Identify the major causes of any changes in the ratios

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Reference no: EM133661390

Discussion Post: Financial Analysis

Prior to beginning work on this discussion forum, read Chapter 9 in the course textbook Using Financial Accounting.

Using the same company and annual reports that you chose for your discussion post, Reading and Using the Annual Report Case Study,

1) Calculate the debt-to-equity ratio and times interest earned ratio for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information from the Mergent Online database, available through the UAGC Library, or use another outside resource of your choice, and then analyze the results. Be sure to show your calculations.

a) If needed, review the How to Find Industry Ratios and Averages Using Mergent Online tutorial on how to use the Mergent Online

2) Discuss what each of these ratios tells you about the company's use of debt and how it compares to the industry average.

3) Identify the major causes of any changes in these ratios and discuss your assessment of the company based on these changes.

4) If you were a lender, discuss whether you would you be willing to lend money to the company based on its use of debt.

Reference no: EM133661390

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