Company Ratio Analysis

Instructions

Please post your Word document here and your Excel document in the Drop Box.

Company Ratio Analysis, all of the content required to complete the assignment is covered in the first three modules. For this assignment, you are required to conduct a comprehensive ratio analysis.

The ratios you use are up to you, however, please use at least one ratio from each of the six categories.

Then, you will analyze these ratios and take a holistic approach to writing about how the company is performing. To better understand your company’s financial health, be sure to compare to a major competitor or industry averages. Please consult IBIS World for industry information and search for competitor companies on Mergent. There is a tab in Mergent for each company with select financial ratios and you can use them to have some basis to which you can compare your target company. Or you can use a different source. To summarize – you can pull the ratios for the competitor, but be sure to calculate for your chosen company.

Your analysis should focus primarily on the ratios but you have to add in some industry information for background and support. You cannot analyze the ratios without understanding the company and the industry in which it operates. When you understand the company and even venture into the company’s annual report, you will be able to help explain why the ratios are what they are. You should also have a conclusion and recommendations piece to the analysis. That is the “so what.” Tell me what all of your analysis means for the company and its financial performance. Remember to analyze, and not simply give me the play-by-play.

So here is what you need to hand in – You will submit the Excel work to your Drop Box and the written analysis to the Assignments tab:

-CALCULATED RATIOS FOR THE LAST FIVE YEARS FOR YOUR TARGET COMPANY

– Found or calculated ratios for your competitor company. Or, industry averages found.

Writing Rubric
Criterion
Not Acceptable
Needs
Improvement
Satisfactory
Exemplary
The paper is
weak in
organization
and/or
coherence. The
reader cannot
identify a line of
reasoning.
Frequent lapses
in tone and voice.
The writing does
not engage the
reader.
The paper is
generally
organized and
coherent. The
reader can mostly
follow the line of
reasoning.
The paper is well
organized and
coherent
throughout. The
reader can follow
the line of
reasoning.
Tone and voice
are generally
appropriate with
only minor
lapses.
Tone and voice
are professional
and consistently
appropriate
throughout.
Lacking in flow
of thoughts and
ideas.
Minimal flow of
thoughts and
ideas.
Flow of thoughts
and ideas is
generally
consistent.
Flow of thoughts
and ideas is
consistent
throughout.
Word choice is
confusing,
unclear and/or
inappropriate.
Word choice is
poor and/or
inappropriate.
Word choice is
generally clear,
concise and
appropriate.
Word choice is
accurate, clear,
concise and
appropriate
throughout.
Sentence
Structure
Sentences are
fragmented and
incomplete.
Several sentences
are constructed
incorrectly.
Most sentences
are well phrased,
clear and varied.
Sentences are
well phrased,
clear and varied
throughout.
Grammar &
Spelling
No attention
given to grammar
and spelling.
Errors are
frequent and
distracting.
Writing is error
free throughout.
No attention
given to
punctuation and
capitalization.
Errors are
frequent and
distracting.
No apparent
format.
Inappropriate
format and/or
frequent
inconsistency in
application.
Minor errors are
apparent but do
not detract from
or obscure
meaning.
Minor errors are
apparent but do
not detract from
or obscure
meaning.
Writing is error
free throughout.
Appropriate
format but with
minor
inconsistencies in
application.
Unorganized and
incoherent.
Organization
& Coherence
Professional
Tone/Voice
Presentation
of Ideas
Word Choice
Punctuation
&
Capitalization
Format
(Length,
Report,
Essay, APA)
Tone and voice
are inappropriate
throughout.
Writing is error
free throughout.
Appropriate
format
consistently
applied and
artifact within
assigned page
length.
Score*