STEP 1: The Company Assigned: Thomson Reuters Corporation

Find the audited annual financial statement online for the Canadian public company assigned (use the audited annual financial statements published in February 2022).

The audited annual financial statements obtained from SEDAR must contain audited financial statements and the MD&A (management's discussion and analysis). In SEDAR you should look for the Audited Annual Financial Statements. If complementary data is needed to answer any of the questions of step 2, you can look at any of the following complementary documents: Annual report, MD&A or Annual Information Form also available in SEDAR.

STEP 2: Calculate the ratios using the table provided

Complete the table below by providing the answer to each question in the first column (labelled "Answer"). Your working papers for this part of the term project must include the table below correctly completed. Only when relevant, indicate in the table of your working papers the details of the formula used to calculate each of the financial ratios (for three ratios, it is mandatory as indicated in the table, for the other ratios is optional, use your judgment to decide). For instance, to calculate the Equity Ratio, you must provide the list of the accounts considered as part of the Shareholder's Equity. On the other hand, you are not required to list the accounts considered to calculate Current Liabilities if that label and amount are explicitly listed in the Statement of Financial Position (if it is not listed as such, then you need to provide the name of the accounts considered).

Calculate the following ten ratios and answer the following questions using your own words

Answer	Ratio	Generic Formula	Define details for your assigned company
1)	Equity ratio	Equity Ratio = Shareholders' Equity / Total Assets	Shareholders Equity =
2)	Working Capital Turnover	Working Capital Turnover = Net Sales / Working Capital	Working Capital =
3)	Current ratio	Current Ratio = Current Assets / Current Liabilities
4)	Quick ratio	Quick Ratio = Quick Assets / Current Liabilities	Quick Assets =
5)	Assets turnover	Assets Turnover = Net Sales / Average Total Assets
6)	Interest Coverage	Interest Coverage = Operating Income / Annual Interest Expense
7)	Average Collection Period	Average Collection Period = (Average of Net Trade Accounts Receivable / Net Sales) * 365
8)	Return on Assets	Return on Assets = Operating Income / Total Average Assets
9)	Free Cash Flow	Free Cash Flow = Cash from Operating Activities - Cash used in Investing Activities (including dividends)
10)	Dividend Payout Ratio	Dividend Payout Ratio = Common Dividends per Share / Earnings per Share

Answer these questions based on your overall analysis of the company:

1. What is the profitability position of the company you are analyzing?
2. What is the profitability trend of the company you are analyzing?
3. Based on your profitability analysis, what is your recommendation to investors: hold, buy, sell?

Note 1: When the company assigned to you, due to the nature of its operations, does not have the account needed to perform the calculation of a ratio (for instance, a service company does not have inventory), you must report it as zero when answering the quiz (for instance Inventory turnover = 0).