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Introduction: Ratio analysis provides investors with took to analyze a company's financial statements as it relates to risk, reward (profitability), solvency, and how well a

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Introduction: Ratio analysis provides investors with took to analyze a company's financial statements as it relates to risk, reward (profitability), solvency, and how well a company operates. Investors generally use ratios to evaluate companies and make comparisons between companies within an industry. Ratio analysis simplifies the process of comparing the financial statements of multiple companies. Instruction: Select one public listed company and download their annual report. Companies in the Fortune 500 are strongly suggested. Examine their financial statement and cakulate and compare the following ratio for 2 years using their financial statement and interpret them: 1) Liquidity Ratio a. Current ratio b. Quick ratio 2) Activity Ratio a. Receivable turnover b. Payable turnover c. Inventory turnover 3) Profitability Ratio a. Profit margin b. Return on asset 4) Debt Ratio

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