Project 1.
1. Please collect data of financial ratios for seven stocks for U.S. non-financial firms from yahoo finance or morningstar.
a) Interpret the ratios following the format and items below.
b) Fill in the following information for the seven non-financial companies of your choice.
Company name
Firm 1Firm 2Firm 3Firm 4Firm 5Firm 6Firm 7
Current Ratio
Debt/Equity Ratio %
Asset Turnover( format should be like this X.XX )
Profit Margin % (if you can find it you can use net income margin)
Price to Earning( for this you can useTrailing P/E)
Market to Book
Closing Stock price (Feb. 1st, 2018)
2. Please explain the ratios of the all firms to the potential investors of these seven stocks.(Use the structure of the textbook and compare them with the industry averages, if possible)
Short-term solvency or liquidity ratios: .
Long-term solvency or financial leverage ratios:
Asset management or turnover ratios:
Profitability ratios:
Market value ratios:
For example , explanation :
If a Current ration1.24 . Current ration should be over 1. Current ration is normal between 1-2.
Or
Market to Book is 23 and not really good because it shows blab la bla, it should be a single digits, because blab la bla...