Compute company-s current ratio and profit margin ratio


Choose a company whose products you use, or a company where you would like to be employed, and obtain its most recent annual report. (Note: Annual reports can usually be found under the "investor relations" area of the company's website.)

1. Using information from the balance sheet and income statement, calculate the company's current ratio and the profit margin ratio.

2. Discuss the significance of the results of your ratio calculations in terms of the company's financial performance (strengths or weaknesses).

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Finance Basics: Compute company-s current ratio and profit margin ratio
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