Calculate the financial ratios for the assigned company

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Reference no: EM13922366

Review the assigned company's financial statements from the past three years.

Calculate the financial ratios for the assigned company's financial statements, and then interpret those results against company historical data as well as industry benchmarks:

Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011).

Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.

Write a 500 to 750 word summary of your analysis.

Show financial calculations where appropriate.

Amazon

Calculate key ratio equations

Liquidity

Current ratio

Quick ratio

Cash ratio

Efficiency

Inventory turnover

Day's sales in inventory

Accounts receivable turnover

Day's sales outstanding

Total asset turnover

Fixed asset turnover

Leverage

Total debt ratio

Debt-to-equity ratio

Equity multiplier

Times interest earned

Cash coverage

Profitability

Gross profit margin

Operating profit margin

Net profit margin

EBIT return on assets

Return on assets (ROA)

Return on equity (ROE)

Market value indicator

Earnings per share

Price-earnings ratio

DuPont equation

ROE = Net Profit Margin x Total Asset Turnover x Equity Multiplier

ROE = (Net Income / Net Sales) x (Net Sales / Total Assets) x (Total Assets / Total Equity)

Interpret financial ratio results

Interpret financial ratio results against historical company data.

Interpret financial ratio results against industry benchmarks

Reference no: EM13922366

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