Find a publicly-traded company using a financial information website. Use General Motors Company.
Watch the Industry Averages and Financial Ratios video 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 Electronics Reserve Readings. If your company’s SIC code does not appear in the dropdown menu, choose another company.
Assume the inventory ratio is based on a traditional inventory system, but globalized markets and the supply chain make it critical to adopt lean principles to create a more efficient system.
Calculate the 14 ratios (show your calculations) 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.
Note: You can access a downloadable Ratio Guide PDF by clicking the Help Guide link in the upper-right of the Dun & Bradstreet Key Business Ratios window.
Compare the ratios for the company you selected with the appropriate industry ratios including profitability, solvency, and efficiency ratios shown on the Dun & Bradstreet report.
Write a 350-word response about how the company you selected performed compared with the industry.
Format with APA guidelines.
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