Question
This project is designed for you to analyze different aspects of a firms operations. You will learn how to use internet resources (the Mergent Online
This project is designed for you to analyze different aspects of a firms operations. You will learn how to use internet resources (the Mergent Online and Morningstar databases), and develop your quantitative and analytical skills. This project weighs 8% of your overall grade. Requirements: 1. Choose a non-financial publicly traded company from the Mergent Online database. Examples of financial firms are banks and financial consulting firms. A banks financial statements are different from a firms financial statements in a non-financial sector. Therefore, dont choose any firms in the banking sectors. A publicly traded company means that it has common equity traded in a stock exchange. Download its balance sheet and income statement for the past 5 years to a spreadsheet from Mergent Online. Put these two financial statements in two separate worksheets in an Excel file. 2. Create another worksheet in the Excel file for financial ratios. 3. Each student calculates 4 different financial ratios (either in the sections of Profitability, Financial Health, or Efficiency Ratios) for the past five years (either 2018-2022 or 2019-2023) in the Excel spreadsheet. The four ratios can be in the same category or in different categories defined below. You can use my template posted on Blackboard with headers of the financial ratios created. The followings are the ratios in each section: Profitability: Gross margin, operating margin, EBT (Earnings Before Taxes) margin, return on assets, and return on equity. Financial Health: Current ratio, financial leverage [defined as =total assets/total stockholders equity, it is the equity multiplier you learn from the text], and debt/equity (defined as long-term debt / total stockholders equity)1 . 1 Morningstar computes debt-to-equity ratio in this way, which may be different from what you see in other
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