BUSN460 Individual Financial Analysis Project
Go to the CanGo intranet found in the Report Guide tab under Course Home
Use the financial statements from the most recent year to fill in the table below.
You may find some formulae calling for an average, e.g., average inventory, average receivables.
Because we only have the Balance sheet for one year, you can only use the one year number not an average.
Assume interest expense is $0.00
Be careful of the Debt equity ratio. The review covers debt asset ratio as an example of how to calculate ratios and that is different from debt equity ratio,
and that is different from the debt equity ratio so think about how you calculate the debt equity ratio using the debt asset ratio as an example.
Be sure to cite your references
Green boxes to be filled in by instructor
Ratio Formula (express the ratio in words) Detailed calculation (actual numbers from financial statements used for the calculation) Final number (final result of the detailed calculation) Explanation of why ratio is important Earned points (up to 3 points per "box"/cell) Instructor feedback
Example: Term A/Term B (Term A divided by Term B) 1000/2000 .50 This is the explanation of the role of this ratio and why it is important 3
Efficiency Ratio: Receivables Turnover Net Credit Sales/Ending Accounts Receivable (average) 50,000,000/32,120,000 1.56 This ratio is used to evaluate the ability of a company to collect funds in a timely manner and efficiently issue credit to its customers.
Grade for above 0.0
Efficiency Ratio: Inventory Turnover Annual COGS (average)/Inventory (9,000,000)+(4,000,000)/2= (6,500,000)/32,000,000 0.20 The inventory turnover will measure the rate at which inventory is used over a period. You would use the formula to see if a business has an excessive inventory investment in comparison to its sales...