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Charter Communications is a publically traded company listed on the NASDAQ, complete each part below. PART I Find your company s most current yearly ratios
Charter Communications is a publically traded company listed on the NASDAQ, complete each part below.
PART I
Find your companys most current yearly ratios and compare them to their past years ratios. Only two years of data is required.
Introduction: Why are ratios useful? What are the five major categories of ratios? Remember you might not have all five ratio categories or maybe some ratios might not matter.
Liquidity: Look at the current and quick financial or liquidity ratios. Are they good for your company? How would they be used by management to run the business, investors for valuation purposes, and bankers for lending purposes? Is your quick ratio important or not?
Asset Management: Look at your organizations Days Sales Outstanding DSO inventory turnover and total asset turnover. What are your impressions? Does your organization even have inventory?
Debt: Look at your companys debt position. This includes leverage ratios, etc. Some companies may not have these ratios if they have no debt. What can you conclude from these ratios? It is suggested that you look at total debt and TIE. Total debt is your total liabilities divided by your total assets. Is your organization seasonal, could a slowdown in the economy hurt?
Profitability: Look at your corporations most current operating ratios Profit margin ratios, ROA, and ROE What can you say about these ratios or one in particular? Compare the ratios to the previous year.
Market Value: Look at the most recent PE and marketbook ratio. Do these ratios indicate that investors are expected to have a high or low opinion of the company?
Du Pont Analysis: Discuss the Du Pont analysis for the past two years just using ROA. Has net profit and asset turnover gone up or down? What has ROA done?
Altman ZScore: Calculate your companies Altman ZScore. You can use this template to calculate the ZScore. ZScore Calculation : shows how to calculate this ratio using Yahoo Finance. Is the company solvent or do they have a high chance for failure?
Free Cash Flow FCF: Calculate your firms FCF from the most recent yearly data. Do not forget to use the statement of cash flows to find depreciation and capital expenditures. Morningstar.com gives the latest FCF Has it gone up or down?
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