Organizational Analysis & Design Plan: Project Description and Scoring Guide

4 pages Research Paper, APA format.

Financial ratio analysis is used for planning, control, and performance evaluation purposes. Extracting the correct and appropriate information from a financial statement is the key to interpreting the information for use in decision-making. This short paper assignment will provide you with a background on financial ratios in a particular industry and ask you to apply the financial ratio analysis to a real-world example.

I would like to pick Coca-Cola Company for this paper.

i. Financial Ratios

a) Name and describe some commonly used financial ratios in your industry.

b) Calculate the return on assets (ROA) and return on equity (ROE) for a company of your choosing within your industry.

ii. Profitability

Assess the profitability of the company based on the financial ratios you calculated and summarize your findings.

iii. Limitations

a) In general terms, discuss the limitations of financial ratios.

b) Specifically, discuss which limitations of financial ratios apply to your industry.