Post#1 (5 points) Due Wednesday

Select one of the companies and perform the ratio analysis based on the Next Era financial statements. Remember that not all companies will have the required data for every ratio, and some ratios will be more meaningful based on the company, so choose your ratio's carefully. Pay close attention to the formulas to ensure that you are taking the right numbers from the financial statements. When there is an 'average' in a formula, be sure to use this formula for the average: (Prior Year Balance (aka Beginning Balance) + Current Year Balance (aka Ending Balance)) / 2 = Average Balance

Select any 5 ratios from the list below

You must use at least one ratio from each category. Your answer must show all the figures in the formula as well as the result; show the math! Also be sure to indicate your company name.

Liquidity Measures

Current Ratio: Current Assets / Current Liabilities

Accounts Receivable Turnover: Sales / Average Accounts Receivable

Inventory Turnover: Cost of Goods Sold / Average Inventory

Solvency Measures

Debt to Equity (aka ratio of liabilities to stockholders' equity): Total Liabilities / Total Stockholders' Equity

Ratio of Fixed Assets to Long-Term Liabilities: Fixed Assets (net) / Long-Term Liabilities

Profitability Measures

Return on Total Assets: (Net Income + Interest Expense) / Average Total Assets

Return on Stockholders' Equity: Net Income / Average Total Stockholders' Equity

Earnings per Share (EPS) on Common Stock: (Net Income - Preferred Dividends if applicable) / Number of Shares of Common Stock Outstanding

Dividend Yield: Dividends per Share of Common Stock / Market Price per Share of Common Stock

If this is use ratio, you must include a screenshot of the companies current stock price