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 approximately 1,000 words (I don't deduct points for going over the word count) why each ratio is important for financial decision making. I'm not looking for a definition of the ratio, instead, how is it used for financial analysis, etc.

Answer rating: 100% (QA)

Industry chosen Retail Company chosen Costco Annual report taken from Company website for FY2015 relevant data are taken from consolidated financial s... View the full answer