Question
Obtain the four-digit primary SIC (Standard Industrial Classification) Code and industry title for your company. Record the primary SIC code and industry title at the
Obtain the four-digit primary SIC (Standard Industrial Classification) Code and industry title for your company. Record the primary SIC code and industry title at the top of the Ratio Analysis Worksheet.
B.Obtain industry averages for commonly used ratios in the current period. Industry average information is reported by industry title or SIC code. C.Look up the following industry-average ratios: 1.Current ratio 2.Debt ratio 3.Gross profit margin 4.Times interest earned 5.Accounts receivable turnover 6.Inventory turnover 7.Return on Sales 8.Asset Turnover 9.Return on Assets 10. Financial Leverage 11. Return on Equity Note that some industry averages may not apply to your company. D.Submit a report. 3 page report comparing the above ratios to industry averages. Discuss whether your company's profitability, efficiency, liquidity, and solvency are better than, or worse then, its peers.
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