Financial Statement Analysis
Your completed project should include:
Two completed tables, one that contains the data necessary to compute the ratios and another
with the ratios themselves. These tables are shown below.
A brief (1-2 page single spaced) evaluation of your company’s financial ratios, comprising
the following four sections:
Section I—A brief (1-3 sentences) summary of your company’s business and the
economic environment in which it operates.
Section II — A brief evaluation over time of your company’s:
- Return on equity (ROE),
- DuPont ratio components (profitability, efficiency and leverage), and
- LT Debt-to-Assets ratio
Section III —A brief evaluation over time of your company’s:
- Cash conversion cycle
- Liquidity
Section IV — A brief (e.g., 1-2 sentence) description of the overall ratio trend and what it
implies for current and future financial performance.