Create a table that contain the ratios for the various years

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Reference no: EM131273868

Module- SLP: THE TIME VALUE OF MONEY AND FINANCIAL STATEMENT ANALYSIS

Conducting Financial Ratio Analysis

Select a publicly traded U.S. company that has paid a dividend for at least the last three years, and conduct a financial ratio analysis. You will be using this company for other assignments in this course; thus, please spend adequate time locating a company. Please consider reviewing https://finance.yahoo.com to locate a company. The company must have data available for you to conduct a financial ratio analysis. It's important to select a company in an industry that has industry ratio numbers. You cannot select a privately held company.

Calculate all the following ratios for the company for the past three years and compare them to the appropriate industry benchmarks:

Liquidity ratios:

• Current
• Quick

Asset Management ratios:

• Inventory turnover
• Total assets turnover
• Fixed assets turnover
• Days sales outstanding

Debt Management ratios:

• EBITDA coverage
• Times-interest-earned
• Total debt to total assets

Profitability ratios:

• Return on common equity
• Return on total assets
• Basic earning power
• Profit margin on sales

Market Value ratios:

• Market/book
• Price/earnings
• Price/cash flow

Create a table that contains the ratios for the various years. Then analyze the information. Look at the trends in the ratios and comment on how they compare to the industry benchmarks. Which ratios are strong? Which ratios need improvement? If you were a stock investor, would you buy the company's common stock? Why or why not? If you were a bond investor, would you buy the company's bonds? Why or why not?

SLP Assignment Expectations

You are expected to:

• Describe the purpose of the report and provide a conclusion. An introduction and a conclusion are important because many busy individuals in the business environment may only read the first and the last paragraph. If those paragraphs are not interesting, they never read the body of the paper.

• Answer the SLP Assignment question(s) clearly and provide necessary details.

• Write clearly and correctly-that is, no poor sentence structure, no spelling and grammar mistakes, and no run-on sentences.

• Provide citations to support your argument and references on a separate page. (All the sources that you listed in the references section must be cited in the paper.) Use APA format to provide citations and references.

• Type and double-space the paper.

Whenever appropriate, please use Excel to show supporting computations in an appendix, present financial information in tables, and use the data computed to answer follow-up questions. In finance, in addition to being able to write well, it's important to present information in a professional manner and to analyze financial information. This is part of the assignment expectations and will be considered for grading purposes.

Attachment:- Module_Information.pdf

Reference no: EM131273868

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