Financial Ratio Analysis in the Real World

Description

No more than 1600 words  Approx. 5 pages, double-spaced Up to 3 pages of appendices/statements Details: As individuals, select a company and perform a basic ratio analysis to evaluate its performance. You can select any company for which you can find financial statements. Most public companies post their financial statements on their corporate websites; selecting a company that does this would work well as you could include a link to the financial statements in your assignment. These companies usually publish their ratios or have their ratios already calculated by websites that provide information to investors. This means that you do not have the calculate the ratios but can use this information to discuss what the ratios tell you about the performance of the company. Using published financial statements and ratios, discuss what the following ratios tell you about the company: profitability ratios, including return on equity, current ratio, acid test ratio, age of inventory or age of accounts receivable, net worth to total assets, debt to equity ratio, sales, asset, and profit growth, and the sources of financing are being used by the company. Based on this analysis, evaluate the company’s performance on a scale of 1 to 5, with 5 being the strongest. Explain your answer. PS – When determining the sources of financing, look for changes in things like debt, retained earnings, and financing activities such as sales of shares, in other words, the items in a cash flow statement.