financial analysis case 3

financial analysis case 3 - Part VI: Financial Analysis...

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Part VI: Financial Analysis These are the financial ratios for XM radio for the year 2006. These show that this company is in very bad financial conditions. Profitability Ratio : XM Return on total assets Profit after taxes + interest (718,872)+ 21,664 -0.3788 total assets 1,840,618 Return on Stockholders’ equity Profit after taxes -718872 -1.807 total stockholders’ equity -397880 Earnings per share profits after taxes -718872 -0.00345 number of shares of 208,249,188 common stock outstanding Liquidity ratio: XM Current ratio Current assets 432,658 0.6231 current liability 694,322 working capital current assets- current liability 432,658 - 694,322 -261,664 Leverage ratio :XM debt to asset ratio total debt 1,300,624 0.7066 total assets 1,840,618 debt to equity ratio total debt 1,300,624 -3.27 total stockholders’ equity -397,880 long term debt to long term debt 1,286,179 -3.23 equity ratio total stockholders’ equity -397,880
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Others: XM Internal cash flow after tax profit + depreciation -718872 +168880
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financial analysis case 3 - Part VI: Financial Analysis...

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