Investigate the firm’s financial condition in 2019 (by comparing with 2018) in terms of its Liquidity, Solvency, Turnover, Profitability, and Market Values by analyzing the calculated ratios. How the firm’s performance changed through time? Based on your analysis, comment on the future prospect of the firm from an investor’s viewpoint.

Ratio Analysis Project

The project is an exercise of fundamental analysis of a firm using ratios. You are expected to calculate a number of ratios for a firm and analyze its financial condition.

As the main outcomes of the project, upload 2 files on Canvas: Project Report (word/pdf) and Calculation (excel).

Pick a prominent non-financial public firm from any industry. Calculate the following ratios for your chosen firm for 2018 and 2019 (if data for 2020 is available, use 2019 and 2020 data)

Liquidity Ratios:

Current Ratio
Quick Ratio
Cash Ratio

Solvency Ratios:

Total Debt Ratio
Debt-equity Ratio

Times Interest Earned Ratio Turnover Ratios:

Inventory Turnover
Receivables Turnover
Total Asset Turnover

Profitability Ratios:

Profit Margin
Return on Assets (ROA)
Return on Equity (ROE)

Market values Ratios:

Price-earnings Ratio
Price-sales Ratio
Market-to-book Ratio

Investigate the firm’s financial condition in 2019 (by comparing with 2018) in terms of its Liquidity, Solvency, Turnover, Profitability, and Market Values by analyzing the calculated ratios.

How the firm’s performance changed through time? Based on your analysis, comment on the future prospect of the firm from an investor’s viewpoint.

 

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