Industry averages and financial ratios

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Reference no: EM13747223

Find a publicly-traded company (Microsoft) using a financial information website. For The  Following  Company :

Microsoft

Watch the Industry Averages and Financial Ratios video and use the industry classification from the financial services website to locate the company's SIC code on the U.S. Department of Labor's website.

Find the industry ratios for the company using the Dun & Bradstreet® Key Business Ratios link in the Week 2 Electronic Reserve Readings. If your company's SIC code does not appear in the dropdown menu, choose another company.

Calculate the following ratios for the company using the two most recent annual financial statements found on the financial information website you used earlier. Be careful not to use quarterly information, and include ratios for both years. 

  • Current Ratio
  • Quick Ratio
  • Collection Period
  • Return on Equity (~Net Worth)

Observe the year to year ( 2 years ) trend for each ratio and what it tells you about the organization's financial health.

Compare the ratios for the company you selected with the appropriate industry ratios shown on the Dun & Bradstreet® report.

Write a 1,050-1,400 word response about how the company you selected performed year to year and versus the industry based on what the ratios indicate.

Reference no: EM13747223

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