Wynn Resorts Financial Summary Essay Example | Topics and Well Written Essays - 1500 words

Wynn Resorts Financial Summary - Essay Example alents, cost of sales, total current assets, gross profit, long term debt, net income (loss), total equity, inventory and total assets for the years 2012 and 2011. The output also shows changes and percentage changes in the items over the two peariods. Debt to equity ratio defines the ratio of an entity’s capital that is contributed by third parties to owner’s equity. It is an instrumental tool to potential investors and lenders as it indicates levels of certainty of the entity’s continuity. It is determined by the following formula, Return on investment is a profitability ratio that compares the profit performance to the investment made towards that profit. It is fundamental to investors as users of financial statements. It is obtained from the formula, Liquidity refers to an institution’s ability to have cash or cash equivalents from which it can meet its short-term obligations. A firm that has readily available cash or current assets that can be easily converted to cash, such as inventory that can be sold or debtors that can pay to boost the entity’s cash reserve, is therefore said to be more liquid than one with less cash equivalents. Liquidity is further evaluated with respect to short-term obligations. A firm with higher current assets than current liabilities, hence a high current ratio is for instance more liquid that one with a smaller current ratio (Khan and Jain, p. 6- 40). The company’s liquidity decreased from the year 2010 to the year 2011 with values of 1.76 and 1.09 respectively. This meant, on a short-term basis, that the company’s operations relied more on short-term debts, as compared to its current assets, in the year 2011 than in 2010. It also means a lower probability of acquiring short term debts hence strained short-term performance (Khan and Jain, p. 6- 40). The gross profit margin defines a measure of an organization’s products profitability. The company experienced an improvement in its gross profit margin that