Students will select a manufacturing or service firm listed on the New York Stock Exchange or NASDAQ
Question:
Students will select a manufacturing or service firm listed on the New York Stock Exchange or NASDAQ approved by the instructor. Financial institutions and financial service firms are not to be used. You will use the following ratios: Current Ratio, Quick Ratio, Accounts Receivable Turnover Ratio, Inventory Turnover Ratio, Fixed Asset Turnover Ratio, DebtEquity Ratio, Return on Assets (ROA), and Return on Equity (ROE). You can get the financial statements necessary to prepare the ratios from the company’s website or on Yahoo Finance. It must be SIZE 12 FONT, DOUBLE SPACED, AND NO MORE THAN 5 PAGES. For each ratio, the student will calculate it for the two most available years showing the numbers, i.e. Current Assets 2018 $1,000,000 2017 $900,000 and Current Liabilities 2018 $850,000 2017 $800,000, from the company’s financial statement and showing the ratio calculation and result. The student will also obtain the industry average (just for the most current available year). If you can’t find an industry average then use the company’s primary competitor, i.e. for Coca Cola you would use Pepsi. After completing the ratio calculations write your analysis of what information the ratio gives you, and how it compares over time (a normal timeline would be five (5) years, but for this effort assume two (2) years as the timeline, and how it compares to the industrycompetitor.
See the attached excel sheet for how to do it.
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver