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ACC 307 Final Project Part II: Ratio Analysis Report Amy Marshall Southern New Hampshire University
Peyton Approved is a small dog treat bakery that serves a growing niche of customers that are seeking all-natural hypo-allergenic dog treats for their pets. Based on the financial statements of Peyton Approved, we can analyze some financial ratios and gain understanding of the company’s financial position. Financial ratios shows relationships between a company’s financial accounts. Ratio analysis are tools that reveal a business’s strengths and weaknesses, and also make it possible to compare companies of different sizes within the same industry. Beginning with Peyton Approved working capital, we can see that this small company has a lot of current assets to work with. With a fairly short production cycle, it is not necessary to have this much working capital lying around in order to meet their short term obligations. Next, we will look at the 2016 quick ratio of 2.2%, which tells us that Peyton Approved is more than capable of paying its current liabilities with its current assets. Compared to industry benchmarks.

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