ONLY FOR TUTORS WITH VAST KNOWLEDGE IN RATIO ANALYSIS.
The Appendix of the textbook (pages 240-241) includes an extensive list of key financial ratios. Your group assignment this week is to calculate all of the ratios listed in the appendix and to write an accompanying narrative in which you use those ratios to evaluate the company's financial health. There is no word count requirement, but you should be thorough in your answers.
I recommend searching Yahoo Finance and Google Finance, as well as the most recent annual report of your company. Be sure to cite all sources quoted or consulted.
THE RATIO ANALYSIS NEEDS TO BE ON EXCEL SPREADSHEET AND THE WRTIIEN ANALYSIS IN A WORD DOCUMENT. I WILL LIST THE RATIO ANALYSIS BELOW. IT IS FOR PROFITABILITY RATIOS.
HERE ARE THE DIFFERENT PROFITABILITY RATIOS BELOW
1. GROSS PROFIT MARGIN= SALES REVENUES-COST OF GOODS SOLD/SALES REVENUE
2. OPERATING PROFIT MARGIN (OR RETURN ON SALES)= SALES REVENUES-OPERATING EXPENSES/SALES REVENUES
3. NET PROFIT MARGIN (OR NET RETURN ON SALES)- PROFITS AFTER TAXES/SALES REVENUES
4. TOTAL RETURN ON ASSETS- PROFITS AFTER TAXES + INTESTEST/TOTAL ASSETS
5. NET RETURN ON TOTAL ASSETS (ROA)= PROFITS AFTER TAXES/TOTAL ASSETS
6. RETURN ON INVESTED CAPTIAL (ROIC)--SOMETIMES REFERRED TO AS RETURN ON CATIAL (ROCE)= PROFITS AFTER TAXES/ LONG TERM DEBT+TOTAL STOCKHOLDERS' EQUITY
7. RETURN ON INVESTED CAPTIAL (ROIC)--SOMETIMES REFERRED TO AS RETURN ON CAPTIAL (ROCE)= PROFITS AFTER TAXES/ LONG TERM DEBT + TOTAL STOCKHOLDERS' EQUITY
8. EARNINGS PER SHARE (EPS)= PROFITS AFTER TAXES/ NUMBER OF SHARES OF COMMON STOCK OUTSTANDING
ALL THESE PROFITABILITY RATIOS MUST BE INCLUDED IN SPREADSHEET AND A WRITTEN ANALYSIS OF THE COMPANY'S OVERALL FINANCIAL STATUS
THE COMPANY THIS IS IN REGARDS TO IS:
KEURIG GREEN MOUNTAIN, INC.