Financial Analysis

Financial Analysis - Financial Analysis Summary This report...

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Financial Analysis Summary This report goes into detail about the current financial condition of CanGo as well as introducing recommendations and suggestions to help CanGo better understand their current financial reports. CanGo will then be able to make better financial decisions based on their current financial position. The analysis will also help CanGo make informed decisions concerning net profit margin , return on assets and return on equity based off the current financial statements. Net Profit Margin Net Profit Margin = Earnings after Taxes / Sales December 31, 2009 Net Income $5,486,000 Sales $50,000,000 Net profit margin 11.0% The profit margin tells you how much profit a company makes for every $1 it generates in revenue or sales . Profit margins vary by industry, but all else being equal, the higher a company's profit margin compared to its competitors, the better. CanGo has an 11% net income after all expenses are paid or 11 cents from every dollar is profit. Return on Assets Return on Assets = (Gross Profit - Operating Expense) / Total Assets 2009 Net Income $5,486,000 Total assets
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This note was uploaded on 10/04/2011 for the course FIN AC FI 504 taught by Professor White during the Spring '10 term at DeVry Addison.

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Financial Analysis - Financial Analysis Summary This report...

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