017
2018
2019
Assessment
Liquidity Ratios
Current Ratio
Quick Ratio
Asset Utilization Ratios
Inventory Turnover
DSI
AR Turnover
DSO (ACP)
Fixed Asset Turnover
Total Asset Turnover
Debt Management Ratios
Debt Ratio
TIE
Profitability Ratios
Gross Margin
Operating Margin
Profit Margin
BEP
ROA
ROE
Market Ratios
P/E
P/CF
M/B
Assessment Notation: P=Positive Trend, N=Negative Trend, Dash=No Change.
Financial Ratios: Competitor Comparison
Citation (give the website link here)
Children of
Fallen
American
ACE
Patriots
Technion
Scholarships Foundation Society
Case Year 2019
Industry
Liquidity Ratios
Current Ratio
Quick Ratio
Asset Utilization
Ratios
Inventory Turnover
DSI
AR Turnover
DSO (ACP)
Fixed Asset
Turnover
Total Asset Turnover
Debt Management
Ratios
Debt Ratio
TIE
Profitability Ratios
Gross Margin
Operating Margin
Profit Margin
BEP
ROA
ROE
Market Ratios
P/E
P/CF
M/B
Assessment Notation: S=Strength, W=Weakness, Dash=Neutral.
Assessment
Internal Environment: Financial Analysis
Category
Liquidity
Asset Utilization
Debt Management
Profitability
Market
Historical: 2017-2019
Competitor: 2019

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