Ratio Analysis Problem

sirer0

For the two firms, locate and download their latest annual report. Annual reports are typically found within the 'Investor Relations' section of a firm's website.

Utilizing the data from each of the firm's annual reports, calculate the following ratios:

  • Liquidity Ratios - Current Ratio and Quick Ratio
  • Activity Ratios - Inventory Turnover, Receivables Turnover, Days Sales Outstanding, Fixed Asset Turnover, and Total Asset Turnover
  • Profitability Ratios - Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return on Assets, and Return on Equity
  • Leverage Ratios - Debt/Net Worth and Debt Ratio
  • Coverage Ratios - Times-Interest-Earned

You may utilize a Microsoft Excel document to calculate the ratios for each firm.

After calculating the ratios for each of the firms, present the results and provide a brief analysis on the financial health of each firm.

Your assignment should be a minimum of 3 written pages in addition to the ratio calculations and utilize APA formatting. In-text citations and a reference page should also be included.

  • 11 years ago
  • 50
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