Question
Write detailed analysis and interpretation of the calculated ratios. At a minimum, the calculated ratios should include those listed below. Analyze the 3 most recent
Write detailed analysis and interpretation of the calculated ratios. At a minimum, the calculated ratios should include those listed below. Analyze the 3 most recent fiscal years for this assignment. In your detailed analysis, comment on both the most recent year (current position) as well as the trend over time. Summarize the assignment by answering the following question, What does this analysis tell you about the company and its financial ability? 1. Liquidity a. Quick ratio b. Current ratio 2. Asset Management a. Inventory Turnover Ratio b. Days Sales Outstanding c. Fixed Asset Turnover Ratio d. Total Asset Turnover Ratio 3. Debt management a. Total Debt to Total Capital b. Total Debt to Total Assets c. Debt to Equity Ratio 4. Profitability a. Operating Margin b. Profit Margin c. Return on Total Assets (ROA) d. Return on Common Equity (ROE) e. Return on Invested Capital (ROIC) 5. Market Value a. P/E Ratio b. Market/Book Ratio 6. Dupont Formula (disaggregated ROE) Final Project The final project is a capital budgeting exercise that will require the student to call upon everything learned in the course. The student will analyze a set of mutually-exclusive projects using the methods learned in the course and make a recommendation to management as to which project should be undertaken. The deliverable will be an Excel spreadsheet with 4 tabs, one for each: Cost of Capital, Project A, Project B, and Project C. A specific notation is to be made on the project which the student believes the company should pursue and why.
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