The balance sheet highlights the financial condition of a company and is an integral part of the financial statement. Through the analysis of the company 's balance sheet, it can reveal the company 's ability to pay short-term debt, the company’s operating stability, the size of the operational risk, and the company’s management overall.
The short term debt paying ability can be concluded after analyzing Bob Evans’ annual balance sheet and quarterly balance sheet. According to the 2015 April’s balance sheet (see Table 2), the total current assets are 124,195,000 dollar, but the total current liabilities are 153,092,000 dollar. Based on the ratio:
Quick Ratio = (Current Assets - Inventories)/Current Liabilities
The Bob Evans quick ratio is 0.65, which is lower than 1. That means Bob Evans cannot afford the short term liabilities. Bob Evans should try to negotiate with obligations to pay credit or borrow money from the bank to solve this dilemma. …show more content…
The total revenues did not change dramatically in recent years. They basically stayed in the range from 1,330,000 thousand to 1,350,000 thousand. The company did well in 2015 and generated 1,349,190 thousand which was a 1.55% increase to 2014 and 1.42% increase to 2013. Its cost of revenue accounts shows a rising trend. As a result, the gross profits did not increase, but dropped a bit compared to 2013. Furthermore, in the account of operating expense, the company has shown an increasing trend by increasing by 6.93% from 2013 to 2015. However, this played a major role in Bob Evans Farms’ regressive net income. If the executives can improve the administrative system and decrease the expense in operating by making it more efficient, we might hopefully see an increase in net income. Lastly, for additional information, Table 1 contains the financial summary of Bob Evans Farms for the last four
The short term debt paying ability can be concluded after analyzing Bob Evans’ annual balance sheet and quarterly balance sheet. According to the 2015 April’s balance sheet (see Table 2), the total current assets are 124,195,000 dollar, but the total current liabilities are 153,092,000 dollar. Based on the ratio:
Quick Ratio = (Current Assets - Inventories)/Current Liabilities
The Bob Evans quick ratio is 0.65, which is lower than 1. That means Bob Evans cannot afford the short term liabilities. Bob Evans should try to negotiate with obligations to pay credit or borrow money from the bank to solve this dilemma. …show more content…
The total revenues did not change dramatically in recent years. They basically stayed in the range from 1,330,000 thousand to 1,350,000 thousand. The company did well in 2015 and generated 1,349,190 thousand which was a 1.55% increase to 2014 and 1.42% increase to 2013. Its cost of revenue accounts shows a rising trend. As a result, the gross profits did not increase, but dropped a bit compared to 2013. Furthermore, in the account of operating expense, the company has shown an increasing trend by increasing by 6.93% from 2013 to 2015. However, this played a major role in Bob Evans Farms’ regressive net income. If the executives can improve the administrative system and decrease the expense in operating by making it more efficient, we might hopefully see an increase in net income. Lastly, for additional information, Table 1 contains the financial summary of Bob Evans Farms for the last four