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The following report on Landry's Restaurant's is for years ending 2002

and 2003 accounting periods. The report is to show certain ratios realted to

Landry's business. The ratios that will be discussed in this report are Earnings

per share, return on assets, curretn ratio, times interest earned, assest turnover,

debt to total assests , current cash debt coverage, cash debt coverage and free

cash flow.

The first ratio looked at here is earnings per share or EPS. According to

our textbook Fundamentals of Financial Accounting, 1e earnings per

share indicates the amount of earnings generated for each share of common

stock .(Philips, Libby, Libby 2005) The EPS ratio increased in 2003 from 1.60 in

2002 to 1.66 in 2003. If you were to look at the detailed breakdown of

stockholders' equity in the company's actual balance sheet, you would find that

the increase in stockholders' equity was the net result of a huge increase in

retained earnings and a slight decrease in contributed capital. During 2003,

Landry's bought back more shares than it issued, which combined with an

increase in net income to bump EPS from $1.60 in 2002 to $1.66 in 2003

.(Philips,Libby,Libby 2005)

Return on Assest or ROA is an indicator of how profitable a company is

relative to its total assets. ROA gives an idea as to how efficient management

is at using its assets to generate earnings. Calculated by dividing a company's




Landry's Restaurant's Page 3



annual earnings by its total assets, ROA is displayed as a percentage.

Sometimes this is referred to as "return on investment". (web article 2008) for
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