Word document of 500-800 words with attached Excel spreadsheet showing calculations.

APA Format on the word document

Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2012 and 2013:

- Liquidity Ratios
- Current ratio [current assets / current liabilities]
- Quick ratio [(current assets – inventory) / current liabilities]

- Asset Turnover Ratios
- Collection period [accounts receivable / average daily sales]
- Inventory turnover [cost of goods sold / ending inventory]
- Fixed asset turnover [sales / net fixed assets]

- Financial Leverage Ratios
- Debt-to-asset ratio [total liabilities / total assets]
- Debt-to-equity ratio [total liabilities / total stockholders’ equity]
- Times-interest-earned (TIE) ratio [EBIT / interest]

- Profitability Ratios
- Net profit margin [net income / sales]
- Return on assets (ROA) [net income / total assets]
- Return on equity (ROE) [net income / total stockholders’ equity]

- Market-Based Ratios
- Price-to-earnings (P/E) ratio [stock price / earnings per share]
- Price-to-book (P/B) ratio [market value of common stock / total stockholders’ equity]

You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2012 to 2013, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.

If a ratio decreased from 2012 to 2013, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.

If a ratio was unchanged from 2012 to 2013, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.

**Place a similar order with us or any form of academic custom essays related subject and it will be delivered within its deadline. All assignments are written from scratch based on the instructions which you will provide to ensure it is original and not plagiarized. Kindly use the calculator below to get your order cost; Do not hesitate to contact our support staff if you need any clarifications. **

**Whatever level of paper you need – college, university, research paper, term paper or just a high school paper, you can safely place an order.**

### Page Navigation