How has laiho profitability changed during the last year

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Laiho Industries' common stock has increased in price from $14.75 to $17.25 from the end of 2001 to the end of 2002 and its common shares outstanding increased from 9 to 10 million shares during that same period. Laiho has annual lease payments of $75,000 (which are included in operating costs on the income statement), but no sinking fund payments are required. Now, answer the following questions. Using Laiho Industries financial statements as given in the Module 2 spreadsheet problem, perform a ratio analysis for 2001 and 2002. Consider its liquidity, asset management, profitability, and market value ratios. (Hint: If you worked the Module 2 problem and saved your file, you can rename that file something like Prob-03 and then perform the necessary calculations with the data generated for Module 2. This will save you from having to re-enter data).

Question a. Has Laiho's liquidity position improved or worsened? Explain.

Question b. Has Laiho's ability to manage its assets improved or worsened? Explain.

Question c. How has Laiho's profitability changed during the last year?

Question d. Perform an extended Du Pont analysis for Laiho for 2001 and 2002.

Reference no: EM132575458

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