#3 assignment
Company Analysis
Company Analysis |
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FIN534 Assignment 1
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Company Analysis |
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Industry: |
Yoga Studio Business |
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Company 1: |
YogaWorks Inc. |
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Company 2: |
Gaia Inc. |
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Company 3: |
Lululemon Athletica Inc. |
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Income Statement Information |
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Total Revenue |
Company 1: |
$ 60,176,000 |
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Company 2: |
$ 56,023,000 |
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Company 3: |
$ 3,848,943,000 |
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Gross Profit |
Company 1: |
$ 37,003,000 |
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Company 2: |
$ 48,611,000 |
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Company 3: |
$ 2,136,068,000 |
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Net Income |
Company 1: |
$ (23,005,000) |
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Company 2: |
$ (15,004,000) |
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Company 3: |
$ 577,625,000 |
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EBITDA |
Company 1: |
$ (10,303,000) |
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Company 2: |
$ (3,677,000) |
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Company 3: |
$ 965,691,000 |
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Balance Sheet Information |
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Total Assets |
Company 1: |
$ 39,042,000 |
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Company 2: |
$ 106,172 |
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Company 3: |
$ 3,281,354,000 |
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Total Liabilities |
Company 1: |
$ 18,084,000 |
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Company 2: |
$ 37,258,000 |
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Company 3: |
$ 1,329,136,000 |
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Total Stockholders Equity |
Company 1: |
$ 20,958,000 |
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Company 2: |
$ 68,914,000 |
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Company 3: |
$ 1,952,218,000 |
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Calculate the Following Ratios: |
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Total Debt / |
Total Equity= |
Debt to Equity Ratio |
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Debt to Equity Ratio (Total Debt/Total Equity) |
Company 1: |
18,084,000 |
20,958,000 |
0.86 |
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Company 2: |
37,258,000 |
68,914,000 |
0.54 |
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Company 3: |
1,329,136,000 |
1,952,218,000 |
0.68 |
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Gross Margin (Gross Profits/Sales) |
Company 1: |
Gross Profits/ 37,003,000 |
Sales = 60,176,000 |
Gross Margin 0.61 |
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Company 2: |
48,611,000 |
56,023,000 |
0.87 |
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Company 3: |
2,136,068,000 |
3,848,943,000 |
0.55 |
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Operating Margin (Operating Income/Sales) |
Company 1: |
Operating Income/ (10,303,000) |
Sales= 60,176,000 |
Operating Margin -17% |
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Company 2: |
(3,677,000) |
56,023,000 |
-7% |
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Company 3: |
965,691,000 |
3,848,943,000 |
25% |
Finally, list three takeaways or an analysis of what you’ve learned about each company based on their financial data (at least one paragraph each):
Company 1 |
YogaWorks Inc. has a debt to equity ratio of 0.86. The amount of debt used to finance the firm is therefore less than equity which is less risky for the firm. The firm’s operations are therefore relatively stable. It has a gross margin of 61% which is relatively fair. It is however operating at a negative income margin of 17% which shows that its operating expenses exceed its operating income. It should therefore look for ways to reduce its operating expenses and increase its operating income.
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Company 2 |
Gaia Inc. has a debt to equity ratio of 0.54. This means that the equity of the firm is almost double the amount of debt in the capital structure. This makes its financial leverage very low and operations stable. It has a good profit margin of 87%. This shows that the cost of its services is low. Its operating margin is however at -7% which shows that its operating expenses are greater than its income. It should look for ways to reduce its operating expenses and increase its operating income.
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Company 3 |
Lululemon Athletica Inc has a debt to equity ratio of 0.68. The amount of debt is therefore approximately 68% the amount of equity. The company therefore has a relatively low financial leverage and its operations are therefore stable. It has a gross margin of 55% and an operating margin of 25%. It is therefore operating at a profit with its operating expenses being approximately 30% of sales.
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Your completed Assignment 1 Template is due by Sunday midnight of Week 5 and should be uploaded to Blackboard. Please reach out to your professor with any questions. Good luck.
Industry Outlook/Economic Analysis 1
Industry Outlook/Economic Analysis 4