Description
Below I attached the essay that needs to be completed make sure to answer the two questions when looking at the assignment.
1. Calculate the firm’s 2007 financial ratios.
2. Prepare an executive summary on the firm’s overall financial condition and performance. Your
summary must be at least one page, but no more than 3 pages (NOT doubled space). Comment on the meaning of each
ratio, discussing its trend and its comparison to the industry average.
*Include a reference page with at least 2-3 sources. Make sure the sources are cited within text!
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Explanation & Answer
Done, thank you so much.
Running head: RATIO ANALYSIS
1
Financial Ratio Analysis
Name of Student
Name of Professor
Course Title
Date
RATIO ANALYSIS
2
Vanguard Group 2007 financial ratios
RATIO ANALYSIS
3
Vanguard Group executive summary
Ratio analysis has been utilized to determine financial condition and performance of
Vanguard Group organization. This has been attained through creation of a comparison between
items on the balance sheet with the ones on the statement of financial performance. Normally, total
assets on the balance sheet have an impact to items in income statement for example, the revenues
and expenses (Bhat & Rau, 2008).
The financial performance of Vanguard Group is achieved through creating liquidity
position as well as financial risk of the firm. The liquidity risk is computed using both quick and
current ratio value of the firm. As per the financial data, both the current ratio and the quick ratio
are almost constant for the three years. When compared to the industrial averages, both current
and quick ratios are hig...