This assignment is the third part of the course project. In this assignment, you will utilize the two stocks within the same industry that were selected in Module 03.
Required
For the two firms, locate and download their latest annual report. Annual reports are typically found within the ‘Investor Relations’ section of a firm’s website. I I’ve downloaded the reports)
Utilizing the data from each of the firm’s annual reports, calculate the following ratios:
- Liquidity Ratios – Current Ratio and Quick Ratio
- Activity Ratios – Inventory Turnover, Receivables Turnover, Days Sales Outstanding, Fixed Asset Turnover, and Total Asset Turnover
- Profitability Ratios – Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return on Assets, and Return on Equity
- Leverage Ratios – Debt/Net Worth and Debt Ratio
- Coverage Ratios – Times-Interest-Earned
You may utilize a Microsoft Excel document to calculate the ratios for each firm.
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