Part III: Common Size Statements

Using IBM balance sheet and income statement, create common-size, common base-year, and common-size, common base-year financial statements.

Part IV: Financial Ratios

Using IBM financial statements, calculate the following ratios:

1. Current Ratio
2. Quick Ratio
3. Cash Ratio
4. Total Debt Ratio
5. Debt-Equity Ratio
6. Equity Multiplier
7. Times Interest Earned
8. Cash Coverage Ratio
9. Inventory Turnover (if applicable)
10. Days' sales in Inventory (if applicable)
11. Net Working Capital Turnover
12. Net Fixed Asset Turnover
13. Total Asset Turnover
14. Profit Margin
15. Return on Assets
16. Return on Equity
17. Earnings Per Share (EPS)
18. Price-earnings Ratio
19. Price-sales Ratio

Form an analysis of the firm's liquidity, long-term solvency, asset management, profitability, and market value. Use key concepts from the textbook to explain how your firm is performing in each of these areas.