I'm currently using the information for whole foods market.
For the public company you have selected, please conduct a ratio analysis using both a vertical and horizontal analysis. Please use three years' data. You can find data about your company
For the two main financial statements (Balance Sheet and Income Statement), please use the main categories to find the numbers you'll need to calculate these ratios. I'm sure, by now, you know where to find Revenues, Assets, Expenses, Liabilities, etc. on your company's financial statements.
Select 2 ratios in each category (Liquidity, Solvency, Profitability, Activity, Operating) to explore. Calculate the 3 year's of ratios for your public company. Write a short paper analyzing your results. Prepare to present a summary of your findings in class on 3/14.
I've provided examples in each category, below:
Liquidity Ratios:
1. Quick Ratio or Acid Test Ratio)
2. Receivables Ratio
3. Credit Card Receivables Ratio
4. Accounts Receivable Ratio
Long-Term Solvency Ratios
1. Total Assets to Total Liabilities Ratio and/or Total Liabilities to Total Assets Ratio
2. Total Liabilities to Total Equity Ratio (also called Debt to Equity Ratio)
3. Number of Times Interest Earned
Profitability Ratios
1. Gross Return on Assets
2. Net Return on Assets
3. Net Income to Sales Revenue Ratio
4. Return on Owners' Equity
Activity Ratios
1. Inventory Turnover Ratio
2. Inventory Holding Period
3. Working Capital Turnover
4. Fixed Asset Turnover
Operating Ratios:
1. Food and/or Beverage Cost Percentage
2. Labor Cost Percentage