Question - Suppose you have landed successfully on a good career path full time position as a "Financial Analyst" with a multinational high tech corporation in our Silicon Valley hub.
On your first day on your job, your first project given is ratio/trend analysis of your new employer. Fortunately, you still remember financial analysis techniques discussed in your accounting 1B course final chapter 17, because your instructor required a lot of homework on that chapter not to mention those irritating discussion topics you had to bear all the way to the end of the term.
Which ratios should be used to help answer the following questions?
(a) How efficient is a company in using its assets to produce sales?
(b) How near to sale is the inventory on hand?
(c) How many dollars of net income were earned for each dollar invested by the owners/shareholders?
(d) How able is a company to meet interest charges as they fall due?
Please list as many measures, ratios, and any other analytical procedures you can think of. You do not have limit to our chapter 17 ratios.