Assignment: Financial Ratio Analysis
Purpose of Assignment
The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.
Assignment Steps
Select a Fortune 500 Company from one of the following industries:
• Automotive (PLEASE SELECT)
Review the balance sheet and income statement in the company's 2015 Annual Report.
Calculate the following ratios using Microsoft® Excel®:
• Current Ratio
• Quick Ratio
• Debt Equity Ratio
• Inventory Turnover Ratio
• Receivables Turnover Ratio
• Total Assets Turnover Ratio
• Profit Margin (Net Margin) Ratio
• Return on Assets Ratio
Excel Requirements: All income statement and balance sheet values used for ratio data input must be included on separate worksheets labelled "Income Statement" and "Balance Sheet." All ratios must be traceable back to the worksheet tabs for the financial statements to earn credit for the ratios. All worksheets must include clearly labelled account values and the company and source for the financial statements must be clearly disclosed on each Excel worksheet.
Any deviation from these instructions will result in zero credit earned for the ratios.
Analyze in 1,050 words why each ratio is important for financial decision making.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.