4-2MS2
sha2
ol501_milestone2_worksheet_template.docxOL 501 Milestone Two Worksheet
In this assignment, look at the financial statements of your chosen company and calculate some basic financial ratios to analyze the company’s health and performance.
· Fill in the table below with information from the financial statements provided in your chosen company’s case study. Calculate the % change between the current year and previous year for each item. Remember to correctly identify the currency for your case study.
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Most Current Year |
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Previous Year |
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Current Assets |
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Total Assets |
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Current Liabilities |
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Total Debt |
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Sales/Revenue |
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Cost of Goods Sold |
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Inventory |
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Net Income/Loss |
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· From the information in the table above, identify which line items are increasing with a plus sign and which are decreasing with a minus sign. Evaluate whether the change from the previous year is good or bad for the company’s performance and explain why.
· Use the information in the table above to calculate the following financial ratios. Explain what the result of each ratio says about your chosen company’s financial health.
· Current Ratio
· Debt to Asset Ratio (Debt Ratio)
· Inventory Turnover
· Return on Sales (Profit Margin)
· Summarize your information and identify potential problem areas as reflected in the financials.
