Identify and discuss the research question, hypothesis, sampling size, and research finding.

The research question for this study was to determine whether ABC Corporation’s financial performance is strong and sustainable. The hypothesis being tested was that the company’s financial statements would demonstrate a healthy level of profitability, liquidity, and solvency.

Given the scope of the analysis, it was decided that a sample size of one year’s worth of financial data would be sufficient in order to gain useful insights into the company’s performance.

The research findings were encouraging as all ratios associated with profitability and liquidity indicated solid performance by ABC Corporation. In particular, its operating margin (7%), total asset turnover (2X), current ratio (1.5X), and long-term debt-to-equity ratio (1:1) were found to be favorable when compared against industry benchmarks. Additionally, interest coverage and times interest earned ratios suggested that the organization has adequate capital structure for expansion plans going forward.

These results suggest that overall ABC Corporation is performing well financially and should have no difficulty servicing its short or long term debts going forward provided management maintains cost control efforts and prudently manages growth initiatives.