Group Company Project on JOHNSON & JOHNSON Company

The comprehensive project is to compute financial statement ratios. Based on the Johnson & johnson company ,

complete the following:

1 ) compute the following ratios for two years. You may use Excel to compute your ratios.

1.Debt ratio

2.Gross profit margin

3.Free cash flow

4.Times interest earned

5.Accounts receivable turnover

6.Inventory turnover

2 ) Prepare a DuPont Analysis of ROE for two years, including computations of

1.Return on Sales

2.Asset Turnover

3.Return on Assets

4.Financial Leverage

5.Return on Equity

3 ) Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is:

1.stronger / weaker

2.quicker /slower

3.more / less liquid

4.more / less risk

Write report evaluating trends in all of the above ratios. Discuss whether your company's profitability, efficiency, liquidity, and solvency are improving or deteriorating. Suggest ways the company can improve the ratios that show problems.