Compute the quick ratio using the balance sheet

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Reference no: EM131036998

Ratio Analysis Assignment

Choose a public company for which financial data are available. Avoid service companies such as AT&T, Sprint, Verizon, etc. Each student works with a different company.Use the most recent period data available for the computations. You need to get your company selection authorized by me.

1. In your own words, write a brief (one paragraph) description of the company. Copying from the company's reports is not acceptable.

2. Collect data on the company's balance sheet and income statement for the latest year. Copy them on an Excel file. This is required. Attach relevant pages from the company book/website with your submission.

3. Using MS Excel, compute (not just report from a source) the following ratios using the balance sheet and income statement data you collected

1. Quick ratio
2. Inventory turnover
3. Debt ratio
4. Net profit margin
5. Return on Investment (or assets)
6. Return on equity
7. P/E ratio

4. Compute ROI and ROE using Du Pont Analysis (not using the definition).

NOTE: Use Ms Excel for both the report (#1) and the computationsand submit via e-Courses. Make one worksheet (or tab) for the report (#1 above) and another one for the computations. The computations should be verifiable by pointing the cursor to the cell where the result is recorded. Report data sources at the end and cite all references used.

Submission in MS Word or any other software will not be accepted

Resources:

1. Company website
2. www.finance.yahoo.com
3. www.hoovers.com
4. www.moneycentral.msn.com
5. Google.

Reference no: EM131036998

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