Analyze current financial ratios for a given business.
Assignment: Finance and Operations
This week we look at finance and operations, and apply a bit of quantitative analysis to the effort.
Your assignment is to analyze current financial ratios for a given business.
1. Think of a specific business you find interesting, i.e. Apple, UTC, Southwest Airlines, etc.
2. Search the web for that business’ “Financial Statement.” (You will find many hits for the data.)
3. Select the http://www.morningstar.com/ site offering your company’s financial statement.
4. You will now see a number of financial ratios for your company. Below is an example for Apple: http://financials.morningstar.com/ratios/r.html?t=AAPL
5. Now, define the following ratios, note the ratio for your business, and explain what the ratio means for the business moving forward:
a) Return on Assets
b) Return on Equity
c) Return on Capital
d) Gross Margin
e) SG&A Margin
f) Current Ratio
g) Quick Ratio
h) Total Debt/Equity
i) Total Revenue
j) Gross Profit
Here are some additional resources:
Apple (Return on Assets): https://ycharts.com/companies/AAPL/return_on_assets
Ratios: https://www.stock-analysis-on.net/NASDAQ/Company/Apple-Inc/Ratios/Profitability/Quarterly-Data#Ratios-Summary
Answer preview to analyze current financial ratios for a given business.
APA
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