As you develop your responses to this week’s discussion board, consider the importance of assessing key financial ratios. For instance, Liquidity Ratios can be used to analyze firms’ ability to pay short term debts. The Debt-to-Equity Ratio can be used to assess how much a company depends on borrowed money and its ability to repay loans.
- Task 1 (50 points)
- The team members must evaluate the performance of their company within the simulation using financial and environmental data. They must use financial ratios to determine performance and the necessary corrections. This page explains what financial ratios are.
- The team members must collaborate to agree on what decisions were not effective and how to correct them for the next two rounds.
- Financial ratios to be done using reporting/financial statements attached.
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