ctu finc400 Phase 1 Individual Project

Phase 1 Individual Project

Deliverable Length: Word document of 500-800 words with attached Excel spreadsheet showing calculations

Details:

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday, and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Library Research Assignment

Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2012 and 2013:

Liquidity Ratios

Current ratio [current assets / current liabilities]

Quick ratio [(current assets – inventory) / current liabilities]

Asset Turnover Ratios

Collection period [accounts receivable / average daily sales]

Inventory turnover [cost of goods sold / ending inventory]

Fixed asset turnover [sales / net fixed assets]

Financial Leverage Ratios

Debt-to-asset ratio [total liabilities / total assets]

Debt-to-equity ratio [total liabilities / total stockholders’ equity]

Times-interest-earned (TIE) ratio [EBIT / interest]

Profitability Ratios

Net profit margin [net income / sales]

Return on assets (ROA) [net income / total assets]

Return on equity (ROE) [net income / total stockholders’ equity]

Market-Based Ratios

Price-to-earnings (P/E) ratio [stock price / earnings per share]

Price-to-book (P/B) ratio [market value of common stock / total stockholders’ equity]

You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2012 to 2013, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.

If a ratio decreased from 2012 to 2013, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.

If a ratio was unchanged from 2012 to 2013, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.