Assignment: Financial Ratio Analysis
Purpose of Assignment
The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.
Select a Fortune 500 Company from one of the following industries:
• Pharmaceutical
• Energy
• Retail
• Automotive
• Computer Hardware
Review the balance sheet and income statement in the company's 2015 Annual Report.
Calculate the following ratios using Microsoft Excel:
• Current Ratio
• Quick Ratio
• Debt Equity Ratio
• Inventory Turnover Ratio
• Receivables Turnover Ratio
• Total Assets Turnover Ratio
• Profit Margin (Net Margin) Ratio
• Return on Assets Ratio
Analyze in 1,050 words why each ratio is important for financial decision making.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.