PHASE ONE IP
Type: Individual Project
Unit: Financial Statements and Analysis
Due Date: Mon, 11/23/15
Grading Type: Numeric
Points Possible: 100
Points Earned: 0
Deliverable Length: Word document of 500-800 words with attached Excel spreadsheet
Word document of 500-800 words with attached Excel spreadsheet showing calculations
Library Research Assignment
Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2012 and 2013:
Current ratio [current assets / current liabilities]
Quick ratio [(current assets – inventory) / current liabilities]
Asset Turnover Ratios
Collection period [accounts receivable / average daily sales]
Inventory turnover [cost of goods sold / ending inventory]
Fixed asset turnover [sales / net fixed assets]
Financial Leverage Ratios
Debt-to-asset ratio [total liabilities / total assets]
Debt-to-equity ratio [total liabilities / total stockholders’ equity]
Times-interest-earned (TIE) ratio [EBIT / interest]
Net profit margin [net income / sales]
Return on assets (ROA) [net income / total assets]
Return on equity (ROE) [net income / total stockholders’ equity]
Price-to-earnings (P/E) ratio [stock price / earnings per share]
Price-to-book (P/B) ratio [market value of common stock / total stockholders’ equity]
You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2012 to 2013, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.
If a ratio decreased from 2012 to 2013, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.
If a ratio was unchanged from 2012 to 2013, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
The post locate publicly traded us company your choice then calculate following ratios company 2012 a appeared first on Essay Writers.