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Understanding how to analyze financial statements can be very helpful to the entrepreneur. Financial analysis helps to understand the financial health of a company. For
Understanding how to analyze financial statements can be very helpful to the entrepreneur. Financial analysis helps to understand the financial health of a company. For this assignment, you will analyze the financial statements of a publicly traded company. Instructions: Choose a publicly traded company that is listed on a stock exchange (e.g. NYSE, NASDAQ). Research the company and gather its financial statements for the past 3 years (Income statement, balance sheet, and cash flow statement) Analyze the financial statements and calculate the following financial ratios: Current ratio Debt to equity ratio Return on assets (ROA) Gross profit margin Net profit margin Compare the calculated ratios with industry averages and/or the company's historical data. Using the financial ratios and other information you have gathered, write a report that includes the following: A brief overview of the company and its industry A detailed analysis of the company's financial statements including the calculated ratios Your assessment of the company's financial health based on the analysis Recommendations for improvement if necessary
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