Perform a ratio analysis of microdrive

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Reference no: EM131843110

For this assignment you will perform a ratio analysis of MicroDrive, Inc. The attached spreadsheet contains the financial statements which have also been converted into common size and percentage change formats.

You will build a one sheet model to compute the ratios presented in the chapter for the years presented. The ratios should be grouped according to the five categories presented in the textbook.

You will use the data to conduct a financial ratio analysis which includes comparing the ratios over the two years and comparing to the industry average.

Your analysis should include a discussion of the ratios by category. A final overall summary should discuss the future impact on the business if the trends continue.

The model sheet columns and rows should be clearly labeled showing the equation for each formula. You should have a column for each year, the industry and a performance rating for each ratio, such a strong, weak, poor, etc). This will assist with the analysis of the ratios.

Each factor of the equation should be presented separately. For example Current Ratio = Current Assets / Current Liabilities.

When presenting you will create a cell which shows the CA, one that present the current liabilities, and one for the result. All original numbers used should reference a cell from the financial statements tab. Points will be deducted if all requirements are not met.

Attachment:- chapter-3-microdrive.rar

Reference no: EM131843110

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