Discuss a vertical and horizontal analysis

Assignment Help Accounting Basics
Reference no: EM131747997

I'm currently using the information for whole foods market.

For the public company you have selected, please conduct a ratio analysis using both a vertical and horizontal analysis. Please use three years' data. You can find data about your company

For the two main financial statements (Balance Sheet and Income Statement), please use the main categories to find the numbers you'll need to calculate these ratios. I'm sure, by now, you know where to find Revenues, Assets, Expenses, Liabilities, etc. on your company's financial statements.

Select 2 ratios in each category (Liquidity, Solvency, Profitability, Activity, Operating) to explore. Calculate the 3 year's of ratios for your public company. Write a short paper analyzing your results. Prepare to present a summary of your findings in class on 3/14.

I've provided examples in each category, below:

Liquidity Ratios:
1. Quick Ratio or Acid Test Ratio)
2. Receivables Ratio
3. Credit Card Receivables Ratio
4. Accounts Receivable Ratio

Long-Term Solvency Ratios
1. Total Assets to Total Liabilities Ratio and/or Total Liabilities to Total Assets Ratio
2. Total Liabilities to Total Equity Ratio (also called Debt to Equity Ratio)
3. Number of Times Interest Earned

Profitability Ratios
1. Gross Return on Assets
2. Net Return on Assets
3. Net Income to Sales Revenue Ratio
4. Return on Owners' Equity

Activity Ratios
1. Inventory Turnover Ratio
2. Inventory Holding Period
3. Working Capital Turnover
4. Fixed Asset Turnover

Operating Ratios:
1. Food and/or Beverage Cost Percentage
2. Labor Cost Percentage

Reference no: EM131747997

Questions Cloud

Discuss amy makes the following gifts : Assume a tax system with a tax of $1,000 on taxable income of $10,000 and a $1,500 tax on taxable income
How does the value of her car influence this decision : Based on this information, should she buy the policy with the deductible or not? How does the value of her car influence this decision?
Describe the distribution of accidents : At fault. The car insurance company in Exercise 8 believes that about 0.5% of drivers have an at-fault accident during a given year.
Find the true variance in relative humidity in phoenix : Physical Sciences June temperatures in Phoenix, Arizona, routinely soar above 100°F, but residents claim that it is "dry" heat. The low humidity makes outside.
Discuss a vertical and horizontal analysis : the public company you have selected, please conduct a ratio analysis using both a vertical and horizontal analysis
How does foucault define genealogy : How does Foucault define genealogy as a mode of historical critique? What are the qualities and characteristics of genealogy? How does genealogy
Probability model for the outcome on the spinner : a) Create a probability model for the outcome on the spinner. b) Find the mean and standard deviation of the spinner results.
Right-brain language control : Rule to describe how many students in the freshman class might have right-brain language control.
True variance of window thickness for each window : Find a 99% confidence interval for the true variance of window thickness for each window width category. Assume normality.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd