Financial Ratio Analysis, assignment help

User Generated

ne3mbb1986

Business Finance

Description

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 (all ratios listed below) is important for financial decision making.

  • 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

Submit your analysis as well as your calculations. So you are going to submit 2 different files.

1. Word document (minimum 1,050 words, The paper—including tables, graphs, and calculations)

2. Excel file showing all the calculations, tables, graphs

APA: Use headlines in the paper starting with introductions and conclusion.

References: minimum 2 peer reviewed references

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Explanation & Answer

Hey, i have attached your answer, kindly confirm, thanks

Running head: FINACIAL DECISION MAKING – APPLE INC

Financial decision making- Apple Inc
Name
Institution
Date

FINANCIAL DECISION MAKING –APPLE INC

Financial decision making- Apple Inc.
Introduction
Apple Inc. is one of one of the top companies in the technology sector majoring in PCs as
well as consumer electronics. The firm's main activities revolve around designing, making and
marketing media and mobile communication gadgets, digital music players, as well as PCs to
education centers, small enterprises, midsized business, enterprises, consumers, and governments
globally. Additionally, the company sells network solutions and series, accessories, and related
software as well as third-party applications and digital content. Apple Inc., main products line
includes the iPads, the iPhone series, and the Mac computers. The company also provides a
diversified pool of online services which includes iWork, and iLife as well as other applications
software. The company provides cloud services, billing services, and online support services for
its wide pool of clients. To reach its customers, the company relies on the direct sales force,
wholesalers, retailers, resellers, Apple shops and online stores such as iTunes store, iBook store,
App store, and Apple music (Yahoo Finance, 2017).
Financial analysis
Current Ratio

The current ratio is a liquidity ratio that evaluates the financial health of a company. The
ratio determines if the business has the financial strength to meet its short- and long-term debt
obligations. It is expressed as a fraction of current assets and the current debt obligations of a
business. The current ratio is computed as below;

Current ratio =

current assets
Current liabilities

FINANCIAL DECISION MAKING –A...


Anonymous
I was having a hard time with this subject, and this was a great help.

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