Begin The Financial Statement Analysis Of Casey's

Introduction:

To begin the Financial Statement Analysis Project, two companies will be analyzed and compared side by side in terms of liquidity, solvency, and likelihood of investment via common stock purchase. The first company to be reviewed is Casey’s. Casey’s is a fueling station and convenience store business located primarily in small towns that are not already services by national-chain convenience stores. Competitive competencies include low prices, convenient locations, extended hours, wide product offerings, and high-quality service. As of April 2022, there are 2,452 stores open under the name Casey’s, GoodStop, or Bucky’s. In addition to these, the company owns two tobacco/nicotine product stores, a liquor only store, and a grocery

Debt to equity shows the number of dollars of borrowing for each dollar of equity investment. The higher the number the riskier and the more the company relies on borrowing debt. Casey’s debt to equity ratios were 1.46 the most recent year and 1.31 the previous year. Murphy USA’s ratio was 4.02 the most recent year and 2.43 the previous year. Like debt to assets, the lower the ratio the better. Casey’s ratios were lower than Murphy USA’s for both years. Both company’s ratios got worse from the previous year to the most recent, but Casey’s remained smaller and only increased slightly while Murphy USA’s increased by 1.59. This shows that Casey’s is the more solvent company and the safer company to grant a loan due to the lower

Their return on equity for the most recent year was 49.9% and was 48.9% the previous year. Casey’s return on equity was 16.3% the most recent year and was 17.5% the previous year. These calculations show that Murphy USA’s percentages were higher both years than Casey’s. Additionally, Murphy USA showed improvement in the most recent year when compared to the previous. Casey’s performed worse and had a lower return on equity the most recent year than the previous year. Murphy USA is better equipped to generate a return and a profit. Next, return on investment was considered. Again, murphy USA is the better company to buy stock from. Murphy USA’s return on investment for the most recent year was 11.8% and was 14.4% the previous year. Casey’s return on investment for the most recent year was 6.8% and was 7.4% the previous year. Both companies showed a decline in performance from the previous year to the most recent, but Murphy USA’s calculations were higher both years. This means that Murphy USA has a better performance based on their resources and has a stronger ability to use their assets to generate a