Briefly discuss Fibertech’s financial statements.

Question

Briefly discuss Fibertech’s financial statements.

(Please comment on its financial position, profitability, liquidity and whatever relevant information you can interpret from the financial statements.)

Answer 1

You can start off by conducting a ratio analysis:

eg:

cash:

inventory turnover= COGS/ inventory

accounts receivable turnover= sales/ AR

accounts payable turnover= COGS/ AP

cash conversion cycle

profitability:

gross margin= (sales-COGS)/ sales

net profit margin= net profit/ revenue

liquidity:

current ratio: current assets/ current liability

quick ratio: (current assets- inventory)/ current liability