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.