Which users may be interested in each type of ratio

Reference no: EM131002403

Resources: Virtual Organizations

Click the Virtual Organization link to access the Virtual Organizations.

Select one of the Virtual Organizations as the basis for this assignment.

Obtain faculty approval of your selected organization before beginning the assignment.

Access the information contained in your selected organization's balance sheet and income statement to calculate the following:

Liquidity ratios

Current ratio

Acid-test, or quick, ratio

Receivables turnover

Inventory turnover

Profitability ratios

Asset turnover

Profit margin

Return on assets

Return on common stockholders' equity

Solvency ratios

Debt to total assets

Times interest earned

Show your calculations for each ratio.

Create a horizontal and vertical analysis for the balance sheet and the income statement.

Write a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:

What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?

Which users may be interested in each type of ratio?

What does the collected data reveal about the performance and position of the company?

Format your memo consistent with APA guidelines.

Reference no: EM131002403

Questions Cloud

At what speed should he cycles so that he reaches his office : A man cycles with a speed of 10 km/h and reaches his office at 1 p.m. However, when he cycles with a speed of 15 km/h, he reaches his office at 11 a.m. At what speed should he cycles so that he reaches his office at 12 noon?

Problem regarding the phenomenological grounds : On phenomenological grounds, and from past experience, a gamma distribution has been postulated for the population from which the data was sampled. The population parameters are unavailable. Carry out an A-D test to validate this probability mo..

Implement changes to improve the quality of health care : In a 1-2 page paper, analyze at least two obstacles hospital administration may face as they implement changes to improve the quality of health care

Obtain long term income to finance ongoing projects : An engineering company in Virginia that owns 250 acres of valuable land has decided to lease the mineral rights to a mining company. The primary objective is to obtain long term income to finance ongoing projects 5 and 15 years from the present time...

Which users may be interested in each type of ratio : What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?

Companies occasionally sell more than one security : Companies occasionally sell more than one security for a single price. How is the issue price allocated among the separate securities?

Problem based on first-order linear system : Consider the Problem based on first-order linear system. Show that the solution for t ≥ 0 is x(t)= β (t - τc)+(x0 + βτc)eAt. Make an accurate sketch of u(t) and x(t) (versus t) on the same graph, for x0 = 0, β = 3 and A = 0.5.

Mean time between occurrences of safety violations : (i) Carry out a two-sample t-test to compare the mean time between occurrences of safety violations for operator "A" to that for operator "B"; carry out a second two-sample t-test comparing the means for operator "A" to that for operator "C". ..

What factors should perkins and balkin consider : What factors should Perkins and Balkin consider when setting the wage for the purchasing agent position? What resources are available for them to consult when establishing this wage

User Account

All Pages