Financial Statement Analysis report

  1. Use the company’s most recent Form 10-K to read the debt footnote(s). Answer the following questions and include the answers in your deliverable: Does the company use short- or long-term debt? Does the debt carry covenants that provide protection to creditors? Was there any mention of default or renegotiated covenants? Using the Excel worksheet provided separately, compute the following ratios for three years for the company: Return on equity Times interest earned Current ratio Quick ratio Debt-to-equity ratio Compare the ratios calculated over time for the company. Is the company more or less liquid or solvent? Include the results of this work in your deliverable. Conclude with an assessment about the company’s liquidity or solvency. You should express an opinion about whether the company has an appropriate level and types of debt and whether you expect the company to continue operating with its existing capital structure.