Question
Using the Form 10-K in Edgar database and the link www.sec.gov/edgar/searchedgar/companysearch.html (Links to an external site.)Links to an external site., calculate the following financial ratios
Using the Form 10-K in Edgar database and the link www.sec.gov/edgar/searchedgar/companysearch.html (Links to an external site.)Links to an external site., calculate the following financial ratios for 2 years (show your work!) and summarize the year over year differences for each of the 5 ratio categories:
Liquidity ratios Current, Quick and Cash
Activity ratios Days Sales in Inventory, Days Sales in Receivables and Total Asset Turnover
Leverage ratios Total Debt, Debt-Equity and Times Interest Earned
Profitability ratios Net Profit Margin, ROA and ROE
Market Value ratios Price-Earn, Price-Sales and Market-to-Book
Use stock price as of the date of your company's Financial Statements.
Use Diluted Weighted Average Shares Outstanding.
2. Go to Morningstar.com (Links to an external site.)Links to an external site. and check your answers in Key Ratios.
3. Go to Yahoo Finance https://finance.yahoo.com/ (Links to an external site.)Links to an external site. and look up your company and one of its industry peers. From "Statistics" list the Price Earnings Ratio, (Net) Profit Margin, Earnings Per Share, Debt/Equity Ratio, Current Ratio, and then compare your company with the industry peer. Would you buy this company? Why?
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