Question
Please review the financial ratios introduced in your textbook on Table 2.6 and used for the Chapter 2 in-class assignment. For this assignment, you are
Please review the financial ratios introduced in your textbook on Table 2.6 and used for the Chapter 2 in-class assignment. For this assignment, you are to create a table as exampled below, performing a financial statement ratio analysis on the company assigned to you. Please use the Dominons Pizza 2021 annualized data and include the formula used for your calculations in addition to your answer.
Ratio | Formula Used | Answer |
Current | Current assets/Current liabilities | |
Quick | ||
Days Sales Outstanding (DSO) | ||
Fixed Assets Turnover | ||
Total Assets Turnover | ||
Debt Ratio | ||
Times Interest Earned (TIE) | ||
Net Profit Margin | ||
Return on Assets (ROA) | ||
Return on Equity (ROE) | ||
Price/Earnings Ratio (P/E) |
After finishing a table for your company, use your ratio analysis to compare the firms in your group. You will have to collaborate with your group to get the data you need. Answer the following questions:
Is your company more or less liquid than its competitors?
How does your company compare in terms of utilizing its assets?
How does your company's net profit margin compare to that of it's competitors?
How does your company's P/E ratio compare? What could this mean?
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