Conducting Financial Ratio Analysis
Select a publicly traded U.S. company that has paid a dividend for at least the last three years, and conduct a financial ratio analysis. You will be using this company for other assignments in this course; thus, please spend adequate time locating a company. Please consider reviewing http://finance.yahoo.com to locate a company. The company must have data available for you to conduct a financial ratio analysis. It’s important to select a company in an industry that has industry ratio numbers. You cannot select a privately held company.
Calculate all the following ratios for the company for the past three years and compare them to the appropriate industry benchmarks:
Asset Management ratios:
Debt Management ratios:
Market Value ratios:
Create a table that contains the ratios for the various years. Then analyze the information. Look at the trends in the ratios and comment on how they compare to the industry benchmarks. Which ratios are strong? Which ratios need improvement? If you were a stock investor, would you buy the company’s common stock? Why or why not? If you were a bond investor, would you buy the company’s bonds? Why or why not?
You are expected to:
Whenever appropriate, please use Excel to show supporting computations in an appendix, present financial information in tables, and use the data computed to answer follow-up questions. In finance, in addition to being able to write well, it’s important to present information in a professional manner and to analyze financial information. This is part of the assignment expectations and will be considered for grading purposes.
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.