Business & Finance Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2012 and 2013:
PHASE ONE IP
Type: Individual Project
Unit: Financial Statements and Analysis
Due Date: Mon, 11/23/15
Grading Type: Numeric
Points Possible: 100
Points Earned: 0
Deliverable Length: Word document of 500-800 words with attached Excel spreadsheet
Word document of 500-800 words with attached Excel spreadsheet showing calculations
Library Research Assignment
Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2012 and 2013:
Liquidity Ratios
Current ratio [current assets / current liabilities]
Quick ratio [(current assets inventory) / current liabilities]
Asset Turnover Ratios
Collection period [accounts receivable / average daily sales]
Inventory turnover [cost of goods sold / ending inventory]
Fixed asset turnover [sales / net fixed assets]
Financial Leverage Ratios
Debt-to-asset ratio [total liabilities / total assets]
Debt-to-equity ratio [total liabilities / total stockholders equity]
Times-interest-earned (TIE) ratio [EBIT / interest]
Profitability Ratios
Net profit margin [net income / sales]
Return on assets (ROA) [net income / total assets]
Return on equity (ROE) [net income / total stockholders equity]
Market-Based Ratios
Price-to-earnings (P/E) ratio [stock price / earnings per share]
Price-to-book (P/B) ratio [market value of common stock / total stockholders equity]
You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2012 to 2013, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.
If a ratio decreased from 2012 to 2013, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.
If a ratio was unchanged from 2012 to 2013, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.
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