Solution of ratio analysis

Individual Assignment: 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. Resources Required Microsoft® Excel® Content Met Partially Met Not Met Total Available Total Earned 5 #/5 Partially Met Not Met Comments: Selected a Fortune 500 Company from one of the following industries: • • • • • Pharmaceutical Energy Retail Automotive Computer Hardware Reviewed the balance sheet and income statement in the company’s 2015 Annual Report. Calculated 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 Analyzed in 1,050 words why each ratio is important for financial decision making. Writing Guidelines The paper—including tables and graphs, Met Comments: Financial Ratio Analysis Grading Guide FIN571 Version 9 Writing Guidelines Met Partially Met Not Met Total Available Total Earned 3 #/3 8 #/8 headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total # -Contrast the structure and use of various financial statements. -Calculate and interpret key financial ratios. - Interpret a company’s financial results against historical data and industry benchmarks Comments: 2 ...