For the Draft:
Earnings per Share of Common Stock
Current Ratio
Gross Profit Rate
Profit Margin
Inventory Turnover
Days in Inventory
Accounts Receivable Turnover
Average Collection Period
Asset Turnover
Return on Assets (ROA)
Debt to assets Ratio
Times Interest Earned Ratio
Dividend Yield [For the purposes of this ratio, use Yahoo Finance to look up current dividend per share and stock price; be sure to use the balance sheet date, or last business day prior to the balance sheet date. .]
Return on Common Stockholders' Equity (ROE)
Free cash flow
Price-Earnings Ratio [For the purpose of this ratio, look up the market price per share as of the balance sheet date, or last business day prior to the balance sheet date for each company.]
Create an Excel spreadsheet or use the project template to show your computations for the first 10 ratios listed above. The more you can complete regarding the other requirements, the closer you will be to completion when Week 8 arrives. Supporting calculations must be shown either as a formula or as text typed into a different cell. If you plan on creating your own spreadsheet, please follow the format provided in the Nike and Under Armour template file.
Please upload your draft submission to the Week 6 Assignments page by the Sunday at the end of Week 6.
Other Helpful Information:
If you feel uncomfortable with Excel, you can find many helpful tutorials on Excel by performing a Google search.
Chapter 13 contains ratio calculations and comparison comments for two fictitious companies Chicago Cereal and Giant Mills so you will likely find this information helpful.
APA style must be used to complete the references on your Bibliography tab. The Library contains information on APA formatting.
For the Final Submission:
1) Provide a cover sheet with your name, your course, the date, my name as your Instructor and the Title, Signature Assignment Course Project.
2) For the Worksheet Profiles Tab prepare a one paragraph description regarding your company and its history, product lines or services and any other relevant information.
3) Compute all 16 ratios for your company with supporting calculations for the fiscal or calendar year ending in 2020 for the Worksheet Ratio Tab. You may review the "template" but please make certain that the font is large enough for me to view especially with regard to the numerical amounts. You could also include this information in a Word Document, but remember the font must be large enough for me to read (especially the NUMBERS).
4) Provide 2 statements for each ratio. FIRST A GENERIC DESCRIPTION OF WHAT THE RATIO MEANS. SECOND WHETHER OR NOT A HIGHER OR LOWER RATIO IS PREFERABLE (or what it depends on).
5) You may disregard the Summary and Conclusions Tab.
6) The Bibliography Worksheet Tab should include any resources used in your investigation.
Required Ratios for Final Project Submission
Note: The Excel files uploaded as the assignment submission should not include any unnecessary numbers or information (such as previous years' ratios, ratios that were not specifically asked for in the project, etc.)
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