Accounting course Project : Financial Statement Analysis

Financial Statement Analysis

Select the most recent financial set of financial statements for the company of your choice.

Here is the scenario for your project:

You are the newly appointed treasurer and your partner is the newly appointed controller of your company. In order to learn more about your company, you have decided to analyze the company’s financial performance over the last 2 years. To do this, you have decided to calculate the following ratios for the company’s 2 most recent years in the noted categories:

1. Profitability Ratios

a. Gross Margin Percentage

b. EBIT Margin Percentage

2. Resource Management Ratios:

a. Age of Inventory

b. Age of Accounts Receivable

c. Age of Accounts Payable

3. Liquidity Ratio:

a. Current Ratio

4. Leverage Ratios

a. Debt-to-Assets Ratio

b. Debt-to-Equity Ratio

Required

In your teams, you will produce a 15-20 PowerPoint slides. You will provide a brief evaluation regarding the company’s performance as it relates to the four categories listed above. Finally, you will discuss how these ratios will help you make appropriate financial decisions as they relate to your role as a financial manager, and also assist in achieving the firm’s financial management goals.