Reference no: EM132447476

Calculating Ratios for Companies Within the Same Industry Select an industry you are interested in and select three companies within that industry. Obtain their annual reports by going to each company's website and downloading the report for the most recent year. (On many companies' websites, yu nee to visit the Inveor R section to obtain the company's financial statementso.) Youwill mayd also collect the information from the company's Form 10-K, which can be found by searching online for "SEC Edgar data-base" and then using that site to locate the Form 10-K of interest to you.

Basic Discussion Questions For each of the three companies you selected, answer the following:

1. Calculate two ratios that measure the ability to pay current liabilities.

2. Calculate at least two ratios that measure the ability to sell inventory and collect receivables.

3. Calculate at least two ratios that measure the ability to pay long-term debt.

4. Calculate at least two ratios that measure profitability.

5. Calculate at least two ratios that help to analyze the stock as an investment.Now that you have crunched the numbers, interpret the ratios. What can you tell about each itsfinancial position, or are all three companies similar to each other?