Financial Report on HUAYI BROTHERS MEDIA CORPORATION Essay

Financial Report on HUAYI BROTHERS MEDIA CORPORATION - Essay Example In 2011, the company’s current assets amount, 1403.42 was 3.99 times the amount of current liabilities, 351.91. On the other hand, the company’s 2012 current assets amount, 2,562.33 was only 1.66 times the amount of current liabilities, 1,544.15. The financial statement analysis indicates the company’s current ratio had declined between the 2011 and 2012, comparing their 3rd quarter business performances. The current ratio shows that the company has more than enough current assets available to pay the company’s current liabilities (Drury 496). The company’s gross ratio shows the relationship between the company’s net income amount and net sales figures (http://www.google.com/finance?q=SHE:300027&fstype=ii ). In terms of third quarter financial performance, the Huayi Brothers Media Corporation’s net profit margin ratio shows an unfavorable business performance picture. In 2011, the company’s net profit amount, 102.49 was 21 percent of the amount of net sales, 481.30. On the other hand, the company’s 2012 Net Income amount, 130.91 was only 18 percent of the amount of net sales, 707.80. The financial statement analysis indicates the company’s net profit ratio had dropped between the 2011 and 2012, when analyzing their 3rd quarter financial operations (Drury 185). The above return on investment graph shows how long the company will be able to recover its investments (http://www.google.com/finance?q=SHE:300027&fstype=ii). Recovering the investments in a shorter recovery time is better than a longer recovery time period. In terms of third quarter financial performance, the Huayi Brothers Media Corporation’s return on investment ratio shows an unfavorable business performance picture. In 2011, the company’s net profit amount, 102.49 was 7percent of the amount of Total Assets, 1,403.42. On the other hand, the company’s 2012 Net Income amount, 130.91 was only 18 percent of the amount of net sales, 707.80. The financial statement