# Ratio Analysis

*label*Accounting

*timer*Asked: May 29th, 2014

**Question description**

1,750–2,000 words (not including title and reference pages) APA

**Find amanufacturing company's annual report. **

Calculate the following ratios for the company that you select:

Return on assets

Return on equity

Gross profit margin

Debt to equity ratio

Debt ratio

Current ratio

Quick ratio

Inventory turnover

Total asset turnover

Price earnings ratio

Using the calculated ratios, analyze the financial performance of

the firm. You will do this by looking at the ratios and comparing them to

ratios from previous periods and in some cases, against their competitors. Keep

in mind that you are trying to determine how the firm is performing under each

of the listed ratios. In a memo to the chief executive officer (CEO), include

the following:

You are to calculate the ratios

for the company and analyze those ratios.

**Find amanufacturing company's annual report. **

MUST BE IN THIS Format:

I.

Part 1 –

Give an overview of what is going to be discussed in the memo

II.

Part II – Heading – Ratio Analysis Explanation –

Explain the proper way to use ratio analysis and the users of ratio analysis

III.

Part III – Heading - Ratio Calculation – List

the ratio, the formula, the amount

calculated.

IV.

Part IV –

Heading - Evaluation of the Ratios –

Evaluate the ratios, find a similar company similar to compare your calculated ratios, discuss

what the company is doing well and how the company can improve

V.

Part V – Heading – Other Financial Analysis –

Discuss other ways to analyze Financial statement s other than ratios and with

other ratios not listed.

VI.

Part VI – Heading – Recommendations for

Improvements

VII.

References