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In this assignment, look at the financial statements of your chosen company and calculate some basic financial ratios to analyze the companys health and performance.

In this assignment, look at the financial statements of your chosen company and calculate some basic financial ratios to analyze the companys health and performance.

  • Fill in the table below with information from the financial statements provided in your chosen companys case study. Calculate the % change between the current year and previous year for each item. Remember to correctly identify the currency for your case study.

Most Current Year

% Chg (+/)

Previous Year

Current Assets

Total Assets

Current Liabilities

Total Debt

Sales/Revenue

Cost of Goods Sold

Inventory

Net Income/Loss

  • From the information in the table above, identify which line items are increasing with a plus sign and which are decreasing with a minus sign. Evaluate whether the change from the previous year is good or bad for the companys performance and explain why.

  • Use the information in the table above to calculate the following financial ratios. Explain what the result of each ratio says about your chosen companys financial health.
    • Current Ratio

  • Debt to Asset Ratio (Debt Ratio)

  • Inventory Turnover

  • Return on Sales (Profit Margin)

  • Summarize your information and identify potential problem areas as reflected in the financials.

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