Module 4 – Assignment 2: Discussion—Financial Analysis

You have conducted a significant amount of research about how to analyze the financial health of a company. Now you are going to put all of your research and discussion into practice. Choose three ratios from each category (liquidity, solvency, and profitability). Calculate the financial ratios for each of your companies. Describe what the results of your calculations reveal about each of your three companies when compared with one another. Answer the following questions with clear explanations as to how you arrived at the answers:

1. Which      company is more liquid?
2. Which      company has the strongest net income?
3. Which      company has the strongest solvency?
4. Which      company is most profitable?
5. Which      company would be the most solid financial investment? Why?

Be sure to cite any sources using APA style.