Financial statement analysis
lur28
htm_341__hw4.docxHTM 341 Name:
1. How is BWLD'S profitability from the shareholders' point of view? What is the basis of your conclusion?
2. Operations management
a. List two things that BWLD did well in terms of operations management.
b. With the revenue growing so fast, why is the operating margin only slightly above the industry average? What is the reason for your conclusion?
3. Asset management.
a. Show the calculation of 2013 inventory turnover and interpret the number.
b. What does a negative working capital mean?
4. Debt management
a. Is BWLD'S liquidity at a good level? Why?
b. What does it mean to have an equity multiplier that is lower than the industry average?
c. Should BWLD increase its financial leverage? What is the benefit of doing so?
5. Overall, would you contribute BWLD's good profitability to its operations management, asset management, and/or debt management? Please explain.
