Corporate Finance

Instructions

Ratio Analysis

This is your opportunity to play detective and do some financial statement analysis. Please select any publicly traded company. The CSU Online Library has several databases to choose from that are good starting points for your research:

  • Mergent Online,
  • Business Insights: Global,
  • Business Source Ultimate, and
  • ABI/INFORM Collection.

In addition to using at least one database article or report from any reliable website, such as the company’s web page.

For the company you select, find the annual report and the financial ratio information for the following ratios:

  • debt-to-equity,
  • current ratio,
  • return on equity,
  • quick ratio,
  • working capital ratio,
  • price earnings ratio, and
  • earnings per share.

Once you have reviewed the information, write an essay that begins with a brief introduction to your chosen company. Next, explain how the company is doing with respect to the ratios. In one to three sentences, briefly summarize what each of the ratios are telling you about the company. Conclude with how you predict it will do in the future.

Your essay should be at least one page in length. Use APA format to cite and reference all quoted and paraphrased material, including your textbook. Use a minimum of two sources, one of which may be the textbook. Include a title page, introduction, body, conclusion, and references page. An abstract is not required.