Analysis
Simulation reports for rounds 1-4 are attached. Questions are below
- Calculate the net profit margin ratio at the end of Round 4. What does this ratio tell you about the profit being
generated? - . Examining the balance sheet at the end of each round, calculate the current ratio for each round. Next,
perform a trend analysis based on the current ratio you calculated for the end of each round. Do you find the
current ratio increasing or decreasing through the four rounds? (Keep in mind, if the current ratio is below 1,
the company does not have enough in current assets to cover current liabilities, if the current liabilities were all
due at once). At the end of Round 4, can the company satisfy current liabilities? - Understanding how efficiently your company is operating is important from an operations and finance
perspective. The best way to measure operational efficiency through financial statements is through working
capital. Calculate working capital for Round 4 using the balance sheet for your calculation. How efficiently is
your company operating? (Keep in mind, a good working capital ratio is between 1.2 and 2.0).