How has the firm financed the asset

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Reference no: EM133491916

For your project, choose any publicly traded (listed in DSE or any other exchange in the world) company. Get the last 3 years of Data and answer the following questions (There are only 10 ratios that you need to calculate to answer the 5 questions):

Question 1. How liquid is the firm? Given the last 3 years data, what kind of assessment can you make on the firms ability to pay its bill? [Ratios to use: Quick Ratio, Inventory Turnover Ratio and average collection period]

Question 2. How has the firm financed the asset? Given the last 3 years data, what kind of assessment can you make on its leverage? what kind of assessment can you make on the firms ability to pay its bill? [Ratio to use: Debt Ratio, Interest Coverage Ratio]

Question 3. How efficient the management of the firm has been in generating sales using its asset over the period of last 3 years?[Ratio to use: Total Asset Turnover]

Question 4. Has the firm earned adequate returns on its investment? What has been the trend over the last 3 years?
[Ratio to use: Operating Profit Margin, Net Profit Margin, ROE]

Question 5. Are the firm's management creating value for it shareholders in terms of market value?
[Ratio to use: P/E ratio]

Reference no: EM133491916

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