FIN 575 Week 4 Financial Ratio Analysis Paper

FIN 575 Week 4 Financial Ratio Analysis Paper

Select one of the organizations listed in Week Three. For this assignment you must use information provided directly by the selected company using either the company's published annual report, or the financial data in the most recent 10-K report that may be downloaded from the SEC's EDGAR website (https://www.sec.gov/edgar/searchedgar/companysearch.html).
Do NOT use third party websites such as Yahoo, Bloomberg, or any other investment advisor site to obtain this data.

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Write a 1,750- to 2,100-word paper discussing the financial condition of the organization based on the following financial ratio calculations. Include your calculation for each of these:
• Profitability ratios
o gross margin
o operating margin
o net margin
o return on assets
o return on equity
• Liquidity ratios
o quick ratio
o current ratio
o working capital
o times interest earned ratio
• Activity ratios
o average collection period
o inventory turnover
o fixed assets turnover
o days in inventory
• Solvency ratios
o debt to equity ratio
o equity ratio
o debt ratio

Summarize and define the key financial ratios for the organization. You will need to calculate these ratios and use them to determine the organization’s financial condition and answer the following questions.
• How much has the company borrowed? Is the debt likely to cause financial distress?
• How liquid is the organization? Is cash readily available?
• How efficiently is the organization using its assets? Are there signs of inefficient use?
• How profitable is the organization?
• Calculate the ROE for the organization you selected and then break down your answer into its component parts using the DuPont method.
• Explain how the DuPont method can help us understand where a company is having financial troubles.
• INCLUDE after your References the income statement and the balance sheet that are used to make the calculations.
Format your...

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