Financial ratios are the principal tool of financial analysis. Ratios standardize the financial information of firms so comparisons can be made between firms of varying sizes. Choose two firms in the same sector; locate their current financial information both in terms of current financial statements and stock market prices. With the information, do a paper of 8-10 pages, with the following headings:
How liquid are the firms
Are the firm's managers generating adequate operating profits on the company's assets
How are the firms financing their assets?
Are the firm's managers providing a good return on the capital provided by the shareholders
Are the firms' managers creating shareholder value
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title page: Remember the running head and title in all capital letters.
Abstract: This is a summary of your paper, not an introduction. Begin writing in third-person voice.
Body: The body of your paper begins on the page following the title page and abstract page, and it must be double-spaced between paragraphs. The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA level headings and references. In-text academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference page: References that align with your in-text academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper- and lower-case usage as appropriate for the type of resource used. Remember, the reference page is not a bibliography, but it is a further listing of the abbreviated in-text citations used in the paper. Every referenced item must have a corresponding in-text citation.