Accounting Question

For Project 1, you have been assigned: GROUP 1 AUTOMOTIVE, INC. as the company for your analysis. The financial statements for the company’s fiscal year December 1, 2022 can be found by clicking on this link:

Group 1 Automotive

For question 6 (parts i and ii) please use AUTONATION, INC. as the competitor company. The financial statements for the company’s fiscal year December 31, 2022 can be found by clicking on this link:

Autonation

5. Evaluate the LONG-TERM DEBT (such as bonds, notes, or credit facilities) in use by this company, and discuss the specific debt attributes (such as principal amounts, interest rates, payment dates, etc.); do the debt attributes or other factors create concerns about possible repayment?

6. Compute and briefly interpret the following FINANCIAL STATEMENT RATIOS for this company (and the competitor company as also randomly assigned, for comparison) for the most recent year, indicating each ratio formula and detailed computations in your response:

(i) Current Ratio

(ii) Inventory Turnover,

(iii) Debt-to-Equity Ratio
(iv) Profit Margin Ratio

(v) Price / Earnings Ratio

(vi) Payout Ratio