Financial Ratio Analysis                                                          Grading Guide

FIN/571 Version 9

Foundations of Corporate Finance

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. 

Click the Assignment Files tab to submit your assignment.

Materials

• Financial Ratio Analysis Grading Guide

Individual Assignment: Financial Ratio Analysis

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.

Resources Required

Microsoft^® Excel^®

 

Content	Met	Partially Met	Not Met	Comments:
Selected a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware
Reviewed the balance sheet and income statement in the company’s 2015 Annual Report.
Calculated 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
Analyzed in 1,050 words why each ratio is important for financial decision making.
		Total Available	Total Earned
		5	#/5

 

 

Writing Guidelines	Met	Partially Met	Not Met	Comments:
The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements.
Intellectual property is recognized with in-text citations and a reference page.
Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed including spelling and punctuation.
		Total Available	Total Earned
		3	#/3

 

 

Assignment Total	#	8	#/8
Additional comments: