Assignment 3: Financial Analysis Of Cango's

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Financial Analysis
Profitability vs. Solvency
The charts below show some of the most important aspects of the financial analysis. As you can see, CanGo is around the same ranges as Amazon and iTunes under the profitability and solvency ratios. This means that CanGo’s return on net sales is better than Amazon, however, return on net sales is not when compared to Amazon. The debt ratio is another way to see how well a company is managing their finances. As shown in the Profitability VS. Solvency bar chart, we can see that CanGo is doing their best out of the 3 companies to keep their debt ratio low.

Current Ratio vs. Acid (Quick) Ratio
The current ratio vs. acid (quick ratio) below shows that CanGo has the best capability of paying all debts
…show more content…
CanGo has the potential to go to the next level but must conduct some strategic planning in order to right the ship. It’s important to have a solid plan in place and not run the company from the seat of pants, this should include both short and long term goals to encompass the grand scale and the micro scale. In the grand scale, CanGo is in the ecommerce business which means they are global by nature since the internet has no finite location. In the micro scale, strategic planning can be used to give CanGo a sense of direction. Every employee will know the vision, purpose, and plan for CanGo. Strategic planning will assist in creating and communicating these long and short term goals to CanGo …show more content…
CanGo currently struggles with tracking inventory and delivery. A barcoding system on each product housed or shipped will help ensure proper tracking. The benefit will be three fold, it will cut down on costly errors regarding too many items being ordered, it will increase customer satisfaction with customer now being able to track from order to doorstep delivery, and it should decrease shipping time as it’s easier to locate products. This doesn’t have to be an expensive overall just a simplistic system that allows for some efficiency gains. CanGo is up and coming company with these recommendations being executed, we feel confident that CanGo will grow.
Conclusion
After seven weeks of review and observations of CanGo, Stealth Applied Concepts has provided a SWOT analysis, market analysis, competitive analysis and financial analysis of the company. CanGo has potential of growing and becoming a well-known, successful company like Amazon and iTunes. As stated in the strategic planning recommendations, one of the most important plans CanGo will need to do is to create a mission statement and vision statement, introduce new products within the company and update technology to improve customer

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