Question
You will present a definition of the classification by citing the course text and other scholarly sources. Your paper should include a measure of, and
You will present a definition of the classification by citing the course text and other scholarly sources.
Your paper should include a measure of, and analysis of, financial outcomes based on the ratios for each financial ratio classification (i.e., the liquidity classifications of ratios are based upon the quick and current ratio outcomes).
You will calculate ratios for each classification for the 3 years of data (i.e., the current ratio may have been 1.5 the first year, 1.35 the second year, and .75 in the most recent year). It is based on these results that you will measure financial performance, or trends, from one year to the next. It is imperative that the ratios numbers, and quantitative outcomes, support your analysis.
- Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the liquidity ratios and an assessment of the companys ability to maintain liquidity and the management of current assets and current liabilities. Include the proper assessment of outcomes as positive or negative trends when all ratio outcomes are factored as a group.
Liquidity Ratios
- Current Ratio
- Quick Ratio
- Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the activity ratios and an assessment of the companys ability to maintain liquidity. Include the proper assessment of outcomes as positive or negative trends when all four ratio outcomes are factored as a group.
Activity Ratios
- Inventory Turnover
- Accounts Receivables Turnover
- Total Asset Turnover
- Average Collection Period
- Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the financing ratios. Include the proper assessment of outcomes as positive or negative trends when all three ratio outcomes are factored as a group.
Financing Ratios
- Debt Ratio
- Debt-to-Equity Ratio
- Times Interest Earned Ratio
- Using the data from the price per share data, the Income Statement, and the Balance Sheet, provide the correct calculation for the market value ratios below.
Market Value Ratios
- Earnings per Share (EPS)
- Price Earnings (PE)
- Using the data from the Income Statement and Balance Sheet, provide the correct calculation of these four profitability ratios and an assessment of the companys ability to maintain, if not improve, profitability based on the amounts of equity, assets, and levels of profits from sales. Include the proper assessment of outcomes as positive or negative trends when all four ratio outcomes are factored as a group.
Profitability Ratios
- Return on Equity (ROE)
- Return on Assets (ROA)
- Net Profit Margin
- Operating Profit Margin
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