Financial Analysis of Scholastic and Daktronics Essay -- Financial Ana

Evaluating a companys financial condition can be done by spirit at its profitability or its ability to satisfy long-term commitments. These measures can be viewed through an analysis of a companys financial statements, including the chemical equilibrium sheet and income statement. This authorship will look at the status of Scholastic attach tos (Scholastic) ability to satisfy its long-term commitments and at the profitability of Daktronics, Inc. (Daktronics). This paper will include various financial ratio calculations and an analysis of the notable trends. It will also discuss the profitability and long-term borrowing positions of the firms discussed. Scholastic Company is a multibillion dollar childrens book publisher and distributor with more than 9,000 worldwide employees (Scholastic Inc., n.d.). Scholastic leases some of its physical office and storage locations and equipment (as cited in Gibson, 2011). Cornaggia, Franzen, and Simin (2013) note the reasons firms lea se may be the result of a companys financial distress which prevents sufficient capital being raised to purchase preferably of leasing. They also suggested if profitability of the firm is not at issue, leasing can be used to reduce taxes thus reducing borrowing costs. Though the reason for maintaining genuine lease obligations is not disclosed in its financial statements (as cited in Gibson, 2011), Scholastics ability to satisfy its long-term commitments is important for investors, creditors, and management. The long-term borrowing electrical condenser of Scholastic can be determined through an analysis of its times interest earned, fixed charge coverage, and debt ratios.The times interest earned ratio uses a companys income statement to assess its ability to meet long-... ... CitedCornaggia, K. J., Franzen, L. A., & Simin, T. T. (2013). Bringing leased assets onto the balance sheet. Journal of Corporate Finance, 22345-360. http//dx.doi.org/10.1016 /j.jcorpfin.2013.06.007Damo daran, A. (n.d.). Operating versus capital leases. Retrieved from http//pages.stern.nyu.edu /adamodar/New_Home_Page/AccPrimer/lease.htmDaktronics, Inc. (n.d.). Our company. Retrieved from http//www.daktronics.com/en-us/about-usGibson, C. H. (2011). Financial insurance coverage & analysis Using financial accounting information. (12th ed.). Mason, OH South-Western Cengage Learning.Monea, M. (2009). Financial ratios Reveal how a business is doing? Annals of the University Of Petrosani Economics, 9(2), 137-144. Retrieved from http//www.upet.ro/engScholastic Inc. (n.d.). About Scholastic. Retrieved from http//www.scholastic.com /aboutscholastic/index.htm