The report focuses on the financial statement analysis of Tick-Tock in the period from 2005 to 2007. And at the same time it gives the recommendation whether to buy Tick-Tock for $275,000 or continue looking for a 'other activity. This financial statement has been divided into three segments: profitability, liquidity and financial stability. The first part is profitability which focuses on different aspects of return on investment and evaluation of operational performance ratios. And the second concrete segment about liquidity, since this ratio measures a company's ability to pay short-term obligations, the current ratio of 2007 shows that the company has good short-term financial strength to meet its liabilities currents. The third part illustrates the financial stability of the Tick-Tock Company, which indicates that the proportion of assets provided by creditors has increased over the two years. Probability From the analysis of the given data, we can know that the return to total assets ratio of 2005 is 37.36%, but in 2007 it is 26.06%, the ratio decreased by 11.3%. This means that the company has less profit. The return on common equity has also decreased from 32.82% in 2005 to 24.17% in 2007, this ratio measures the return earned on assets provided by the owners and the decreased ratio indicates that the company uses equity poorly efficient. These two ratios indicate that the company is getting a less profitable return on the money it borrowed from 2005-2007. From the horizontal analysis starting with the change in the monetary amount, we can see that compared to 2006, in 2007 net sales decreased by 2.21%. which directly leads to a decline in gross profit of 4.35%. And the report also shows that although profit after taxes increased from 2005 to 2006, it declined in 2007. Since the dividend payout ratio measures the percentage of profits paid to common shareholders, a dividend payout ratio dividends of 148% in 2007 indicates that the company has paid out its profits more than once in the form of dividends and does not have enough power to grow. So according to these ratios, Tick-Tock is making a decreasing and unsatisfactory profit in the period from 2005 to 2007. LiquidityThe current ratio of Tick Tock Pty Ltd from 18.83 in 2005 decreases to 7.41 in 2006 and then drops to 4.81 in 2007. It indicates that this company has the ability to meet its short-term debt with its current debt. Maybe because this company had many consensuses on hand, it used the resources to make some investments and other things so as to reduce the resources, and wanted to make the current consensuses more efficient and earn more.