Financial Ratio Analysis: Capstone Company Performance Review

This discussion post presents a detailed financial ratio analysis of a Capstone company, utilizing data from the Capstone Courier report. The analysis covers various financial ratios, including liquidity, activity, leverage, profitability, and valuation ratios, with calculations provided for each. The student calculates and interprets ratios such as current ratio, quick ratio, debt-to-asset ratio, debt-to-equity ratio, and various turnover ratios to assess the company's financial health. The analysis also includes profitability metrics like gross profit margin and net profit margin, along with valuation ratios such as earnings per share (EPS) and price-earnings ratio (P/E). The conclusion highlights a deterioration in the company's performance compared to competitors, emphasizing decreasing margins, increased expenses, and the need for cost reduction and strategic investment. References include the textbook and the Capstone Courier report.