Select a company of your choice (preferably a tech firm) listed in a stock market.

Download financial statements (balance sheet and income statement) of the company for the past three years.

Calculate financial ratios (the 12 ratios we studied in the class) from the statements for the past two years (i.e. two sets of ratios).

Search online for industry averages for the ratios you calculated. If industry averages are not available, repeat tasks 2 and 3 for another company that is a direct competitor of the company you chose in step 1.

Perform ratio analysis commenting on the possible reasons behind any deviation from industry averages or those of the competitor for each ratio.

Instructions:

After downloading, edit the statements in either excel, etc., or by hand. Give each entry in the statements a unique number. For example, for income statement: I-1 Revenue, I-2 Cost of goods sold; for balance sheet: B-1 Cash, B-2 accounts receivable and so on.

While calculating ratios use the numbers you assigned to each entry above. For example, Current Ratio = Current Assets/Current Liabilities = B-7/B-12 = 20,000/13,000 = 1.54.