Calculate at least two ratios that measure profitability

Reference no: EM133650624

Assignment

Mini Case: Calculating ratios for companies within the same industry

Select an industry you are interested in and select three companies within that industry. Obtain their annual reports by going to each company's website and downloading the report for the most recent year. (On many companies' websites, you will need to visit the Investor Relations section to obtain the company's financial statements.) You may also collect the information from the company's Form 10-K, which can be found by searching online for "SEC Edgar database" and then using that site to locate the Form 10-K of interest to you.

Task

For each of the three companies you selected, answer the following:

Question A. Calculate two ratios that measure the ability to pay current liabilities.

Question B. Calculate at least two ratios that measure the ability to sell inventory and collect receivables.

Question C. Calculate at least two ratios that measure the ability to pay long-term debt.

Question D. Calculate at least two ratios that measure profitability.

Question E. Calculate at least two ratios that help to analyze the stock as an investment.

Now that you have crunched the numbers, interpret the ratios. What can you tell about each company and its financial position? Is one company clearly better than the others in terms of its financial position, or are all three companies similar to each other?

Reference no: EM133650624

Questions Cloud

How important do you think the issue is : Will companies become more transparent, or is sustainability reporting going to be mostly on internal reports? How important do you think this issue is?

Nitrogen is critical component of what organic compounds : Nitrogen is a critical component of what organic compounds? lipids and carbohydrates proteins and carbohydrates lipids and DNA proteins and DNA

What are veronicas responsibilities as management accountant : What is(are) the ethical issue(s) in this situation? What are Veronica's responsibilities as a management accountant? Are there any mitigating circumstances?

Plant communities change over time : Plant communities change over time. What is the difference between primary and secondary succession?

Calculate at least two ratios that measure profitability : Calculate at least two ratios that measure the ability to sell inventory and collect receivables. Calculate at least two ratios that measure profitability.

Concerns and indicate the need for further testing : A quad screen may detect which of the following concerns and indicate the need for further testing?

Dry skin inflammation of the skin : Dry skin Inflammation of the skin Thickening of the skin Excessive discharge of oil from the glands of the skin

What is the performance profile of an investment in company : What is the performance profile of an investment in this company? What return would you have earned investing in this company's stock?

Serving of food is generally expressed in grams : Select all that apply The quantity of each macronutrient in a serving of food is generally expressed in grams.

User Account

All Pages