Financial Statement Analysis Paper
Running head: FINANCIAL STATEMENT ANALYSIS PAPER
Financial Statement Analysis Paper
Principles of Accounting
ACC/300
Mr. John Opincar
June 24, 2009
Abstract
Landry’s has become a successful company over the years because the customers enjoy the specialty items that they serve on their menu. It has become a company that we enjoy taking our families out to dinner, celebrating birthday parties and certain special events. However, this paper will complete the financial analysis for the reported years of 2002 and 2003. Upon review of the financial statements will find out the financial performance of Landry’s and show the analysis. The ratio analysis of Landry’s will be reviewed as well and in details discussed from their earnings per share, return on assets, current ratio, times interest earned, asset turnover, debt to total assets, current cash debt coverage, cash debt coverage, and free cash flow.
Financial Statement Analysis Paper In any type of business, a balance sheet for all financial transactions has to be present and and accounted for. In the case of Landry Restaurants, this company is publicly traded and has stockholders. Earnings per share are very important to the stockholders. The earning per share is defined as the amount of earnings generated for each share of common stock. Most companies report earnings per share, earnings per share is the net income divided by weighted average common shares outstanding. In the year 2003 the shares in the company increased slightly more than in 2002 which this ultimately says the company generated more revenue in 2003. If one is investing in a particular company he or she definitely wants to see a return on their investments. Asset turnover or return on assets is the net income divided by the average assets of a company in this case it is Landry’s restaurant. In the equation that was done it was determined there was a sharp increase in asset turnover from the years 2002 to 2003.
Financial Statement Analysis Paper
Principles of Accounting
ACC/300
Mr. John Opincar
June 24, 2009
Abstract
Landry’s has become a successful company over the years because the customers enjoy the specialty items that they serve on their menu. It has become a company that we enjoy taking our families out to dinner, celebrating birthday parties and certain special events. However, this paper will complete the financial analysis for the reported years of 2002 and 2003. Upon review of the financial statements will find out the financial performance of Landry’s and show the analysis. The ratio analysis of Landry’s will be reviewed as well and in details discussed from their earnings per share, return on assets, current ratio, times interest earned, asset turnover, debt to total assets, current cash debt coverage, cash debt coverage, and free cash flow.
Financial Statement Analysis Paper In any type of business, a balance sheet for all financial transactions has to be present and and accounted for. In the case of Landry Restaurants, this company is publicly traded and has stockholders. Earnings per share are very important to the stockholders. The earning per share is defined as the amount of earnings generated for each share of common stock. Most companies report earnings per share, earnings per share is the net income divided by weighted average common shares outstanding. In the year 2003 the shares in the company increased slightly more than in 2002 which this ultimately says the company generated more revenue in 2003. If one is investing in a particular company he or she definitely wants to see a return on their investments. Asset turnover or return on assets is the net income divided by the average assets of a company in this case it is Landry’s restaurant. In the equation that was done it was determined there was a sharp increase in asset turnover from the years 2002 to 2003.