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    Part VI Analysis

    Uploaded by

    Jai John
    This document analyzes different parts of financial analysis including EPS/EBIT analysis, financial statement analysis, cash value analysis, projected financial ratios analysis, and retained earnings analysis. The document provides details on each type of analysis and their importance for understanding a company's financial health and making strategic decisions.

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    Part VI Analysis

    Uploaded by

    Jai John
    142 views2 pages
    This document analyzes different parts of financial analysis including EPS/EBIT analysis, financial statement analysis, cash value analysis, projected financial ratios analysis, and retained earnings analysis. The document provides details on each type of analysis and their importance for understanding a company's financial health and making strategic decisions.

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    part VI Analysis

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    This document analyzes different parts of financial analysis including EPS/EBIT analysis, financial statement analysis, cash value analysis, projected financial ratios analysis, and retained earnings analysis. The document provides details on each type of analysis and their importance for understanding a company's financial health and making strategic decisions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    142 views2 pages

    Part VI Analysis

    Uploaded by

    Jai John
    This document analyzes different parts of financial analysis including EPS/EBIT analysis, financial statement analysis, cash value analysis, projected financial ratios analysis, and retained earnings analysis. The document provides details on each type of analysis and their importance for understanding a company's financial health and making strategic decisions.

    Copyright:

    © All Rights Reserved
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    Part VI Analysis

    Part I: EPS / EBIT Analysis


    EPS / EBIT Analysis in the financial world is a technique that is used to determine the capital
    structure in which the value of earnings per share (EPS) has the highest amount for a given
    amount of earnings before interest and taxes (EBIT)” (David, 2020). This in other words, is used
    to determine the effect of using different sources of financing on earnings per share. This is very
    important for financial planning, doing a comparative analysis for a company as a whole or a
    specific project, product, department, market etc., and in the determination of target capital
    structure.

    Part II: Financial Statements Analysis


    Financial statements are key in providing significant information about a company’s financial
    health. Any and every company must keep a detailed set of financial statements in order to
    provide the best return on investment (ROI) information for all shareholders and many more at
    interest (David, 2020). These are used for financing, showing financial strength, seeking
    investors and much more (David, 2020). By analyzing and preparing a projected income
    statement and balance sheet for Netflix, we are able to understand where to focus the strategy
    for growth in the future.

    Part III: Cash Value Analysis


    Determining the cash value of a business is very important. Cash value or net worth is simply the
    amount by which an organization’s assets exceed their liabilities (Folger, 2019). When selling a
    business, it is best to know the exact value of the business, as accurately as possible. There are
    asset valuations, market valuations, and income valuations. These are all heavily looked at by
    potential buyers and investors. Shareholders and strategists also pay close attention to the cash
    value of their respective organizations as well. Netflix’s net worth provides a snapshot of the
    financial situation at a point in time. As strategist, this is crucial for understanding the current
    financial health and making financial strategy decisions for the future. While the results are
    extremely important, understanding what is driving the results is equally important.
    Part IV: Projected Financial Ratios Analysis
    There are several financial ratios that can be used to monitor a business. However, there are a
    few that are key in meaningful financial analysis; profitability (net income/revenue), efficiency
    (revenue/assets, leverage (liabilities/assets), and liquidity (current assets/current liabilities). They
    help provide standard method of comparison, stock valuation for strength and weakness of a
    company, as well as assisting with planning and performance, and industry analysis and
    benchmarks.

    Part V: Retained Earnings Analysis


    Retained earnings are very important as they show the sum of a company’s profits, after dividend
    payments are made, since the company’s inception. They are also referred to as an earned
    surplus, retained capital, or accumulated earnings. Retained earnings ultimately demonstrates
    what a company did with its profits (David, 2020), and reflect the amount of profit a company
    reinvested in its business or paid out to shareholders.

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