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Corporate Finance Problem - Brinker Company Financials

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Question;Please refer to the Brinker Company Financials to answer the following questions.1) Calculate the 2014 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company?s liquidity position in 2012, 2013 and as projected for 2014? We often think of ratios as being useful to managers to help run the business, to bankers for credit analysis, and to stockholders for stock evaluation. Would these different types of analysts have an equal interest in the liquidity ratios?2) Calculate the 2014 inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. How does Brinker?s utilization of assets stack up against that of other firms in its industry?3) Calculate the 2014 debt ratio, liabilities ? to ? assets ratios, times interest earned, and EBITDA coverage ratios. How does Brinkers compare with the industry with respect to financial leverage? What can you conclude from these ratios?4) Calculate the 2014 price/earnings ratio, price/cash flow, and market/book ratio. Do these ratios indicate that investors are expected to have a high or low opinion of the company?5) Perform a common size analysis and percentage change analysis (2 most recent years). What do these analyses tell you about Brinker?6) Use the extended DuPont equation to provide a summary and overview of Brinkers financial condition as projected for 2014. What are the firm?s major strengths and weaknesses?7) What are some potential problems and limitations of financial ratio analysis?8) What are some qualitative factors that analysts should consider when evaluating a company?s likely future financial performance?

 

Paper#49077 | Written in 18-Jul-2015

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