The following table provides selected financial information for eBay Inc. for its fiscal years 2016 and 2015. Current Assets Current Liabilities Total Assets Total Liabilities Shares Outstanding Retained Earnings Stock price per share Sales EBIT 2016 8,875 3,847 23,847 13,308 530 14,959 29.69 8,979 2,325 2015 7,904 2,263 17,755 11,179 741 7,713 27.48 8,592 2,197 Using a word or excel file, follow the template illustrated in the textbook (Exhibit 4.11) to show your work and compute the Altman Z-scores for both years. Below your computation table, briefly discuss any trends and answer the following question: Is the company more or less likely to go bankrupt given the patterns you observe in its Z-scores over time? Upload your file.
The following table provides selected financial information for eBay Inc. for its fiscal years 2016 and 2015. Current Assets Current Liabilities Total Assets Total Liabilities Shares Outstanding Retained Earnings Stock price per share Sales EBIT 2016 8,875 3,847 23,847 13,308 530 14,959 29.69 8,979 2,325 2015 7,904 2,263 17,755 11,179 741 7,713 27.48 8,592 2,197 Using a word or excel file, follow the template illustrated in the textbook (Exhibit 4.11) to show your work and compute the Altman Z-scores for both years. Below your computation table, briefly discuss any trends and answer the following question: Is the company more or less likely to go bankrupt given the patterns you observe in its Z-scores over time? Upload your file.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 17E
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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