1)Go to MSN Money.
(http://investing.money.msn.com/investments/key-ratios) and type in a
ticker symbol for a company with the first letter of your last name. USE LETTER T
Next, complete the following:
a. Select “Key Ratios” on the left menu panel.
b. There are several categories listed for ratios. Select one “Financial
Condition Ratio” and one “Management Efficiency Ratio”.
c. Open the Profile section on the left menu panel and you will see
“Industry” is identified. Find a competitive company within that
industry and compare those ratios to the ones you just found.
Examine your findings and determine whether your company outperforms
its competition based on financial ratios. Identify where your firm
seems to lag. Describe how your firm compares with the industry and
speculate as to why you believe your firm is performing as it is.
As your text describes, ratio analysis is
a common technique in financial analysis. One of your colleagues
states that a thorough ratio analysis is all that is needed in
considering the financial health of a company. Although you agree that
ratio analysis is a helpful guide, there may be some potential pitfalls
in ratio analysis.
Discuss at least three potential issues
in utilizing ratio analysis that you would share with your colleague. In
addition, calculate a liquidity, profitability, and efficiency ratio
from your Week Six company to demonstrate your observations.
Develop a 200 – 300 word explanation supporting your findings.