Analyzing the Financial Health of EA

First of which, is the current ratio. It has been rapidly declining since 2000. To me this indicates that there is a liquidity issue. Each year their trade debt increase exceeds the increase of net income for the company. As a result, the working capital has taken a nosedive from $58,650 in 2002 to only $5,466 in 2003.

Increase in current liabilities Substantial increase in current liabilities weakened the company’s liquidity position. Its current liabilities were US$2,063.94 million at the end of FY2010, a 48.09% increase compared to the previous year. However, its current assets recorded a marginal increase of 25.07% - from US$1,770.02 million at the end of FY2009 to US$2,213.72 million at the end of FY2010. Following this, the company’s current ratio declined from 1.27 at the end of the FY2009 to 1.07 at the end of FY2010. A lower current ratio indicates that the company is in a weak financial position, and it may find it difficult to meet its day-to-day obligations.

Headquartered in Santa Monica, California, Activision Blizzard, Inc., is the world 's most successful standalone interactive entertainment company. Their portfolio includes some of the biggest franchises in all of entertainment. Their entertainment network has nearly 500 million monthly active users in 196 countries, and we’re continuing to expand our capabilities across new platforms, genres, audiences and geographies. Their company consists of many teams:

Liquidity ratio. The firm’s liquidity shows a downward trend through time. The current ratio is decreasing because the growth in current liabilities outpaces the growth of current assets. The quick ratio is also declining but not as fast as the current ratio. From 1991 to 1992, it only decreased 0.35 units while the current ratio decreased 0.93 units. Looking at the common size balance sheet, we also see that the percentage of inventory is growing from 33% to 48% indicating Mark X could not convert its inventory to cash.

The Walt Disney Company, also known as Disney or DIS, has recently been expanding and growing within the last three years more than ever which is why we would invest in this company. According to Disney’s income statement, revenue has been increasing since 2014 – with an average increase of $3,500,000,000 per year. 2014 was a pivotal year for the Walt Disney Company. Along with their revenue, The Walt Disney Company saw a growth in gross profit. In the year 2014, the company gross profited $22.3 billion, and the amount increased to $25.6 billion in year 2016. For determining a company’s future financial health, a key indicator for success would be examining their gross profit. Gross profit is the company’s financial gain/loss after deducting

Liquidity In analyzing liquidity of the company, the current ratio is not very telling of a falling company. The company increased its ratio throughout the period of the income statement thus building upon its company assets and allowing for a 6-1 ratio of assets over its liabilities. This implies the company is still able to operate sufficiently even though it did not make its optimum current ratio of about 8-1. However, when one takes the inventory out of the equation with the quick ratio, the numbers show the true strength of short term liquidity. The numbers are still good, and do not indicate failure – but are

Overall the long term solvency position of the company satisfactory and less risky, because managerial policies kept the repercussion of recession ( increase in interest rate) in mind and hence reduced its reliance on debt financing This gives it a secure position from the point of view of long term creditors.

The liquidity position of a company can be evaluated using several ratios which evaluate short-term assets and liabilities and a firm’s ability to settle short-term debts (Gibson, 2011). These ratios can provide insight into a firm’s ability to repay its debts in the short term (Gibson, 2011). In turn they suggest a firm’s capacity for debt-satisfying capabilities into the future (Gibson, 2011). This paper will use financial statement data as cited in Gibson (2011) from 3M Company (3M) to better understand liquidity measures to evaluate a firm’s total liquidity position. The following paper will focus on various liquidity calculations, their meaning, and their interpretation relative to 3M. Finally, an overall view of 3M’s liquidity

Lawsons 2010 and 2011 current ratio are above the industry average (1.8:1) however in 2012 the current ratio falls below the industry average at 1.55:1 and than again in 2013 to 1.02:1. This indicates that the company’s ability to pay its debts is

During the financial analysis of Norfolk Southern, the entity’s liquidity and solvency were assessed. Liquidity is the measure of

In addition, the financial statements demonstrate that liquidity remains strong. The horizontal balance sheet illustrates that cash and cash equivalents rose 639% over the three-year period beginning with fiscal year 2002. Furthermore, short-term investments increased 1839% over the same period.

Our choices led to a constant increase in net income over the three years. Short term debt increase by approximately 100% percent but steadily reduced over the next three years. We were happy with the positive growth of the company and the fact that we were able to pay off most of the initial short term funding required by the increase in working capital requirement. Overall the current situation of the company in 2018 is good, although the total value created is less than 20% of that created in phase 1. From this we learned that the value of the firm can be significantly increased more through a reduction in working capital requirement than through increasing the firm’s sales and net income.

The long-term liquidity risk ratio such as LT debt/Equity, D/E, and Total Liabilities to Total Assets all show a decline from year 2005 due to the repayment of debts. The interest coverage ratio also shows a healthy number of 29.45 in comparison to the industrial average of 15.04 indicating a high ability to pay out its interest expense. Such a low relative risk is not surprising due to the nature of its business depending heavily in R&D development and large intangible assets.

It pepsico company has sufficient liquidity to generate cash and long-term debt financing and has the liquidity in the management discussion and analysis of financial condition and that all these Morod in item 7 of the company .

The purpose of this memorandum is to provide organization’s financial analysis by identifying our position and performance as well as to assess Riordan Manufacturing’s future financial performance. Our team has evaluated the three broad areas of profitability, risk and source and uses of funds. The liquidity ratios are the following: the current ratio is 4.72 which mean that for every dollar in current liabilities, there is a $4.72 dollars in current assets. Compared with the