Using IBM balance sheet and income statement, create common-size, common base-year, and common-size, common base-year financial statements.

Part IV: Financial Ratios

Using IBM financial statements, calculate the following ratios:

2. Current Ratio
4. Quick Ratio
6. Cash Ratio
8. Total Debt Ratio
10. Debt-Equity Ratio
12. Equity Multiplier
14. Times Interest Earned
16. Cash Coverage Ratio
18. Inventory Turnover (if applicable)
20. Days' sales in Inventory (if applicable)
22. Net Working Capital Turnover
24. Net Fixed Asset Turnover
26. Total Asset Turnover
28. Profit Margin
30. Return on Assets
32. Return on Equity
34. Earnings Per Share (EPS)
36. Price-earnings Ratio
38. Price-sales Ratio

Form an analysis of the firm's liquidity, long-term solvency, asset management, profitability, and market value. Use key concepts from the textbook to explain how your firm is performing in each of these areas.