Assignment: Finance and Operations: This week we look at finance and operations, and apply a bit of quantitative analysis to the effort. Your assignment this week is to analyze current financial ratios for a given business.
1. Think of a specific business you find interesting, i.e. Apple, UTC, Southwest Airlines, etc.
2. Search the web for that business’ “Financial Statement”. (You will find many hits for the data.)
3. Select the “Bloomberg” site offering your company’s financial statement.
4. Once at the site you will find a box highlighted in blue termed “Ratios”. Click on that box.
5. You will now see a number of financial ratios for your company. Below is an example for Apple.
6. Now, define the following ratios, note the ratio for your business, and explain what the ratio means for the business moving forward:
a) Return on Assets
b) Return on Equity
c) Return on Capital
d) Gross Margin
e) SG&A Margin
f) Current Ratio
g) Quick Ratio
h) Total Debt/Equity
i) Total Revenue
j) Gross Profit
Please note that this assignment requires more than just a definition of each ratio. You are to analyze what the ratio means for the specific business you selected.