Question
I need some help with this. I am not good at the ratios and don't quite understand how this works. This assignment aims to help
I need some help with this. I am not good at the ratios and don't quite understand how this works. This assignment aims to help students understand how financial ratios are calculated and analytically present this information. In addition to demonstrating how the balance is calculated, each student should be able to explain two types of significance: forensic/financial health and strategic importance to the firm. Given the nature of the analysis, the paper should be 16 pages. (This would be 1 page for each ratio, the executive summary, cover page, and work cited page.) List of Approved Companies for the Analysis Spirit Aerosystems Holdings (SPR), Lockheed Martin Corporation (LMT), Caterpillar Inc. (CAT), Clorox (CLX), YUM Brands (YUM), Abbot Laboratories (ABT), Gilead Sciences (GILD) Pfizer (PFE) Raytheon Technologies Corp. (RTX) Phillips 66 (PSX) Target Inc. (TGT) The Coca-Cola Company (KO) Students should use the electronic resources provided by the library to compile the information necessary for this assignment. Use database information such as Mergent Online, Nexis Uni, Wall Street Journal Online, Yahoo! Finance, D&B Hoovers, Value Line Investment Survey, and other online financial resources. The paper should include the following: Cover Sheet (APA formatting) Executive Summary: 1.5 to 2.0 pages(double-spaced), provides a summary of the complete analysis of the rest of the paper. Analysis of financial ratios of the selected company and competitor includes: Line graph of a three-year trend for most recently available data (company & competitor in a combined chart) Table of the financial data which computes the financial ratio for selected firm only 5-6 sentence paragraph of how the financial ratio provides strategic information for the management decision-making 5-6 sentence paragraph on the forensic/financial health of the company The financial ratios to include in the paper Return on Equity Return on Assets Profit Margin Basic Earnings Power Current Ratio Quick (Acid-Test) Ratio Days Sales Outstanding Inventory Turnover Total Asset Turnover Debt to Total Capital Ratio Times Interest Earned Ratio
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