Company Analysis
Your Name:
FIN534 Assignment 1
Company Analysis
Industry:
Yoga Studio Business
Company 1:
YogaWorks Inc.
Company 2:
Gaia Inc.
Company 3:
Lululemon Athletica Inc.
Income Statement Information
Total Revenue
Company 1:
$ 60,176,000
Company 2:
$ 56,023,000
Company 3:
$ 3,848,943,000
Gross Profit
Company 1:
$ 37,003,000
Company 2:
$ 48,611,000
Company 3:
$ 2,136,068,000
Net Income
Company 1:
$ (23,005,000)
Company 2:
$ (15,004,000)
Company 3:
$ 577,625,000
EBITDA
Company 1:
$ (10,303,000)
Company 2:
$ (3,677,000)
Company 3:
$ 965,691,000
Balance Sheet Information
Total Assets
Company 1:
$ 39,042,000
Company 2:
$ 106,172
Company 3:
$ 3,281,354,000
Total Liabilities
Company 1:
$ 18,084,000
Company 2:
$ 37,258,000
Company 3:
$ 1,329,136,000
Total Stockholders Equity
Company 1:
$ 20,958,000
Company 2:
$ 68,914,000
Company 3:
$ 1,952,218,000
Calculate the Following Ratios:
Total Debt /
Total Equity=
Debt to Equity Ratio
Debt to Equity Ratio
(Total Debt/Total Equity)
Company 1:
18,084,000
20,958,000
0.86
Company 2:
37,258,000
68,914,000
0.54
Company 3:
1,329,136,000
1,952,218,000
0.68
Gross Margin (Gross Profits/Sales)
Company 1:
Gross Profits/
37,003,000
Sales =
60,176,000
Gross Margin
0.61
Company 2:
48,611,000
56,023,000
0.87
Company 3:
2,136,068,000
3,848,943,000
0.55
Operating Margin
(Operating Income/Sales)
Company 1:
Operating Income/
(10,303,000)
Sales=
60,176,000
Operating Margin
-17%
Company 2:
(3,677,000)
56,023,000
-7%
Company 3:
965,691,000
3,848,943,000
25%
Finally, list three takeaways or an analysis of what youve learned about each company based on their financial data (at least one paragraph each):
Company 1
YogaWorks Inc. has a debt to equity ratio of 0.86. The amount of debt used to finance the firm is therefore less than equity which is less risky for the firm. The firms operations are therefore relatively stable. It has a gross margin of 61% which is relatively fair. It is however operating at a negative income margin of 17% which shows that its operating expenses exceed its operating income. It should therefore look for ways to reduce its operating expenses and increase its operating income.
Company 2
Gaia Inc. has a debt to equity ratio of 0.54. This means that the equity of the firm is almost double the amount of debt in the capital structure. This makes its financial leverage very low and operations stable. It has a good profit margin of 87%. This shows that the cost of its services is low. Its operating margin is however at -7% which shows that its operating expenses are greater than its income. It should look for ways to reduce its operating expenses and increase its operating income.
Company 3
Lululemon Athletica Inc has a debt to equity ratio of 0.68. The amount of debt is therefore approximately 68% the amount of equity. The company therefore has a relatively low financial leverage and its operations are therefore stable. It has a gross margin of 55% and an operating margin of 25%. It is therefore operating at a profit with its operating expenses being approximately 30% of sales.
Your completed Assignment 1 Template is due by Sunday midnight of Week 5 and should be uploaded to Blackboard. Please reach out to your professor with any questions. Good luck.
Industry Outlook/Economic Analysis 1
Industry Outlook/Economic Analysis 4
