i have part of this assignment done already

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  • I completed part of this already - 
  • Use www.msn.com to find financial statements for any "for profit" company in the computer hardware industry.
    1. enter the company symbol
    2. go to menu on left side of screen
    3. go to financial results
    4. go to financial ratios
  • Complete a ratio analysis for that company's last year's financial data. At a minimum, list and discuss the company performance vs. its industry average for these 4 ratios:
    • Profit as percent of sales
    • Current ratio
    • Debt to equity ratio
    • ROE
  • Comment on
    • how these ratios depict the financial health of this company as compared to the industry average.
    • what the company might do to get better in each area.

Given the metrics your accountant told you are evaluated in nonprofits, you asked her to educate you on how to assess the health of a nonprofit. You asked her the following:

  • Find and review the financial statements of any nonprofit symphony
  • In a report of 500–600 words, comment specifically on the following:
    • What is the major source of the change in net assets that occurred in 2007 from the change that occurred in 2008? In your opinion, is this trend likely to continue? Why/why not?
    • If we assume that program expenses of the symphony should generally vary with ticket revenues, do they vary between 2007 and 2008? What could your answer indicate may be happening?
    • Is investment income a significant part of total sources of revenue in 2007 or 2008? Does this indicate a major concern about the reduction in the fair market value of investments between 2007 and 2009?
    • Based on your analysis above and any other analyses, comment on the future economic viability of this organization.
  • HERE IS THE PART ALREADY DONE

In this paper I will look at the HP Inc. financial data for the past year 2015.and perform a ratio analysis specifically defining the company performance in terms of profitability ratio, current ratio, debt to equity ratio and return on equity.

Profitability ratio: Net income/Net revenue * 100= 4554/103355*100 =4.41%, industries 22.23%

 Current ratio: current assets/current liabilities = 51,787.0/ 42,191.0=1.23, industries 2.11

Debt to equity ratio: total debt/HP stakeholders equity= ((2,885+21780)/27768) = 0.89, industry, 0.76.

Return on equity: Net income/Total equity = (4554/ ((26731+27768)/2) =16.71%, industry, 17.6%. (All data sourced from www.msn.com ).

 

The analysis of the above stated ratios reflect that HP Inc. with regards to profit as a percentage of sales the company sales is made up of 4.41% net income, and in these regard in comparison with the industry percentage it is reflected that the company is not performing so well in terms of its management of expenses relative to net sales as the industry average is 22.23%. Thus it is requisite that the company works to generate more revenue and also cut on expenses to have a better results. The company has 1.23 more current assets than current liabilities and thus it is in a better financial position and can meet its current liabilities easily. But in comparison with the industry average the company is under performing as the industry average is 2.11, (Morningstar ,Inc. 2016), hence to better the result the company has to improve its collection of accounts receivables. The company with regards to its debt to equity ratio appears to reflect the company to be a high risk company, most especially when compared to the industry average as the company debt ratio reflects that there are more than half as many liabilities than equity as it is at 0.89, in that the assets of the company are funded almost 1to 1.whereas the industry average is at 0.76, hence the company has to improve its performance by reducing its dependence on debt financing. Return on equity is showing the company performing better as even though at 16.71% and below the industry average of 17.6%, the firm is able to use money provided by the shareholders to grow and generate profits (MyAccountingCourse.com, 2015).

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