For week 9, you are instructed to pick a company from the Virtual Organizations found in the Week 9 Materials tab on your website. It is on the sidebar under Links: Library. The purpose of this assignment is to demonstrate knowledge of financial analysis tools we have been learning about. This particular assessment focuses strictly on the problem solving process. You may choose any company found within the Virtual Organization. To find a company you can pick any industry: business, education, healthcare and so on. Click your field choice and select one of the companies that you see in the drop down. Once you are in the site you can gain access to information by clicking around the site. For instance by clicking terms and conditions you gain access to Kudler Fine Foods, Employee Login for Baderman Island Resort etc. Many of these companies do not have all the information you will need on the site. You will have to do real research to find it by going to the company's website, yahoo.finance etc. You also need approval for the company you choose. The due date for this is Sunday evening. Please send yur choice through private message. Any questions you have, feel free to post here.
Resources: Virtual Organizations
Click the Virtual Organization link to access the Virtual Organizations.
Select one of the Virtual Organizations as the basis for this assignment.
Obtain faculty approval of your selected organization before beginning the assignment.
Access the information contained in your selected organization's balance sheet and income statement to calculate the following:
- Liquidity ratios
- Current ratio
- Acid-test, or quick, ratio
- Receivables turnover
- Inventory turnover
- Profitability ratios
- Asset turnover
- Profit margin
- Return on assets
- Return on common stockholders' equity
- Solvency ratios
- Debt to total assets
- Times interest earned
Show your calculations for each ratio.
Create a horizontal and vertical analysis for the balance sheet and the income statement.
Write a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:
- What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?
- Which users may be interested in each type of ratio?
- What does the collected data reveal about the performance and position of the company?