Using the Internet, and course materials, research and find a company to analyze. Prepare a report including the following information:
Problem 1. What is the history of this company? How did it begin? What differentiates this company from its competitors?
Problem 2. Compute the following ratios for this company:
- current ratio
- inventory turnover ratio
- accounts receivable turnover ratio
- debt to equity
- return on assets
- return on equity
- gross margin on sales
Problem 3. What do these ratios indicate about the company?
Problem 4. Who would be interested in each of the ratios listed above? Why?
Problem 5. How well is this company doing? If possible, find the industry ratios for comparison.
Problem 6. What other information would be useful for investors and creditors in making economic decisions about this company?
Problem 7. Would you invest in this company?