Problem: Find General Electric's Annual report.
Calculate the following ratios for the company:
- Return on assets
- Return on equity
- Gross profit margin
- Debt to equity ratio
- Debt ratio
- Current ratio
- Quick ratio
- Inventory turnover
- Total asset turnover
- Price earnings ratio
Using the calculated ratios, analyze the financial performance of the firm. Use the ratios to make comparisons between itself in previous periods as well as against competitors, determine the firm's performance. Write a memo to the CEO detailing the following:
An explanation of the calculated ratios.
Address other methods of analyzing financial statements aside from ratio analysis.
Explain analysis of the firm, and recommendations for improvement.