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

Wynn Resorts Financial Summary - Essay Examplealents, cost of sales, total current assets, common 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 proportion defines the ratio of an entitys capital that is contributed by third parties to owners equity. It is an instrumental tool to potential investors and lenders as it indicates levels of certainty of the entitys 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 institutions ability to have notes or cash equivalents from which it can meet its short-term obligations. A firm that has readily available cash or current asset s that can be easily converted to cash, such as inventory that can be sold or debtors that can have to boost the entitys 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 companys 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 companys 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 getting short term debts hence strained short-term performance (Khan and Jain, p. 6- 40).The gross profit margin defines a measure of an organizations products profitability. The company go through an improvement in its gros s profit margin that