Financial Ratio Analysis

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Purpose of Assignment

The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.

Assignment Steps

Select a Fortune 500 Company from one of the following industries:

  • Pharmaceutical
  • Energy
  • Retail
  • Automotive
  • Computer Hardware

Review the balance sheet and income statement in the company's 2015 Annual Report.

Calculate the following ratios using Microsoft® Excel®:

  • Current Ratio
  • Quick Ratio
  • Debt Equity Ratio
  • Inventory Turnover Ratio
  • Receivables Turnover Ratio
  • Total Assets Turnover Ratio
  • Profit Margin (Net Margin) Ratio
  • Return on Assets Ratio

Analyze in 1,050 words why each ratio is important for financial decision making.

Submit your analysis as well as your calculations.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running head: FINANCIAL RATIO ANALYSIS

Financial Ratio Analysis

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FINANCIAL RATIO ANALYSIS

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Introduction
Today’s organizations are seeking new approaches and techniques to effect consistent
operational efficiencies. A sustainable business requires effective planning and financial
management. Among the techniques used by an organization to advance the financial management
operations is the ratio analysis. This is an essential management tool provides a comprehensive
understanding of financial results and trends over time (Valickova, 2015). The tool analyses key
performance indicators of an organization. Moreover, financial ratio analysis is a critical measure
that is used understand the financial statements. Various stakeholders such as creditors, investors
and suppliers can use the analysis to make viable decisions partnership decisions. This text
analyses the financial ratio analysis of Apple Inc. of 2015 financial statement. It also discusses the
importance of various ratios to the performance of the company. An excel document with financial
ratio calculations has been attached.
Apple Inc.
Apple Inc. is a 500 fortune founded in 1976 and headquartered in California. This company
designs, manufactures and market personal computers, mobile communication and media services,
and the portable digital music players. Moreover, it markets and sells a variety of computer-related
software, accessories, services, networking solutions and third-party digital applications and
contents (Hennessy, 2017). The company sells its products through online stores, retail stores and
direct sales force and as well as the third-party cellular network carriers. Apple Inc. is committed
to building a legendary user experience to its customers through its quality innovative software,
hardware, and services.

FINANCIAL...


Anonymous
Really useful study material!

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