Calculate traditional financial ratios from the financial statements to help measure corporate performance over the last three
Question:
Calculate traditional financial ratios from the financial statements to help measure corporate performance over the last three years. This should include at least the following: Calculating and interpreting at least 2 profitability ratios (gross margin, profit margin, return on equity, sales growth, EBITDA margin, etc.) Calculating and interpreting at least 2 solvency ratios (debt-to-assets, interest coverage, cash coverage ratio, debt-to-equity, etc.) Calculating and interpreting at least 2 efficiency ratios (inventory turnover, receivables turnover, asset turnover, days in payables, etc.) Calculating and interpreting at least 2 liquidity ratios (current ratio, quick ratio, cash ratio, etc.) One ratio from each category (profitability, solvency, efficiency, liquidity) should be compared to a key competitor or industry average. For example, you could take the profit margin of Pepsi and compare it to the profit margin of its competitor Coke, and comment on the trends. Visualizations of key ratios from each category. You should include the calculations for ratios for your selected company but you are not required or will be marked for ratios from competitors (you can get those online from financial databases such as Morningstar, Yahoo Finance, or Google
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Auditing A Risk Based Approach to Conducting a Quality Audit
ISBN: 978-1305080577
10th edition
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg