Net profit margin= Net income*100
Revenue
Year 2020= $-1,752.857/$2365*100= -74.11%
Year 2019= $-2,602.241/3616*100= -71.96%
Year 2018= $-982.091/2157*100= 45.53%
Year 2017= $-710.255/1060*100= 67.01%
Year 2016= $-690.605/343*100= -201.34%
Operating profit margin= Operating profit*100
Total revenue
Year 2020= $-1,808.382/2365*100= -76.46%
Year 2019= $-2,702.48/3616*100= -74.74%
Year 2018= $-977.711/2157*100= -45.33%
Year 2017= $-708.272/1060*100= -66.82%
Year 2016= $-692.603/343*100= 201.93%
Return on Assets (ROA) = Net Income
Average total assets
Year 2020= $-1,752.857/4679*100= -37.46%
Year 2019= $-2602.241/5691*100= -45.72%
Year 2018= $-982.091/3760*100= -26.12%
Year 2017= $-710.255/3017*100= -23.54%
Year 2016= $-690.605/1249*100= -55.29%
Return on equity (ROE) = Net income
Average shareholder’s equity
= $-1,752.857/ (1676+2854)*100= -36.70%
Earnings per share (EPS) = Net income- preferred dividends/average outstanding
Year 2018= ($-982.091- 5152)/291= -21.08%
Year 2017= ($-710.255-4284)/291= -17.16%
Year 2016= ($-690.605-2239)/291= -10.07%
Price earnings ratio (P/E) = market earnings per share/earnings per share
= 0.32/$-5.61= -0.057
Dividend yield and payout= Dividend per share/Earnings per share
= 0/$-5.61= 0
Economic value added (EVA) = Net operating profit after taxes- (Invested capital*WACC)
Current Ratio= Current assets (Henao, 2017)
Current liabilities
Year 2020= 2594/2074= 1.25
Year 2019= 3247/2451= 1.32
Year 2018= 2320/1449= 1.60
Year 2017= 2564/697= 3.68
Year 2016= 1075/306= 3.51
Quick ratio= Current assets- Inventory
Current liabilities
Year 2020= 2594-0/2074= 1.25
Year 2019= 3247-0/2451=1.32
Year 2018= 2320-0/1449= 1.60
Year 2017= 2564-0/697= 3.68
Year 2016= 1074-0/306= 3.51
Net liquid balance= (cash and cash equivalents+ short-term investments) - notes payable (Daryanto, 2019)
Average collection period= Accounts receivable* number of days
Net credit sales
Inventory turnover= Net Sales
Average Inventory at selling price
=2365/0= 0
Total asset turnover= net sales
Total assets
= 2152.34/4679= 0.46
Operating cycle= Inventory period+ accounts receivable period
=
Free cash flow= -3.402
Debt-to-equity ratio= Debt/Equity
= 0.3844
Times-Interest-earned ratio (TIE) =
Book value per share= (Shareholders equity- Preferred equity)/Total outstanding common shares
= (1676-0)/312= 5.1775
From the above information concerning the financial ratios of Lyft company, In the year 2020, the company generated a revenue of $569.9 million which is clearly seen as a drop due to the attack of COVID-19. The company mainly depends on rideshare revenues and it is the most affected business globally by the pandemic during the year 2020. The company stated that the rides were very low by 51% and those riders who were active were also very low, 45.2%. It also generated more revenue for those riders by a rate of 2.3% of a value of $45.4. The losses experienced per share were $0.58 and the net loss was $458.2. In the first quarter of 2020, Lyft company reduced to $955.7 million and in the second quarter, the revenue was $339.3 million. In the third quarter, the revenue reduced slightly, and it was $499.7 but the sales were still low. The company continues to look for a method of increasing profits and it introduced a major roadblock to persuade the Californian voters to pass a law that made the company be exempted from the nation’s labor laws by allowing its drivers to be contractors.
References.
Daryanto, W. M., Dzikro, S. I., & Fitri, D. N. (2019). Financial Performance Analysis of Conventional Taxi in Indonesia: Before and After The Emergence of Ride-Hailing Company. South East Asia Journal of Contemporary Business, Economics and Law, 19(1), 13-21.
Henao, A. (2017). Impacts of Ridesourcing-Lyft and Uber-on Transportation Including VMT, Mode Replacement, Parking, and Travel Behavior. University of Colorado at Denver.
Sherman, E.H. (2015). A manager’s guide to financial analysis: Powerful tools for analyzing the numbers and making the best decisions for your business (6th ed.). Saranac Lake, NY: American Management Association. ISBN: 978-0761215615
The Holy Bible
Profitability ratios of Lyft Company
2020 Net profit margin Operating profit margin Return on assets Return on equity -74.11 -76.459999999999994 -37.46 -36.700000000000003 2019 Net profit margin Operating profit margin Return on assets Return on equity -71.959999999999994 -74.739999999999995 -45.72 2018 Net profit margin Operating profit margin Return on assets Return on equity 45.53 -45.33 -26.12 2017 Net profit margin Operating profit margin Return on assets Return on equity 67.010000000000005 -66.819999999999993 -23.54 2016 Net profit margin Operating profit margin Return on assets Return on equity -201.34 201.93 -55.29
Time in Years
Ratios
R
unning head:
COMPETENCY ONE DEMONSTRATION OF MASTERY
1
Competency
One
Demonstration of Mastery
Running head: COMPETENCY ONE DEMONSTRATION OF MASTERY 1
Competency One Demonstration of Mastery