Liquidity, Profitability and Solvency Analysis:

Go to the SECs EDGAR database to find a companys current 10-K form. Do not use a 10-K filing that was not filed in the current year. (For example, choose a companys 12/31/2017 10-K filing, filed in 2018.)

The SECs EDGAR database is located here:

https://www.sec.gov/edgar/searchedgar/companysearch.html

Use the Company Search to locate your company. Then, enter 10-K in the Filing Type box to find the latest filing.

Read the 10-K and use it to calculate the following ratios. Be sure to clearly label and show your calculations and reference the information from the 10-K in APA format.

A) Compute the following liquidity ratios for your selected company:

Current ratio

Accounts receivable turnover

Average collection period

Inventory turnover (if the company does not have inventory, note and skip)

Days in inventory (if the company does not have inventory, note and skip)

Current cash debt coverage

B) Compute the following solvency ratios for your selected company:

Debt to asset ratio

Times interest earned

Cash debt coverage

Free cash flow

C) Compute the following profitability ratios for your selected company:

Profit margin

Asset turnover

Return on assets

Return on common stockholders equity.

D) Interpret your findings for the ratio comparatives analysis your selected company.

E) Evaluate what, if any, options with regard to financial activities your company should consider (i.e., how can the company improve financial performance)? What impact would each of these have on the above ratios?