Financial Analysis of Scholastic and Daktronics Essay -- Financial Ana

Evaluating a companys pecuniary condition squeeze out be done by expression at its advantageousness or its ability to satisfy semipermanent commitments. These measures can be viewed through an analysis of a companys financial statements, including the balance sheet and income statement. This paper will look at the conside symmetryn of Scholastic Companys (Scholastic) ability to satisfy its long-term commitments and at the profitability of Daktronics, Inc. (Daktronics). This paper will include various financial balance 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 reserve publisher and distributor with more than 9,000 worldwide employees (Scholastic Inc., n.d.). Scholastic subscribe tos some of its physiologic office and storage locations and equipment (as cited in Gibson, 2011). Cornaggia, Franzen, and Simin (201 3) noted the reasons firms lease may be the result of a companys financial distress which prevents decent cracking being raised to purchase instead of leasing. They also suggested if profitability of the firm is not at issue, leasing can be used to quash taxes thus reducing borrowing costs. Though the reason for maintaining material 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 susceptibility of Scholastic can be determined through an analysis of its generation interest earned, fixed charge coverage, and debt ratios.The times interest earned ratio uses a companys income statement to assess its ability to bump into 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/10.1 016 /j.jcorpfin.2013.06.007Damodaran, 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 reporting & 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