- Complete a ratio analysis for that company's last year's financial data. At a minimum, list and discuss the company performance vs. its industry average for these 4 ratios:
- Profit as percent of sales
- Current ratio
- Debt to equity ratio
- ROE
- Comment on
- how these ratios depict the financial health of this company as compared to the industry average.
- what the company might do to get better in each area.
|
I know there are more advanced ratio so I am including the suggested ones below. It should be about 500 to 600 words and in charts and cited APA
| Liquidity Analysis Ratios |
| |
 Current Ratio |
| | | Current Assets |
| | Current Ratio = | ------------------------ |
| | | Current Liabilities |
| | | |
| Quick Ratio |
| | | Quick Assets |
| | Quick Ratio = | ---------------------- |
| | | Current Liabilities |
| | | |
| Quick Assets = Current Assets - Inventories |
| |
| Net Working Capital Ratio |
| | | Net Working Capital |
| | Net Working Capital Ratio = | -------------------------- |
| | | Total Assets |
| | | |
| Net Working Capital = Current Assets - Current Liabilities |
| |
| Profitability Analysis Ratios |
Return on Assets (ROA) |
| | | Net Income |
| | Return on Assets (ROA) = | ---------------------------------- |
| | | Average Total Assets |
| | | |
| Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2 |
| |
| Return on Equity (ROE) |
| | | Net Income |
| | Return on Equity (ROE) = | -------------------------------------------- |
| | | Average Stockholders' Equity |
| | | |
Average Stockholders' Equity
= (Beginning Stockholders' Equity + Ending Stockholders' Equity) / 2 |
| |
| Return on Common Equity (ROCE) |
| | | Net Income |
| | Return on Common Equity = | -------------------------------------------- |
| | | Average Common Stockholders' Equity |
| | | |
Average Common Stockholders' Equity
= (Beginning Common Stockholders' Equity + Ending Common Stockholders' Equity) / 2 |
| |
| Profit Margin |
| | | Net Income |
| | Profit Margin = | ----------------- |
| | | Sales |
| | | |
| Earnings Per Share (EPS) |
| | | Net Income |
| | Earnings Per Share = | --------------------------------------------- |
| | | Number of Common Shares Outstanding |
| | | |
| Activity Analysis Ratios |
Assets Turnover Ratio |
| | | Sales |
| | Assets Turnover Ratio = | ---------------------------- |
| | | Average Total Assets |
| | | |
| Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2 |
| |
| Accounts Receivable Turnover Ratio |
| | | Sales |
| | Accounts Receivable Turnover Ratio = | ----------------------------------- |
| | | Average Accounts Receivable |
| | | |
Average Accounts Receivable
= (Beginning Accounts Receivable + Ending Accounts Receivable) / 2 |
| |
| Inventory Turnover Ratio |
| | | Cost of Goods Sold |
| | Inventory Turnover Ratio = | --------------------------- |
| | | Average Inventories |
mgrer3
11 years ago
20
ratio_analysis.docx
