Running Head: FINANCIAL ANALYSIS FINANCIAL ANALYSIS 6 Financial Analysis Rufus Williams Argosy University July 26, 2018 FINANCIAL ANALYSIS The company Dow DuPont Company is one of the American company which formed merger of DuPont and the Dow Chemical August 31st, 2017. The company has become the global chemical firm about sales; the company even split into three publicly traded company which were so diverse, material science, agriculture, and special products. The division of agriculture is called the Corteva Agriscience, the division of material science is called Dow the DuPont is the specialty product. Below is the company income statements (Verdecchia et al., 2017). Dow DuPont Inc., Income Statement Dec-17 Dec-16 Dec-15 Dec-14 Dec-13 Net Sales 63484 53458 53500 48778 58080 Costs of Sales 50414 37500 37500 45685 47464 Gross Margin 13070 15958 16000 3093 10616 R&D Expenditures -2100 -1208 -1100 -1178 -1850 selling and general administrative -4000 -3300 -3210 -3546 -2157 Amortization of intangibles -1013 -545 -400 -425 -1685 Restructuring, Goodwill impairment and assets charges -3280 -500 525 -578 -458 Integration and separation costs -1100 -1103 -975 -845 1758 Asbestos-related charge -524 -548 -689 Total -11493 -7180 -5708 -7261 -4392 Operating Income 1577 8778 10292 -4168 6224 Sundry Income, net 756 258 1250 1571 1252 Interest expense and amortization of debt discount 958 125 548 468 458 Income From Continuing operations before Income 1714 383 1798 2039 1710 Loss from discount operations, net of tax -77 -85 -64 -784 -84 Net Income 1637 298 1734 1255 1626 Net Income to no controlling -132 -85 -89 -76 -33 Net income attributable Dow DuPont Inc. 1505 213 1645 1179 1593 Preferred Stock Divided -345 -345 -345 -345 -345 Net Income 1160 -132 1300 834 1248 the gross margin for the past five years indicates that the company has been performing very well since after all the expenses have been deducted 2017 had the net income of 1160 which was a significant improvement from 2016. 2015 was the year that the firm had a lot of expenses which made the company have a net loss of -132 (Verdecchia et al., 2017). The following financial ratios are essential to illustrate the financial position of the company, starting with the higher the liquidity ratios indicate that the company liquid asset can cover the company’s liability, therefore, the higher the ratio of the company liquidity the better the firm can cover the liabilities. The table below illustrates the current ratio for the company for over five years; the liquidity ratio is above 1.9 to 2.8 which is very high for the company meaning that current assets can cover the liabilities. The quick ratios above indicate that the current company assets are measuring how the current assets are measuring the liabilities (Verdecchia et al., 2017). Dow DuPont Inc., liquidity ratios ...