Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2012 and 2013:

PHASE ONE IP

Type: Individual Project

Unit:  Financial Statements and Analysis

Due Date:  Mon, 11/23/15

Grading Type: Numeric

Points Possible:  100

Points Earned:  0

Deliverable Length:  Word document of 500-800 words with attached Excel spreadsheet

Word document of 500-800 words with attached Excel spreadsheet showing calculations

Library Research Assignment

Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2012 and 2013:

• Liquidity Ratios

  • Current ratio [current assets / current liabilities]

  • Quick ratio [(current assets – inventory) / current liabilities]

• Asset Turnover Ratios

  • Collection period [accounts receivable / average daily sales]

  • Inventory turnover [cost of goods sold / ending inventory]

  • Fixed asset turnover [sales / net fixed assets]

• Financial Leverage Ratios

  • Debt-to-asset ratio [total liabilities / total assets]

  • Debt-to-equity ratio [total liabilities / total stockholders’ equity]

  • Times-interest-earned (TIE) ratio [EBIT / interest]

• Profitability Ratios

  • Net profit margin [net income / sales]

  • Return on assets (ROA) [net income / total assets]

  • Return on equity (ROE) [net income / total stockholders’ equity]

• Market-Based Ratios

  • Price-to-earnings (P/E) ratio [stock price / earnings per share]

  • Price-to-book (P/B) ratio [market value of common stock / total stockholders’ equity]

    You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2012 to 2013, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.

    If a ratio decreased from 2012 to 2013, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.

    If a ratio was unchanged from 2012 to 2013, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.

    Please submit your assignment.

    For assistance with your assignment, please use your text, Web resources, and all course materials.