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Why each ratio is important for financial decision making

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Reference no: EM132046315

Question: Purpose of Assignment

The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.

Assignment Steps

Select a Fortune 500 Company from one of the following industries:

• Pharmaceutical

• Energy

• Retail

• Automotive

• Computer Hardware

Review the balance sheet and income statement in the company's 2015 Annual Report.

Calculate the following ratios using Microsoft® Excel®:

• Current Ratio

• Quick Ratio

• Debt Equity Ratio

• Inventory Turnover Ratio

• Receivables Turnover Ratio

• Total Assets Turnover Ratio

• Profit Margin (Net Margin) Ratio

• Return on Assets Ratio

Analyze in 1,050 words why each ratio is important for financial decision making.

Reference no: EM132046315

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