What is the general rule of thumb associated is ratio

Assignment Help Finance Basics
Reference no: EM131181467

Assignment

Part 1

Write 250-300 words-word document

Respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions with your classmates. Be substantive and clear, and use examples to reinforce your ideas.

There are basically 5 categories of financial statement analysis that is employed to assess the health of companies related to their financial performance. They are generally classified as liquidity, efficiency, debt, profitability and market-based ratios.

Select 1 of the categories, and discuss the following:

What does each ratio in the category attempt to measure?

What individual ratios does it employ?

List at least 3.

Discuss each of the ratios that you have identified.

How is each calculated?

What does each measure?

What is the general rule of thumb associated is ratio?

How do you know if a ratio is improving or deteriorating?

And what are some of the weaknesses or limitations of each ratio?

Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.

Part 2

250-350 words

If a company grows too fast, it can find itself without access to the resources it needs to meet its obligations. If it grows too slowly, it may find itself missing strategic as well as tactical opportunities. Calculating and understanding a firm's optimal or sustainable growth rate is critical to the goal of maximizing shareholders' wealth and developing an optimal capital structure. You senior analyst has asked you to do some research in this area and to share what you have learned with the other junior analysts on staff through the company discussion board. She has asked you to research and address the following topics in your posts:

What is sustainable growth, and why is it important to calculate and understand this rate?

What is the sustainable growth equation, what are its components, and how is it calculated?

What are the consequences of growing a firm too fast or too slow?

If a company grows too fast, what funding alternatives are generally available?

If a company grows too slow, what steps should it take to maintain its stock price?

Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.

Part 3

1 excel spreadsheet and 600 words -word document

Access the Apple's Web page on the Internet to read its most recent annual report. The annual report is typically found in an "Investor Relations" or "Company Information" section within the company's Web site.

To look up any publicly traded company's documents for additional consideration. Complete the following:

Using the company's financial statements, construct a pro forma income statement and balance sheet for the company using the percentage-of-sales method.

Be sure to include the original statements along with a defendable sales forecast.

Upon completion of the financials, write a paper detailing the process and what you learned about the company as you work through this activity.

Reference no: EM131181467

Questions Cloud

New fragreance-mixing machine : Dane Cosmetics is evaluating a new fragreance-mixing machine. The machine requires an initial investment of $56,000 and will generate after-tax cash inflows of $12,000 per year for 8 years. For each of the costs of capital listed, (1) calculate th..
Regulatory risk and Corruption-bribery and corporate fraud : In order to mitigate the risks associated with 1. Inflation, 2. Legal/regulatory risk 3. Corruption, bribery and corporate fraud for International company entering India. What contingency plan can company come up with in order to handle such risks?
Describing this country''s performance on the hdi : The UNDP Human Development Report is available at its Web site (www.undp.org). Consult this report, and choose a country that is not included in Figure 21.5. Write a paragraph describing this country's performance on the HDI as well as on three ot..
Medium of exchange and a store of value : (i) If there was no item in the economy widely accepted in return for goods and services, how would transactions be made? How efficient would such a system be?
What is the general rule of thumb associated is ratio : What is the general rule of thumb associated is ratio? How do you know if a ratio is improving or deteriorating? And what are some of the weaknesses or limitations of each ratio?
Understand that people form habits and habits form futures : Some of the habits of successful people are: Understand that people form habits and habits form futures. Guard your time like a hawk. Do one thing each day that you do not want to do.
Calculate the optimal size of an order : Hull Baking Company uses 250,000 lb of sugar annually in its cakes and pastries. The company can order the sugar in 100 lb bags, at the cost of $19.50 per bag, delivered. The cost of preparing and sending an order is $50. The storage and handling ..
Four points to support essays thesis statement : Provide an outline or graphic organizer that includes at least four points that will help to support essay's thesis statement;
Does price matching keep consumer prices : Does price matching keep consumer prices lower or higher than prices would have been without price matching?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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