Choosing a specific company (e.g., IBM)and using the Financials option to calculate the following financial indexes in
Question:
Choosing a specific company (e.g., IBM)and using the Financials option to calculate the following financial indexes in five years from 2016 to 2020. Then based on these indexes, analyzing how the company you chose performed economically during these five years. Last, telling me if it is profitable to buy the stock of this company in 2021.
o Leverage: Interest burden; Interest coverage; Leverage; Compound leverage factor;
o Asset utilization: Total asset turnover; Fixed asset turnover; Inventory turnover; Days receivables;
o Liquidity: Current ratio; Quick ratio; Cash ratio;
o Profitability: Return on assets; Return on equity; Return on sales;
o Market price: Market-to-book; Price–earnings ratio; Earnings yield.
Taxation for Decision Makers 2014
ISBN: 9781118654545
6th edition
Authors: Shirley Dennis Escoffier, Karen Fortin