ratio analysis 4796302 2

Required

For the two firms, locate and download their latest annual report. Annual reports are typically found within the ‘Investor Relations’ section of a firm’s website.

Utilizing the data from each of the firm’s annual reports, calculate the following ratios:

• Liquidity Ratios – Current Ratio and Quick Ratio
• Activity Ratios – Inventory Turnover, Receivables Turnover, Days Sales Outstanding, Fixed Asset Turnover, and Total Asset Turnover
• Profitability Ratios – Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return on Assets, and Return on Equity
• Leverage Ratios – Debt/Net Worth and Debt Ratio
• Coverage Ratios – Times-Interest-Earned

You may utilize a Microsoft Excel document to calculate the ratios for each firm.

After calculating the ratios for each of the firms, present the results and provide a brief analysis on the financial health of each firm.

Your assignment should be a minimum of 3 written pages in addition to the ratio calculations and utilize APA formatting. In-text citations and a reference page should also be included.