Create a new excel worksheet in the same excel workbook and name it Financial Ratios. Copy the financial statements from your second worksheet (named Financial Statements) and paste on the left side of your fourth worksheet (Financial Ratios). This will be the basis of your ratio calculations.

For this step, you will calculate the following ratios for each of the five years:

Liquidity ratios: Current ratio, Quick ratio

Leverage ratios: D/E ratio, TIE ratio

Profitability ratios: Profit margin, ROA, ROE

Asset management ratios:

Turnover ratios: Total asset turnover, Inventory turnover, Receivables turnover

Days sales ratios: Days sales in inventory, Days sales in receivables

Market value ratios: Earnings per share (EPS), Price-to-earnings (P/E)

Financial ratios help us:

Focus on different aspects of the firm.

Understand how well or poorly the firm is doing in these aspects.

Track how the firms performance changing over time.

After calculating the financial ratios of your company, write a one paragraph discussion for each of the ratio groups.