Assignment 1: Ratio Analysis
Due Week 4 and worth 200 points
Using the Internet and Strayer databases, choose one (1) publically traded firm, and research the financial successes and challenges that the chosen firm has encountered. Select financial statements the firm has released within the past three (3) years, and study them carefully.
Write a three (3) page paper in which you:
- Use data from within the past three (3) years to identify the profit margin, debt to asset ratio, price-earnings (PE) ratio, inventory turnover, current ratio, and times interest earned for the firm that you have selected.
- Analyze significant financial trends of the chosen firm. Examine whether it appears that the firm will achieve financial success throughout the next five (5) years, or whether there appear to be challenges that will hinder the firm’s financial growth. Provide a rationale for your response.
- Imagine that you are the manager of the chosen firm. Summarize the major steps that you would take to either improve the firm or to maintain the firm’s current level of financial success. Explain the main reasons why you believe your approach would be effective.
- Use at least three (3) quality references. Note: Wikipedia and similar Websites do not qualify as academic resources. However, you may use data sources, such as Yahoo Finance.
Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
- Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
- Identify the fundamental components of finance and the importance of each in the financial environment.
- Describe the key financial statements used in a business and how each is analyzed and influences financial decision making.
- Explain the concepts of time value of money, present and future value, and how they influence financial decisions
- Describe the key elements of the securities markets, and how the markets drive financial transactions, decision making, and risk analysis.
- Use technology and information resources to research issues in finance.
- Write clearly and concisely about finance using proper writing mechanics.