Ratio Analysis Project

The project is an exercise of fundamental analysis of a firm using ratios. You are expected to calculate a number of ratios for a firm and analyze its financial condition.

• Picka non-financial public firm from Dow Jones 30. Retrieve financial statements from finance.yahoo.com.
• Calculate the following ratios for your chosen firm for 2018 and 2019.

Liquidity Ratios:

Current Ratio

Quick Ratio

Cash Ratio

Solvency Ratios:

Total Debt Ratio

Debt-equity Ratio

Times Interest Earned Ratio

Turnover Ratios:

Inventory Turnover

Receivables Turnover

Total Asset Turnover

Profitability Ratios:

Profit Margin

Return on Assets (ROA)

Return on Equity (ROE)

Market values Ratios:

Price-earnings Ratio

Market-to-book Ratio

• Investigate the firm's financial condition in 2019 (by comparing with 2018) in terms of itsLiquidity,Solvency,Turnover,Profitability,andMarket Valuesbyanalyzingthe calculated ratios. How the firm's performancechangedthrough time?Based on your analysis, comment on the future prospect of the firm from aninvestor'sviewpoint.