XACC 291 Week 9 Final Ratio Analysis Memo | University of Phoenix

XACC 291 Week 9 Final Ratio Analysis Memo | University of Phoenix

XACC 291 Week 9 Final Ratio Analysis Memo  

Select one of the Virtual Organizations as the basis for this assignment.
 
Obtain faculty approval of your selected organization before beginning the assignment.
 
Access the information contained in your selected organization’s balance sheet and income statement to calculate the following:
 
Liquidity ratios
 
Current ratio
Acid-test, or quick, ratio
Receivables turnover
Inventory turnover
 
Profitability ratios
 
Asset turnover
Profit margin
Return on assets
Return on common stockholders’ equity
 
Solvency ratios
 
Debt to total assets
Times interest earned
 
Show your calculations for each ratio.
 
Create a horizontal and vertical analysis for the balance sheet and the income statement.
 
Write a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:
 
What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?
Which users may be interested in each type of ratio?
What does the collected data reveal about the performance and position of the company?
 
Format your memo consistent with APA guidelines

  

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