Webster week 6 Case Study Tasks

Case Study Tasks:

1. Refer to the Case Study topic lecture on the Week 5 Content page. Using the information you obtained last week, complete the Part 3, Ratio Analysis portion of the case study report and submit it along with your regular homework (use a separate file for the financial overview). Note that your Ratio Analysis should include ratios for the years 2011 and 2012 and should include comparisons between the company you are analyzing and the company selected for comparison.

Organize your ratio analysis per the following outline:

(1) Liquidity

- Current ratio

- Quick ratio

Comments on liquidity

(2) Asset management

- Total Asset turnover

- Average collection period (ACP)

Comments on asset management

(3) Debt management

- Debt ratio

- Times interest earned

Comments on debt management

(4) Profitability

- Net profit margin

- Return on Assets (ROA)

- Return on Equity (ROE)

- Extended Du Pont equation

Comments on profitability to include your comments on the sources of ROE

revealed by the Du Pont equation

(5) Market value ratios

- PE ratio

- Market to book ratio

Comments on the market value ratios