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.

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