Financial Statement Analysis Paper

Words: 1154
Pages: 5
Open Document
Running head: FINANCIAL STATEMENT ANALYSIS PAPER

Financial Statement Analysis Paper
Principles of Accounting
ACC/300
Mr. John Opincar
June 24, 2009
Abstract

Landry’s has become a successful company over the years because the customers enjoy the specialty items that they serve on their menu. It has become a company that we enjoy taking our families out to dinner, celebrating birthday parties and certain special events. However, this paper will complete the financial analysis for the reported years of 2002 and 2003. Upon review of the financial statements will find out the financial performance of Landry’s and show the analysis. The ratio analysis of Landry’s will be reviewed as well and in details discussed from their …show more content…
(Phillips, Libby, & Libby, 2005, p580/ch13) Landry’s asset turnover is very impressive. In 2002 it was 1.11 which indicates the restaurant had a high profit margin in 2002. In 2003 Landry’s asset turnover decreased to 1.09, which indicates a slight increase in profit margin from 2002. Companies with low profit margins tend to have high asset turnover, those with high profit margins have low asset turnover. (Investopedia,) The low asset turnover indicates that Landry’s has a good pricing strategy. Landry’s low asset turnover also indicates the franchises growth in revenue in relation to sales. Current cash debt coverage is a cash-basis ratio that accounts for the changing liabilities and cash flows that a company experiences during the course of a time period. Current cash debt coverage ratio is a measure of liquidity (Investor Words, n.d.). The ratio is calculated by taking the net cash provided by operating activities and dividing it by the average current liabilities. The average current liabilities are determined by adding the current year’s and previous year’s current liabilities and dividing them by two. In the case of Landry’s Restaurants in 2002 the current cash debt coverage was 90% and in 2003 the current cash debt coverage was 79%. The cash debt coverage ratio shows the percent of debt that current cash flow of a
Show More

Related Documents: Financial Statement Analysis Paper

Essay mgmt 280

bignerds.com/tag/xacc-280-final-project-financial-analysis/1/ Review the annual reports for PepsiCo, Inc. and The Coca-Cola Company in Appendixes A & B, especially the Consolidated Statements of Income and the Balance Sheets on pp. A4, A6, B1, & B2 of Financial Accounting. Write a 1750- to 2,050-word paper in APA format with citations and references that provides a financial comparison of the two companies and your recommendations to improve the financial status of each. Include the following:…

Words 306 - Pages 2

Essay on Ratio and Financial Ratio Analyisis

Ratio and Financial Statements Analysis Kimberly Y. Gruber University of Maryland University College Dr. Sunando Sengupta 07/25/2013 Turnitin Score: 23% Executive Summary The purpose of this paper is to examine ratio and financial statement analysis. Such analysis is a useful tool for managers and stakeholders to evaluate a company’s financial health in order to identify opportunities for growth and areas of weakness so as to institute corrective measures. Financial statements are used…

Words 1715 - Pages 7

XACC 280 Week 9 Final Project Financial Analysis Essay

paperwork of XACC 280 Week 9 Final Project - Financial Analysis you will find the answers on the next questions: Business - Accounting Review the annual reports for PepsiCo, Inc. and The Coca-Cola Company in Appendixes A B, especially the Consolidated Statements of Income and the Balance Sheets on pp. A4, A6, B1, B2 of Financial Accounting . Write a 1750- to 2,050-word paper in APA format with citations and references that provides a financial comparison of the two companies and your recommendations…

Words 535 - Pages 3

Essay about Method Analysis

In a 2 to 3 page paper, evaluate the three methods of analysis: horizontal, vertical, and ratio as explained in Chapter 9 of your textbook. Summarize each method, and discuss how the financial information is used to make a particular decision. Provide a scenario in a health care situation in which a given method of analysis might be used. Horizontal: "Horizontal analysis, also called trend analysis, refers to studying the behavior of indi- vidual financial statement items over several accounting…

Words 937 - Pages 4

Accounting Practices Essay

Methods of Analysis Courtney J. Anthony-Brown ACC 281 Accounting Concepts for Health Care Professionals Edward Kaplan August 24, 2014 Financial statements are used as a benefit to an investor and a creditor. These statements help both make informed decisions about lending money and buying stock (Epstein & Schneider, 2014). Financial statements can also benefit management in a health care organization by discovering trends and finding things that may need to be changed to improve…

Words 914 - Pages 4

Analysis in Accounting Essay

Analysis in Accounting Katherine E Candelas Ashford University Abstract There are all kinds of information that is given in the world of accounting. Companies have to look at all many different forms of financial statements. In order for the company to understand them they have to find the different ways of utilizing analysis in the company. There are many different types of analysis that can be used in the work force. From horizontal to ratio to vertical you will know how to utilize it when…

Words 708 - Pages 3

Wk 1 Financial Statement Paper

Financial Statement Paper Alison Green ACC/290 February 27, 2013 Ilaine Newby Financial Statements Financial statements are used to determine the financial welfare and prospective earnings of an organization. These statements are often used by accountants, business owners, investors, and employees. In this paper, one will discuss the four basic financial statements: balance sheet, income statement, statement of retained earnings, and statement of cash flow. One will also describe the purpose of…

Words 874 - Pages 4

Research Paper On Budgeting

TELEPHONE: 493-1976 INTERNET: garciah@webster.edu SEMESTER: Fall I 2002 SITE: Ft. Sam Houston 1. Course Description: This course includes financial analysis as it relates to the budgeting process. Students examine short- and long-term budgeting, including such topics as analysis, control, and budgeting of cash flow; ratio analysis, forecasting, and operating budgets; and time value of money as used in capital budgeting. Students who have completed BUSN 5600 and FINC 5000 or equivalents…

Words 1554 - Pages 7

Essay on Balance Sheet and Efw Help Pdf

Write a paper of no more than 700 words discussing the four different types of financial statements. Explain the information provided by each financial statement and include your responses to the following questions: Which financial statement, or statements, would be of most interest to investors? Which financial statement, or statements, would be of most interest to creditors? Which financial statement, or statements, would be of most interest to management? Format your paper consistent…

Words 435 - Pages 2

Advanced Financial Statement Analysis - Leon's vs the Brick Essay

Advanced Financial Statement Analysis Assignment #1 Comprehensive Analysis of Financial Performance Leon’s Furniture Limited and The Brick Income Fund Comprehensive Analysis of Financial Performance Assignment #1 - Leon’s versus The Brick TABLE OF CONTENTS Page # Table of Contents …. Abstract ….. Report Outline ….. Introduction ….. Ratios – Financial Analysis ….. Summary ….. Bibliography ….. Appendices (A – J) ….. 2 3 4 5 6 23 25 26 Advanced Financial Statement Analysis Comprehensive…

Words 4513 - Pages 19