Financial Analysis for Drd
By: dafina • July 5, 2019 • Coursework • 509 Words (3 Pages) • 1,508 Views
4-1 Discussion: Analysis of Financial Statement
Dafina Lamlli posted Jun 20, 2019 9:07 PMLast edited: Friday, June 21, 2019 12:04 PM EDTSubscribed
Hello class!
2015
% Chg
2014
Current Assets
60,000
120.6%
27,188
Total Assets
83,500
65.3%
50,492
Current Liabilities
41,262
-41.7%
70,854
Total Debt
200
-2.4%
205
Sales/Revenue
53,000
266%
14,480
Cost of Goods Sold
(29,500)
-447.9%
8,478
Inventory
40,000
144.7%
16,341
Net Income/Loss
62,600
272.1%
16,822
Year 2015
Current Ratio
1.45
Debt to Asset Ratio
0.002
Inventory Turnover
-1.04
Return on Sales (Profit Margin)
1.18
Current Ratio
Deep Roots Distillery’s current ratio is 1.45. This financial ratio is calculated by dividing current assets ($60,000) by current liabilities ($41,242). A high current ratio indicates that the firm can pay its liabilities. DRD’s current ratio is below the average, which is 2.0. The company can improve its current ratio by repaying current liabilities, by reducing dividend payments to stockholders to increase cash balance of the firm, or obtaining cash from inventors (Pride, Hughes & Kapoor, 2017).
Inventory Turnover
The average inventory can be found by adding
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