Company Ratio Analysis (easily the section that takes the most time to prepare) (75 points)
A. Compute ratios for 2 years for your company, most recent year for the competitor and use book from the library for industry (1 year), Yahoo comparisons, or the instructor.
B. You can use Yahoo! Finance or Reuters to get/calculate the ratios but need to interpret and explain them.
C. The ratios calculated and analyzed should be those presented on page 627 of the text.
D. Some companies, depending on the industry, may not have significant receivables or inventory. For these ratios which involve inventory and/or accounts receivable are not required. If in doubt, please pass this by the instructor before preparing Section 5.
E. Each ratio should have a paragraph for the meaning of the ratio (what it tells us), and a paragraph for your analysis, which includes how the company is performing over the two years presented, also compared to the competitor, and industry averages.
F. Students typically have a chart showing all the calculations.