Financial Ratio Analysis
Financial Ratio Analysis
Purpose of Assignment
The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.
Assignment Steps
Select a Fortune 500 Company from one of the following industries:
· Energy
· Retail
· Automotive
· Computer Hardware
Review the balance sheet and income statement in the company's 2015 Annual Report.
Calculate the following ratios using Microsoft® Excel®:
· Current Ratio
· Quick Ratio
· Debt Equity Ratio
· Inventory Turnover Ratio
· Receivables Turnover Ratio
· Total Assets Turnover Ratio
· Profit Margin (Net Margin) Ratio
· Return on Assets Ratio
Analyze in 1,050 words why each ratio is important for financial decision making.
Submit your analysis as well as your calculations.