Financial Ratio Analysis - TDMaddox

Wk 1 – Financial Ratio Analysis [due WED]

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Assignment Content

1.

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Resources

· Financial Ratio Analysis Grading Guide

· Microsoft® Excel®

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:

· Pharmaceutical

· 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. Do a Power Point on you findings, to present in class on the 23rd.

Submit your analysis as well as your calculations. 

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