analyzing your companys financial statements, as a descriptive report.

You have been hired as independent financial analysts to evaluate the performance of a 

corporation. Please answer the following questions after analyzing your company’s financial 

statements in no more than 2 pages (including tables), as a descriptive report. See below for 

further instructions. Please use MS Excel with formulas for all your calculations. 

Objective 1: Use last 3 years annual historical data to calculate the following ratios for each of 

the years. (Do not use the ratios already calculated by the Wall Street Journal. Please do your 

own analysis). 

a. Liquidity ratios – Current ratio, quick (acid) ratio, and working capital.

b. Turnover ratios – Inventory turnover and asset turnover ratios.

c. Solvency ratios – Debt ratio, debt to equity ratio, and times interest earned

d. Profitability ratios – Profit margin, return on assets, and return on equity.

e. Investor ratios – P/E ratio, dividends payout ratio, and dividend yield.

f. Also evaluate historical stock price data by calculating means, standard deviation, and 

highest and lowest prices for each of the five years. 

Objective 2: Based on your calculations in Objective 1, use an industry competitor to: 

a) Compare your company’s ratios; and b) analyze your company’s performance:

Here are clues of where you might look for positive or negative performance:

Clue 1. Liquidity and Solvency of the company?

Clue 2. Company’s turnover performance versus profitability?

Clue 3. Impact of clues 1 and 2 on investor ratios?

Your report should NOT be in a question answer format. It should be a descriptive report that 

summarizes your findings for objectives 1 and 2. Please be sure to include an introduction and a 

conclusion of your report. 

Submission Process

1. Your project is due on Canvas.

2. Include a cover page with your names, company name, and course section. 

3. Limit your report to no more than One page of report and one page of yours and 

competitor company ratios. (Total 2 pages)

a. One page report: 4 sections: 

i. Section 1 = Introduction

ii. Section 2 = Response to Objective 2a

iii. Section 3 = Response to Objective 2b

iv. Section 4 = Conclusion

b. One page Excel tables, clearly formatted and professionally presented.

*Resources: www.wsj.com; company websites; and “Lexis Nexis Academic Universe” at

http://www.lias.psu.edu/alallpsu.html.