Financial Ratio Analysis

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. 

Submit your analysis as well as your calculations.