Financial Ratio Analysis
Description
Select a firm that has publicly accessible financial data and either competes in an industry that interests you, or that has some affiliation with the State of Arkansas. Perform a financial ratio analysis of the firm. Based on your analysis and a comparison with industry norms, evaluate the firm’s strengths and weaknesses.
N.B. Unless otherwise specifically called for, no analysis may discuss any of the following companies: Apple, Inc., General Electric, Wal-Mart, or Southwest Airlines.
You will have to determine which ratios are relevant to the company that you have chosen. Which ratios does the company report on in their documents (i.e., annual report)? Are there ratios specific to the company or important to the company’s industry?
If you should find a reporting service that has calculated the ratios, you do not need to redo them just copy and paste the results. It is the analysis of the ratios which is most important, not necessarily generating the numbers by your own efforts.
