Company Selection & Stock WatchCompany Selection and Stock WatchNo.DateStock NameStock SymbolCurrent PriceExchange Traded OnFinancial Facts107/29/14Puma BiotechnologyPBYI$222.00NYSETrade Value 147.24mMarket cap 6.69bShare Volume 30,117,81927/29/14Birks Group Inc.BGI$1.47AMEXMarket cap $26.23mShare Volume 17,840,568P/E ratio 39.6737/29/14GoProGpro$44.07NASDAQMarket cap $5.43bRevenue per employee $1.53mP/E ratio 76.7047/29/14Dollar TreeDLTR$54.44NASDAQRevenue per employee: $91,245P/E Ratio: 19.21Market cap $11.35b57/29/14El Pollo Loco HoldingsLOCO$29.90NASDAQ2013 Sales Growth: 7.19%Revenue per employee: $70,567Market cap: $990.13m Running head: Finance Finance 2 Introduction This is a financial analysis of two companies both incorporated in the United States. The corporations are GoPro Inc. and Dollar Tree Inc. the financial statements on which the financial health analysis relied on are the reports for: (1)Financial statements for the period ending June 30 2014 for GoPro Inc. and (2) Financial statements for the period ending May 22, 2014 for Dollar Tree Inc. The ratios on which the analysis is done are those relating to the liquidity of the firm which measure how the firm can meet its obligations as and when they fall due, activity ratios covering how efficiently the firm is in converting its assets into money, profitability ratios, leverage and coverage ratios. Liquidity Dollar Tree Inc. has a current ratio of 2.12 and a quick ratio of 0.68 while the ratios are 1.41 and 1.03 respectively for GoPro. By looking at the ratios Dollar tree has a higher ability to pay back its short-term assets than GoPro. However, given that in both cases each and every ratio is greater than unity; both the firms are able to meet their debt obligations when they come due. This suggests that both of the companies are in good financial health. However, the quick ratio for GoPro is less than one and this is pointer that exclusive of the inventories, it may not be able to meet its obligation as and when they fall due. However, we cannot rule out its ability since it can have a variety of ways of seeking funding (Weygandt, 2006). Activity The inventory turnover of 1.9 and 6.0 for Dollar Tree and GoPro respectively point out that it takes Dollar Tree a shorter time than GoPro to sell and replace its inventories. GoPro is less likely to hedge against slow-moving stock and this may interfere with its cash flow systems. As for the receivables turnover Dollar Tree has 21.6 and GoPro has 9.8. Again, GoPro needs to reassess its credit policies to ensure the timely collection of its finances that are not earning interests. As for Days Sales Outstanding, it takes Dollar tree 17 days compared to GoPro’s 37.4. this implies that GoPro is likely to suffer revenues flow interruptions hence this may compromise its financial health. The fixed asset turnover and total assets turnover for Dollar tree and GoPro are 1.8 and 0.7 and 5.2 and 1.2 respectively. Again, Dollar i.

1. Company Selection & Stock WatchCompany Selection and
Stock WatchNo.DateStock NameStock SymbolCurrent
PriceExchange Traded OnFinancial Facts107/29/14Puma
BiotechnologyPBYI$222.00NYSETrade Value 147.24mMarket
cap 6.69bShare Volume 30,117,81927/29/14Birks Group
Inc.BGI$1.47AMEXMarket cap $26.23mShare Volume
17,840,568P/E ratio
39.6737/29/14GoProGpro$44.07NASDAQMarket cap
$5.43bRevenue per employee $1.53mP/E ratio
76.7047/29/14Dollar TreeDLTR$54.44NASDAQRevenue per
employee: $91,245P/E Ratio: 19.21Market cap
$11.35b57/29/14El Pollo Loco
HoldingsLOCO$29.90NASDAQ2013 Sales Growth:
7.19%Revenue per employee: $70,567Market cap: $990.13m
Running head: Finance
Finance
2
Introduction
This is a financial analysis of two companies both incorporated
in the United States. The corporations are GoPro Inc. and Dollar
Tree Inc. the financial statements on which the financial health
analysis relied on are the reports for:
(1)Financial statements for the period ending June 30 2014 for
GoPro Inc. and
(2) Financial statements for the period ending May 22, 2014 for
Dollar Tree Inc.
The ratios on which the analysis is done are those relating to the
liquidity of the firm which measure how the firm can meet its
obligations as and when they fall due, activity ratios covering

2. how efficiently the firm is in converting its assets into money,
profitability ratios, leverage and coverage ratios.
Liquidity
Dollar Tree Inc. has a current ratio of 2.12 and a quick ratio of
0.68 while the ratios are 1.41 and 1.03 respectively for GoPro.
By looking at the ratios Dollar tree has a higher ability to pay
back its short-term assets than GoPro. However, given that in
both cases each and every ratio is greater than unity; both the
firms are able to meet their debt obligations when they come
due. This suggests that both of the companies are in good
financial health. However, the quick ratio for GoPro is less than
one and this is pointer that exclusive of the inventories, it may
not be able to meet its obligation as and when they fall due.
However, we cannot rule out its ability since it can have a
variety of ways of seeking funding (Weygandt, 2006).
Activity
The inventory turnover of 1.9 and 6.0 for Dollar Tree and
GoPro respectively point out that it takes Dollar Tree a shorter
time than GoPro to sell and replace its inventories. GoPro is
less likely to hedge against slow-moving stock and this may
interfere with its cash flow systems. As for the receivables
turnover Dollar Tree has 21.6 and GoPro has 9.8. Again, GoPro
needs to reassess its credit policies to ensure the timely
collection of its finances that are not earning interests. As for
Days Sales Outstanding, it takes Dollar tree 17 days compared
to GoPro’s 37.4. this implies that GoPro is likely to suffer
revenues flow interruptions hence this may compromise its
financial health.
The fixed asset turnover and total assets turnover for Dollar tree
and GoPro are 1.8 and 0.7 and 5.2 and 1.2 respectively. Again,
Dollar is more effective in using its investments in fixed assets
and total assets in general to generate revenues. GoPro is less

3. effective in marshaling its assets to generate revenues which
again may impose financial health challenges (Bodie & Marcus,
2014).
Profitability
Dollar Tree has a gross profit margin and operating profit
margin of 34.8% and 11.6% while GoPro has 41.0% and 0.00%
respectively. Dollar Tree is more financially healthy as it has a
higher proportion of money left over from revenues after taking
into account the costs of goods sold and is more operationally
efficient and has better pricing strategy than GoPro.
As for the return on assets and returns on equity, Dollar Tree
has a 4.7% and 10.5% compared to GoPro’s -2.2% and -7.1 for
ROA and ROE. Dollar Tree is more efficient at using its assets
to generate earnings than GoPro. It is thus able to use its
earnings to fulfill the financial needs implying it is financially
healthy. GoPro is registering losses on equity and assets and is
no financially healthy (Bodie & Marcus, 2014).
Leverage
Dollar Tree Inc. has a Debt/Net Worth and Debt ratio of 0.6 and
55.4% compared to GoPro’s 0.3 and 68.2%. Dollar is more
aggressive in its financial policy as it finances majority of its
operations by debt and is more likely to get higher returns as it
will hardly experience cash flow interruptions as compare to
GoPro. As for the debt ratio, Dollar tree has a lower value than
GoPro implying that GoPro is more at financial risk than Dollar
Tree as it may be a victim of shareholders’ unrest as they may
not be able to meet their obligations.
Coverage
Dollar tree has a time-interest earned ratio of 28.6 compared to
nothing for GoPro. The implication of this for GoPro is that it
cannot meet its obligations as and when they fall due. The
danger with this scenario is that the company could be forced
into bankruptcy and this is a serious and undesirable

4. antecedence. This ratio is so much dependent on the company’s
ability to sustain its earnings (Weygandt, 2006).
Conclusion
Based on all the ratios it is apparent that GoPro is not
financially healthy. This is based on its low turnover ratios,
high leverages, zero coverage, low profitability, and liquidity
and activity ratios. Also, based on the financial statements,
dollar Tree Inc. is financially healthy and seems to promise
good returns on any investment made. However, it is important
to put a disclaimer that the financial statements are prone to
human errors and some are based on approximations that do not
apply the real situation that exists within the corporation.
References
Bodie, Z., & Marcus, A. K. (2014). Essentials of Investments,
5th ed. . McGraw-Hill Irwin. p. 459. ISBN 0-07-251077-3. .
Weygandt, J. J. (2006). Accounting Principles (4th ed.). New
York, Chichester, Brisbane, Toronto, Singapore: John Wiley &
Sons, Inc. p. 801-802.