1,750–2,000 words (not including title and reference pages) APA
Find a
manufacturing company’s annual report.
Calculate the following ratios for the company that you select:
Return on assets
Return on equity
Gross profit margin
Debt to equity ratio
Debt ratio
Current ratio
Quick ratio
Inventory turnover
Total asset turnover
Price earnings ratio
Using the calculated ratios, analyze the financial performance of
the firm. You will do this by looking at the ratios and comparing them to
ratios from previous periods and in some cases, against their competitors. Keep
in mind that you are trying to determine how the firm is performing under each
of the listed ratios. In a memo to the chief executive officer (CEO), include
the following:
You are to calculate the ratios
for the company and analyze those ratios.
Find a
manufacturing company’s annual report.
MUST BE IN THIS Format:
I.Part 1 –
Give an overview of what is going to be discussed in the memo
II.Part II – Heading – Ratio Analysis Explanation –
Explain the proper way to use ratio analysis and the users of ratio analysis
III.Part III – Heading – Ratio Calculation – List
the ratio, the formula, the amount
calculated.
IV.Part IV –
Heading – Evaluation of the Ratios –
Evaluate the ratios, find a similar company similar to compare your calculated ratios, discuss
what the company is doing well and how the company can improve
V.Part V – Heading – Other Financial Analysis –
Discuss other ways to analyze Financial statement s other than ratios and with
other ratios not listed.
VI.Part VI – Heading – Recommendations for
Improvements
VII.References
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