Assignment
Case Study Paper Guidelines
1. Company Profile (brief history, current chief officers, major business activity, and type of industry).
2. Calculate the company's debt management ratios for the last 3 financial periods, i.e., 2015, 2016, and 2017:
a. Debt Ratio: measures the percentage of funds provide by creditors, calculated as:
Total Debt ÷ Total Assets; or (Total Assets - Total Equity) ÷ Total Assets
b. Times Interest Earned: measures the ability of the firm to meet its interest payments:
Earnings before Interest and Tax (EBIT) ÷ Interest Charges
3. Calculate the company's liquidity ratios for the last 3 financial periods, i.e., 2015, 2016, and 2017:
a. Current Ratio: indicates the extent to which current liabilities are covered by assets, calculated as:
Current Assets ÷ Current Liabilities
b. Quick Ratio: indicates firm's ability to pay off its current liabilities without relying on inventories:
(Current Assets - Inventories) ÷ Current Liabilities
4. Calculate the company's profitability ratios for the last 3 financial periods, i.e., 2015, 2016, and 2017:
a. Net Profit Margin on Sales or Revenue: measures net income per dollar of sales, calculated as:
Net Income ÷ Sales or Revenue
b. Return on Total Assets (ROA): measures the overall return on investment:
Net Income ÷ Total Assets
c. Return on Common Equity (ROE): measures the rate of return on common stock:
(Net Income - Preferred Dividends) ÷ Common Equity
5. Give an explanation for each of the ratios you calculated, i.e. what might have caused the ratios to rise or fall.
6. Based on the ratio results, analyze how your company's performance compared to its closest competitor.
7. Give a brief analysis about the firm's Capital Structure.
8. Give a brief analysis about the firm's Net Working Capital.
9. Give a brief overview on the company's stock performance during this academic semester.
10. As a finance student, what is your personal opinion about the overall financial position of the company?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.