Ratio Analysis

User Generated

WnaY

Economics

Description

For the table:

2 income statement

2 balance sheet

last one will be similar as the second picture


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Project #1 (Ratio Analysis) 1. Get the annual balance sheets and income statements for Dow Chemical Company and one other competitive company. You may use each company’s homepage or internet finance related pages, such as www.finance.yahoo.com, to get the data. 2. Construct the ratio table such as Table 4-7 on p.106. (You may exclude the following ratios; Market value added, Market to book ratio, EVA, Payout ratio, and Sustainable growth.) 3. Upload your file to the Canvas with five worksheets of which each worksheet designates the ratio table, balance sheet and income statement of each company, respectively, (do not just list the link) by 2:30 pm on Wednesday, March 21. Preparation of problem sets should be done individually but you are allowed to discuss the related concepts with other students. Any identical copies will be treated as NO Submission. 16 12 10 8 6 4 2 2006 2007 2008 2009 2010 2005 2011 0 2004 2003 2102 2000 2001 2002 Lowe's Home Depot $100,267 $28,534 3.1 6.6 12.1% 17.1% 24.9% $2,627 6.6% 6.7% 9.7% 11.8% $388 4.4% Performance Measures Market value added ($ millions) Market-to-book ratio Profitability Measures Return on assets (ROA) Return on capital (ROC) Return on equity (ROE) EVA ($ millions) - Operating profit margin Efficiency Measures Asset turnover Receivables turnover Average collection period (days) Inventory turnover Days in inventory Leverage Measures Long-term debt ratio Long-term debt-equity ratio 1.83 60 6.1 4.7 77 1.50 276 1.3 4.0 92 35% 53% 57% 12.4 15.1 39% 65% 58% 8.4 12.0 Total debt ratio Times interest earned Cash coverage ratio Liquidity Measures Net working capital to assets Current ratio Quick ratio Cash ratio Growth Measure Payout ratio 0.10 1.34 0.34 0.22 0.06 1.27 0.11 0.09 0.38 0.38
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Explanation & Answer

Attached.





Ratio

Dow chemical company

Monsanto company

Return on assets (ROA)

3.5%

10.89%

Return on capital (ROC)

15.37%

22.3%

Return on...


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