Calculate all the ratios for the company

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Conducting Financial Ratio Analysis 

Select a publicly traded U.S. company that has paid a dividend for at least the last three years, and conduct a financial ratio analysis. You will be using this company for other assignments in this course; thus, please spend adequate time locating a company.

The company must have data available for you to conduct a financial ratio analysis. It's important to select a company in an industry that has industry ratio numbers. You cannot select a privately held company.

Calculate all the ratios for the company for the past three years and compare them to the appropriate industry benchmarks: 

Liquidity ratios:

  • Current
  • Quick 

Asset Management ratios:

  • Inventory turnover
  • Total assets turnover
  • Fixed assets turnover
  • Days sales outstanding

Debt Management ratios:

  • EBITDA coverage
  • Times-interest-earned
  • Total debt to total assets

Profitability ratios:

  • Return on common equity
  • Return on total assets
  • Basic earning power
  • Profit margin on sales 

Market Value ratios:

  • Market/book
  • Price/earnings
  • Price/cash flow

Create a table that contains the ratios for the various years. Then analyze the information.  Look at the trends in the ratios and comment on how they compare to the industry benchmarks.  Which ratios are strong?  Which ratios need improvement?  If you were a stock investor, would you buy the company's common stock?  Why or why not?  If you were a bond investor, would you buy the company's bonds?  Why or why not?

Reference no: EM13788876

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