Lamar Swimwear

Topics: Balance sheet, Financial ratios, Financial statements Pages: 4 (1246 words) Published: April 14, 2013
Financial Analysis of Lamar Swimwear
In this paper I will use the income statement and balance sheet to evaluate the financial performance of Lamar Swimwear, and the company’s worthiness as an investment. While just looking at a company’s financial report one is unable to see all of the details necessary to make a clear decision. Anything can look good on paper but if you scrutinize and analyze that paper you may be surprised at to what you may discover. Lamar Swimwear is one of those companies that looks like it may be flourishing within its industry until numbers are calculated. With the ratios that I will give within and throughout this paper it will allow you to see why Lamar Swimwear is not a good investment for a new partner to invest in. Year| Income | Assets | ROA| Industry Ratios|

200X| $ 88,200 | $ 1,100,000 | 8.02%| 7.94%| | | | | |
200Y| $ 91,800 | $ 1,350,000 | 6.80%| 8.86%| | | | | |
200Z| $ 119,700 | $ 2,100,000 | 5.70%| 8.95%|
Year| Income | Stockholders' Equity | ROE| Industry Ratios| 200X| $ 88,200 | $ 554,600 | 15.90%| 14.31%| | | | | |
200Y| $ 91,800 | $ 646,400 | 14.20%| 15.26%| | | | | |
200Z| $ 119,700 | $ 856,100 | 13.98%| 16.01%| Year| Income | Sales | Net Profit Margin | Industry Ratios| 200X| $ 88,200 | $ 1,200,000 | 7.35%| 7.71%| | | | | |

200Y| $ 91,800 | $ 1,500,000 | 6.12%| 7.82%| | | | | |
200Z| $ 119,700 | $ 1,875,000 | 6.38%| 7.96%|

When looking at the numbers given on the income statement for Lamar Swimwear, it shows that the company is steadily declining...
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