General motors financial statement ratios.

b’Subject: Finance’
b’Topic: General motors financial statement ratios.’
b”Write a 3-6 page report evaluating trends in all of the above ratios. Discuss whether your company’s profitability, efficiency, liquidity, and solvency are improving or deteriorating. Suggest ways the company can improve the ratios that show problems. The report should be well written with cover page, introduction, the body of the paper (with appropriate subheadings), conclusion, and reference page. Referencnyzes must be appropriately cited.”

 

Don't use plagiarized sources. Get Your Custom Essay on
General motors financial statement ratios.
Just from $10/Page
Order Essay

Based on formulas in your textbook, compute the following ratios for two years. You may use Excel to compute your ratios.

  2019 2018 Evaluation
Debt ratio (Total Debt/Total Assets) 52,145,000/167,489,000 = 0.31 41,265,000/159,422,000 = 0.30 Strong debt ratios, less than 0.5 meaning most of companies assets are financed through equity. Less risk
Gross profit margin (Gross Profit/Total Assets) 41,531,000/167,489,000 = 24.8% 42,399,000/159,422,000 = 26.6% Strong gross profit margins, 10% is average and anything over 20% is high.
Free cash flow (Operating Cash Flow – Capital Expenditures 12,588,000-2,594,000  = 9,994,000 15,827,000-2,196,000  = 13,631,000 Strong free cash flow, it is considerably positive
Times interest earned (EBIT/Interest Expenses) 19,256,000/1,574,000

= 12.23

13,201,000/1,316,000

= 10.03

Strong times interest earned, 2.5 is typically considered acceptable risk for investors
Accounts receivable turnover (Total Turnover/Average Receivables) 51,921,590/8,724,000  = 5.95 54,203,480/8,025,000 = 6.75 Weak turnover ratio but improving from year to year, higher risk
Inventory turnover (Cost of Goods Sold/Average Inventory) 10,219,000/8,283,000

= 1.23

11,248,000/7,508,000

= 1.5

Weak inventory turnover ratio, indicates overstocked products that are selling slowly, higher risk

 

Prepare a DuPont Analysis of ROE for two years, including computations of

  2019 2018 Evaluation
Return on Sales 5,481/ 131,756

= 4.1%

4,445/ 142,604

=3.1%

Stronger

Quicker

More Liquid

Less Risk

Asset Turnover 122,697/ 228,037

= 0.54

133,045/ 227,339

=0.59

Weaker

Slower

More Liquid

 

Return on Assets 6,732/ 228,037

=2.95%

8,014/ 227,339

=3.53%

Weaker

Slower

Less Liquid

More Risk

Financial Leverage 228,037/ 41,792

=5.46

227,339/ 38,860

=5.85

Weaker

Slower

Less Liquid

More Risk

Return on Equity 6,732/ 41,792

=16.11%

8,014/ 38,860

=20.62%

Weaker

Slower

Less Liquid

More Risk

 

 

Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is:

stronger / weaker

quicker /slower

more / less liquid

more / less risk

Get professional assignment help cheaply

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason may is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Our essay writers are graduates with diplomas, bachelor, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.

Why choose our academic writing service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

 

 

 

 

 

 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Open chat
1
You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 20% with the discount code VICTORY