This assignment is the third part of the course project. In this assignment, you will utilize the two stocks within the same industry that were selected in Module 03.
Required
For the two firms, locate and download their latest annual report. Annual reports are typically found within the ‘Investor Relations’ section of a firm’s website.
Utilizing the data from each of the firm’s annual reports, calculate the following ratios:
Liquidity Ratios – Current Ratio and Quick Ratio
Activity Ratios – Inventory Turnover, Receivables Turnover, Days Sales Outstanding, Fixed Asset Turnover, and Total Asset Turnover
Profitability Ratios – Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return on Assets, and Return on Equity
Leverage Ratios – Debt/Net Worth and Debt Ratio
Coverage Ratios – Times-Interest-Earned
You may utilize a Microsoft Excel document to calculate the ratios for each firm.
After calculating the ratios for each of the firms, present the results and provide a brief analysis on the financial health of each firm.
Your assignment should be a minimum of 3 written pages in addition to the ratio calculations and utilize APA formatting. In-text citations and a reference page should also be included.
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