Unit 1 - Individual Project

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Assignment Overview

This assignment is the Common Assignment

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Assignment Overview

Type:

Individual Project FINC400

Unit:

Financial Statements and Analysis

Due Date:

Mon, 8/22/16

Grading Type:

Numeric

Points Possible:

100

Points Earned:

0

Deliverable Length:

Word document of 500-800 words with attached Excel spreadsheet showing calculations

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Assignment Details Assignment Description

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday, and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Library Research Assignment

Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2014 and 2015:

• Liquidity Ratios
  • Current ratio [current assets / current liabilities]
  • Quick ratio [(current assets inventory) / current liabilities]
• Asset Turnover Ratios
  • Collection period [accounts receivable / average daily sales]
  • Inventory turnover [cost of goods sold / ending inventory]
  • Fixed asset turnover [sales / net fixed assets]
• Financial Leverage Ratios
  • Debt-to-asset ratio [total liabilities / total assets]
  • Debt-to-equity ratio [total liabilities / total stockholders equity]
  • Times-interest-earned (TIE) ratio [EBIT / interest]
• Profitability Ratios
  • Net profit margin [net income / sales]
  • Return on assets (ROA) [net income / total assets]
  • Return on equity (ROE) [net income / total stockholders equity]
• Market-Based Ratios
  • Price-to-earnings (P/E) ratio [stock price / earnings per share]
  • Price-to-book (P/B) ratio [market value of common stock / total stockholders equity]

You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2014 to 2015, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.

If a ratio decreased from 2014 to 2015, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.

If a ratio was unchanged from 2014 to 2015, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.