Description
FIN 515 Week 2 DQ 1
Analysis of Financial Statements
Discuss how a financial manager can use financial ratios to make good business decisions.
Good morning! Welcome to Week 2! Let’s start off analyzing Microsoft (MSFT). How does Microsoft compare to its competitors? Please review this website link (or other relevant links):http://finance.yahoo.com/q/co?s=MSFT .
What would you recommend (if anything) be done to improve Microsoft’s financial performance?
If a firm has total assets of $50,000 and a basic earning power ratio of 15%, what’s its earnings before interest and taxes (EBIT)?
Great discussion! $7,500 is the right answer! What does the extended Du Pont equation tell about a company?
If a company has a DSO above the industry average, what can the company do to get its DSO below the industry average?
Please explain how to solve for EBT (Earnings before taxes) given the following information:
Tax rate = 25%
Net income = $12 million.
Also, if EBIT (Earnings before interest and taxes) = $21 million, what would the interest expense equal?
Would you expect a firm’s ROE or ROA to be larger? Please justify your answer.
