Economics
Select a topic: Economics
Title: analysis paper 2
Assignment Instructions: Assignment part one
Using Excel, create a template which provides information about various financial ratios.
In your template, please include at least two (2) ratios within each type/category of ratios.
Include the following information in your template:
The name of the ratio
How it is calculated
What this ratio measures (what information is this ratio providing)
Once your Excel file is complete, upload it using the link provided in this assignment.
Part 2 of the Analysis Paper:
In Modules 1 and 2, we are focusing on the analysis of company financial statements to analyze company performance. In Part One of the Financial Statement Analysis assignment, you obtained a company\’s financial statements and performed horizontal (trend) and vertical (common-size) analysis.
Part Two of the financial statement analysis looks at the company in terms of financial ratios. You will look at four categories of ratios: liquidity, efficiency, solvency, and profitability. (Note: some of these category titles may be titled slightly different in the various readings).
Please follow the instructions below.
Look at the ratio Excel sheet you downloaded from the Mergent database.
Select at least two ratios from each category. These are the ratios you will use for your ratio template assignment.
Now that you have an understanding of these ratios, analyze the performance of your company based on these ratios over the past five years.
Next, you want to compare your company’s performance to its industry. Click the file link below to review instructions to obtain industry data from the Mergent Database: How to Obtain Industry Data.docxOpen this document with ReadSpeaker docReader Download How to Obtain Industry Data.docxOpen this document with ReadSpeaker docReader
To write part two of your analysis, you will perform a trend analysis – How did your company perform overtime in terms of each ratio?
In addition, you will analyze how your company performed in relation to its industry. Your company might show that it is continually improving in one area, but it is lagging behind when compared to its industry.
The final piece of your analysis is the conclusion in which you will make recommendations on the following:
Would you consider this company a good company to investment in and WHY?
Would you consider this company a good company to lend money to and WHY?
In other words, if you were an investor, would you invest your money in this company? Also, if you were a creditor, would you lend money to this company?
In detailing your response, be sure you are pulling data from your analysis, both financial statement and ratio, to support both of your conclusions.
Your Mergent Ratio Excel Sheet should also be included as an attachment to your analysis.
Paper Format: APA
Answer preview to Economics
APA
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