Activity: Financial Health Analysis Worksheet

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Module1ActivityTemplate.xlsx

RATIO ANALYSIS

RATIO ANALYSIS
Note: change the column names to your industry and selected companies
RATIOS [INDUSTRY/INDEX] [COMPANY #1] [COMPANY #2] ANALYSIS
Profitability Ratios (%)
Gross Margin
EBITDA Margin
Operating Margin
Pre-Tax Margin
Effective Tax Rate
Financial Strength
Quick Ratio
Current Ratio
LT Debt to Equity
Total Debt to Equity
Interest Coverage
Valuation Ratios
Price/Earnings Ratio
Price to Sales P/S
Price to Book P/B
Free Cash Flow per Share
Management Effectiveness (%)
Return On Assets
Return On Investment
Return On Equity
Efficiency
Receivable Turnover
Inventory Turnover
Total Asset Turnover
Free Cash Flow/Net Income
What is Ratio Analysis? Briefly explain and cite your resources:
Based on the ratio analysis above, in which company would you be willing to invest and why?