Case Study: Bravo Consulting Inc.

Decent Essays
Bravo Consulting Inc has made a detailed financial analysis in order to evaluate Cango’s performance and current financial position compared to
Amazon, one of Cango’s biggest competitors. Bravo consulting decided to use the Ratio Analysis in order to analyze the process of the financial statements by computing ratios, and in this way inform the possible changes in the financial condition of Cango.. This Ratio Analysis will allow Bravo
Consulting Inc to evaluate the key performance indicators like liquidity, solvency, and profitability of Cango. Such Financial Analysis will disclose
Cango’s ability to earn income, identify its strength and weakness’s, and will also evaluate the short and longer term prospects of Cango.
CanGo had an Inventory Turnover Ratio, for instance, is .28
Amazon currently has an Inventory Turnover Ratio of
…show more content…
If ratio is low, it may indicate that a company may be overstocking or overbuilding its inventory or that it may be having issues selling products to customer. If ratio is high then inventory is sold quickly and is good for the company. The higher the ratio the better.
CanGo’s Debt to Equity Ratio, meanwhile, stands at .67
Amazon debt equity ratio is
Debt/Equity Ratio measures how much of the company is financed by its debtholders compared with its owners. If the ratio is high then the company has a ton of debt. If the ratio is low then the company has low debt. The lower the ratio the better, it is less risky.
CanGo’s Current Ratio is 5.38
Amazon current ratio is
Current Ratio measures the company's ability to pay back its short-term liabilities with its short-term assets. If the ratio is low under 1 that may indicate that the company is not in good financial health. If the ratio is high then the company is in good shape to pay its obligations. The higher the ratio the better.
CanGo recorded a Net Profit Margin of .8

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