Is it a good or bad sign that the ratio increased

Assignment Help Finance Basics
Reference no: EM131178602

Library Research Assignment

Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2014 and 2015:

• Liquidity Ratios

o Current ratio [current assets / current liabilities]
o Quick ratio [(current assets - inventory) / current liabilities]

• Asset Turnover Ratios

o Collection period [accounts receivable / average daily sales]
o Inventory turnover [cost of goods sold / ending inventory]
o Fixed asset turnover [sales / net fixed assets]

• FinancialLeverage Ratios

o Debt-to-asset ratio [total liabilities / total assets]
o Debt-to-equity ratio [total liabilities / total stockholders' equity]
o Times-interest-earned (TIE) ratio [EBIT / interest]

• Profitability Ratios

o Net profit margin [net income / sales]
o Return on assets (ROA) [net income / total assets]
o Return on equity (ROE) [net income / total stockholders' equity]

• Market-Based Ratios

o Price-to-earnings (P/E) ratio [stock price / earnings per share]
o Price-to-book (P/B) ratio [market value of common stock / total stockholders' equity]

You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2014 to 2015, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.

If a ratio decreased from 2014 to 2015, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.
If a ratio was unchanged from 2014 to 2015, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.

Reference no: EM131178602

Questions Cloud

Investigation is being performed on a particular type : Analyze the notion that if an investigation is being performed on a particular type of system (e.g., Windows, Mac, etc.) that it is best for the investigator to have the same type of system for his/her system. Determine whether or not you believe ..
How does the study of the bible in an academic setting : Write a reflective response to the question: 350 words APA 6th ed. Cover page 12 point font reference page How does the study of the Bible in an academic setting (college classroom) compare to a study of the Bible in a devotional setting (personal..
Minimize impacts of given activities on financial statement : Write a paper that addresses how these questions relate to the case.- Include suggestions for what can be done to minimize the impacts of such activities on the financial statement.
Examine the risk factors and the various protective factors : Examine the risk factors and the various protective factors that may mitigate the level of risk. Identify any gender differences that impact the salience of these factors.
Is it a good or bad sign that the ratio increased : You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2014 to 2015, why do you think that it increased? Is it a good or bad sign that the ratio increased?
Speculate as to whether or not the agency conflict discussed : Speculate as to whether or not the agency conflict discussed in the scenario could become a roadblock to your conclusions. Provide a rationale for your response.
System forensics specialist : From the first e-Activity, thoroughly describe the Macintosh systems forensics tool you researched, including its functions, advantages / disadvantages, and cost. Explain why you would consider utilizing this tool as a system forensics specialist,..
Describe medical treatments based on biological aspects : Christian Worldview Implications: The third main section of your paper should discuss biological aspects of the addictive substance/behavior from a biblically informed Christian worldview. Include areas of freedom and caution for Christian counse..
Explain to me what inside local : Explain to me what Inside Local, Inside Global, Outside Local, and Outside Global addresses are and how they are used with NAT?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the projected inventory turnover ratio

All dollars are in millions. What is the projected inventory turnover ratio for the coming year?

  What is the relationship between risk and return

What is the relationship between risk and return and between the value of home currency and the level of lnterest rate.

  Estimate of the stock current price

The company's stock has a beta of 1.8, the risk-free rate is 3.5%, and the market risk premium is 6%. What is your estimate of the stock's current price? Round your answer to the nearest cent.

  Are there any conflicts between the goals of the investor

As an investor what are the benefits and ramifications of purchasing convertible debt in a publicly traded company? Are there any conflicts between the goals of the investor and the goals of the corporation?

  A company consists of 800 per unit in variable costs and

a company has 8.00 per unit in variable costs and 4.00 per unit in fixed costs at a volume of 50000 units. if the

  Two mutually exclusive projects

Zellars, Inc. is considering two mutually exclusive projects, A and B. Project A costs $75,000 and is expected to generate $48,000 in year one and $45,000 in year two.

  Youve taken out 2500000 in student loans if you make

youve taken out 25000.00 in student loans. if you make monthly payments over 15 years at 7 percent coumponded monthly

  Confidence interval for a population proportion

When a confidence interval for a population proportion is constructed for a sample size n = 100 and the value of, p =.p = .4 the interval is based on the

  Swanson inc bonds have a 10 coupon rate with semi-annual

swanson inc. bonds have a 10 coupon rate with semi-annual coupon payments. they have 12 and 12 years to maturity and a

  What was the total value represented by one e-mini

a. Recently, the E-mini contract closed at 2065. What was the total value represented by one E-mini S&P contract as of the day of that close?

  How much life insurance should he buy

And then rounding up to the next $50,000 how much life insurance should he buy?

  What is the npv of this project

Suppose that to raise the funds for the initial investment, the project is sold to investors as an all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way—that is, what is t..

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