Why ratio is important for financial decision making


Assignment:

Purpose:

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:

Pharmaceutical

Energy

Retail

Automotive

Computer Hardware

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

Analyze in 1,050 words why each ratio is important for financial decision making.

Submit your analysis as well as your calculations.

Solution Preview :

Prepared by a verified Expert
Financial Accounting: Why ratio is important for financial decision making
Reference No:- TGS02091946

Now Priced at $40 (50% Discount)

Recommended (94%)

Rated (4.6/5)