Financial Ratios
Choose three financial ratios to calculate from the following: Current Ratio, Quick Ratio, Inventory Turnover, Days Sales Outstanding, Fixed Asset Turnover, Total Asset Turnover, Times Interest Earned, Operating Margin, Profit Margin, Return on Assets, and/or Return on Equity. You can calculate any three from this list that you want. But you must use formulas from my Powerpoint to get credit. If you can’t find the numbers you need, use another ratio. Use each ratio you select to answer the questions below.
- Financial Ratio #1:
- Financial Ratio #2:
- Financial Ratio #3:
Financial Ratio #1 (from the list above):
Calculate financial ratio #1. You must show the formula, numbers and calculation in order to get credit. See Hints document for an example. Also, you must use Yahoo Finance for the numbers.
Include a picture of the source for your numbers included in your calculations. Picture no links.
Use the numbers calculated above to explain what the calculated ratio means.
Calculate financial ratio #1 again but for the firm’s competitor. You must show the formula, numbers and calculation in order to get credit. Also, you must use Yahoo Finance for the numbers.
Include a picture of the source of your numbers included in your calculations.
Compare the firm’s ratio to the competitor’s ratio. Explain which is stronger or weaker.