Earnings per share (EPS) is an accounting ratio used to indicate the profitability of a company. In 2018, Alita's Company had an EPS of 1.25. However, in 2019, the EPS was 0.54. What does this fall in EPS indicate? Also, comment
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Earnings per share (EPS) is an accounting ratio used to indicate the profitability of a company. In 2018, Alita's Company had an EPS of 1.25. However, in 2019, the EPS was 0.54.
What does this fall in EPS indicate? Also, comment on the performance of the company.
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Solved in 3 steps
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- The following data (in millions) were taken from the financial statements of Costco Wholesale Corporation: a. For Costco, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income b. Comment on the results of your horizontal analysis in part (a). c. Based upon Exercise 2-23, compare and comment on the operating results of Target and Costco for the recent year.The condensed financial statements of Ivanhoe Company for the years 2020-2021 are presented below: (See Images) Compute the following financial ratios by placing the proper amounts for numerators and denominators. (Round per unit answers to 2 decimal places, e.g. 52.75.) (a) Current ratio at 12/31/21 $ $ (b) Acid test ratio at 12/31/21 $ $ (c) Accounts receivable turnover in 2021 $ $ (d) Inventory turnover in 2021 $ $ (e) Profit margin on sales in 2021 $ $ (f) Earnings per share in 2021 $ (g) Return on common stockholders’ equity in 2021 $ $ (h) Price earnings ratio at 12/31/21 $ $ (i) Debt to assets at 12/31/21 $ $ (j) Book value per share at 12/31/21 $Pare Plumbing Products Ltd. reported the following data in 2018 (in millions): Data table 2018 Net operating revenues. . . . . . . . $32.7 Operating expenses. . . . . . . . . . 28.2 Operating income. . . . . . . . . . . . 4.5 Nonoperating items: Interest expense. . . . . . . . (1.1) Other. . . . . . . . . . . . . . . . . (0.1) Net income. . . . . . . . . . . . . . . . . . $3.3 Total assets. . . . . . . . . . . . . . . . . $200.0 Total stockholders' equity. . . . . . 74.0 Compute Pare's leverage ratio, debt ratio, and times-interest-earned ratio, and write a sentence to explain what those ratio values mean. Use year-end figures in place of averages where needed for the purpose of calculating the ratios. Would you be willing to lend Pare $1 million? Why or why not? (Enter all amounts in millions.) First, compute Pare's leverage…
- You are given the financial statements of a company for over the 6-year periods (2016 –2021). Considering 2016 as the base year, compute the trend index for the following items:a. Revenue, cost of goods sold, total expenses and net earnings. Comment on the trends of each of the items.b. Total assets, total liabilities and shareholders’ equity. Comment on the trends of each of the items.c. Cash flow from operation, cash flow from investing, cash flow from financing and closing cash balances. Comment on the trends of each of the items.The following information is available for Tanaka Corporation. Compute earnings per share for 2018 and 2017 for Tanaka, and comment on the change. Tanaka's primary competitor, Browning Corporation, had earnings per share of $1 per share in 2018. Comment on the difference in the ratios of the two companies. (b) Compute the current ratio and debt to assets ratio for each year, and comment on the changes. (c) Compute free cash flow for each year, and comment on the changes. 2018 2017 Current assets $ 54,000 $ 36,000 Total assets 240,000 205,000 Current liabilities 22,000 30,000 Total liabilities 72,000 100,000 Net income 90,000 50,000 Net cash provided by operating activities 100,000 56,000 Preferred dividends 6,000 6,000 Common dividends 3,000 1,500 Expenditures on property, plant, and equipment 27,000 12,000 Shares outstanding at beginning of year 40,000 30,000 Shares outstanding…These are the current ratios for Cisco Inc. for the 2018 and 2017 years. Based on these numbers, how well or poorly is the company doing?