Fiscal Quarter Comparison: Summarize the differences between the following:
The results from your financial calculations of the most recent fiscal quarter.
The results of the same financial calculations of the same fiscal quarter from one year ago.
For example, if the most recent fiscal quarter available is the third quarter in 2023, you’ll compare those results to the same financial calculations from the third quarter in 2022.
Comparison Analysis: Explain what your calculations and comparison show about the business’s current financial health. Give examples to support your explanation for the following questions:
Do the results show the business is financially healthy or unhealthy? Which results indicate this?
What might be the causes of the business’s financial success or failure?
Is more information needed to determine the business’s financial health? If so, which pieces of information might still be needed?
Johnson and Johnson:
2023 4th Quarter Ratios 2022 4th Quarter Ratios
Current Ratio 1.16 1.0
Working Capital $7,213,000 -$508,000
Debt Ratio 0.6 0.6
EPS 1.7 1.3
P.E. Ratio - -
Total Assets Turnover Ratio 0.13 0.1
Financial Leverage 16.5 15.7
Net Profit Margin 0.2 0.1
R.O.A 0.02 0.02
R.O.E 0.4 0.3