Purpose of Assignment
The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.
Select a Fortune 500 Company from one of the following industries:
- 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
To receive credit for this portion, you must SUBMIT YOUR EXCEL FILE TO ASSIGNMENTS, SHOWING YOUR FORUMULA/CALCULATIONS FOR THESE RATIOS
In the same excel file with your ratios, on the same sheet, below your calculation for each ratio, in approximately 100 words for each ratio, develop why this ratio is important for financial decision making. In your discussion, develop how to interpret the ratio, and what the ratio results for your company tell you about the financial position of this company.
Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan B. D., (2016). Corporate Finance (11th ed.). New York, NY: McGraw Hill Education.