Analysis of Landry's Financial Performance

Analysis of Landry’s Financial Performance for Years Ending 2002 and 2003

Paul F. Brunner

Principles of Accounting ACC300

Tammy R. Domngern

September 27, 2010

The analysis of Landry’s financial performance for years ending 2002 and 2003 accounting periods is shown through certain ratios that are used in relation to Landry's business. Ratios will be discussed and compared in this paper.

The Earnings Per Share

The earnings per share or EPS which indicates the amount of earnings that is generated for each share of common stock is by figuring net income by subtracting preferred stock dividends then dividing average common shares outstanding. For 2003 the following figures were calculated 45,900-27,600/28,325=0.60 and for 2002 the following figures were calculated 41,5222—25,900/26,900 = 0.58 (Philips, Libby, Libby 2005). The EPS ratio was increased in 2003 to 0.60 from 0.58 in 2002. The detailed breakdown of stockholders' equity in the balance sheet, show a increase in stockholders' equity that results in a retained earnings and a slight decrease in contributed capital (Philips, Libby, Libby 2005).

Return on Assets

Return on Assets or ROA is the indicator as how profitable a company is relative to their total assets which how efficient management is using their assets to generate earnings. To figure out the ROA divide the company's annual earnings by its total assets which then shows the percentage of earnings. The figures for 2003 net income of 45,901,054/1,102,785,506 = .038. Then do the something with the 2002 figures of income 41,521,616 / 933,015,079 =040.

The Current Ratio

The current ratio compares current assets to current liabilities to calculate the current ratio’s use the current assets divided by current liabilities which equals the current ratio.   To figure Landry’s 2003 current ratio by using the following figures; 120,604,181/159,581,009= 0.75 current ratio of the company’s current assets to its liabilities. To figure Landry’s...