Calculating Financial Ratios

• Vital      to any ratio analysis are the steps of gathering financial data and      selecting and calculating relevant ratios. This assignment provides you      with an opportunity to do just that.

Task:

• Download       a company’s balance sheet and income statement from one of the many sites       where financials are available, such as Zacks Investment Research (https://www.zacks.com/)  or MarketWatch (https://www.marketwatch.com/) .
• Choose       five financial ratios, one from each of the five categories described in       Chapter 3 of Brigham and Ehrhardt (i.e., liquidity, asset management,       financial leverage, profitability, and market value) and look at them       over a three-year period. Put your findings in a table with the years       across the top (horizontal axis) and the ratios along the side (vertical       axis). What do the findings tell you about the financial health of the       company? How does your selected company compare to the industry?
• Calculate       each ratio using the information from the balance sheet and income       statement.

Write a 2–3-page paper that reports your findings. Apply APA standards to citation of sources.

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