Jet2 Task 1 Financial Analysis

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Financial Statement (JET2) Task 1 Victoria Magoonbarker Western Governor’s University Financial Statement (JET2) Task 1 A. Summary Report 1. Evaluate the company’s operational strengths and weaknesses based on the following: a. Horizontal analysis results Competition Bikes, Inc. is a great company with some financial strengths and weaknesses. The horizontal analysis shows the strengths and weaknesses in the company. The horizontal analysis shows that the strength of the company is in the current assets. The current assets have increased by 16.5% from 2007-08. That is still not as much as 2006-07 a 31.5% increase, but the number is still positive for the company. Current assets is the only horizontal analysis that was a significant positive. Total assets and stockholders’ equity are only down -0.2%. This is not that far off from where 2007 was. The company should want to increase the total assets, and stop the decline while it is low. Long-term liabilities is also only down -1.9%. The company is not doing horrible on this, but it can improve. The weaknesses of Competition Bikes, 2008 according to the horizontal analysis is the revenue, operating income, earnings before income taxes, net earnings, and liabilities. Out of all of the weaknesses earnings before income taxes and net earnings are the strongest losses. They both are at -81.6%. This means that the company has loss over three/fourths of the money that they made I 2007. This is a major amount of money that the company needs to look in to, to see why their product is not selling. Operating income is the second biggest loss. It is down -69.1%. The operating expenses are down, but they are not bringing in as much income as they did in 2007. This is a big loss for the company. Revenue is down -16.3%. This means that people are not buying their

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