Discussion: Liquidity and Efficiency for Nike and SEARS Holding Corp.
1. Calculate Liquidity and Efficiency ratios - Using your companies' financial statements, calculate the following ratios related to liquidity and efficiency for the past 3 years. Show the formulas used and the specific numbers used to calculate your ratios. Present this information in a user friendly format - again using a spreadsheet to put the information in a table is a good approach.
a. Current Ratio
b. Acid test ratio
c. Inventory turnover
d. Day Sales Outstanding
Analyze results - Use your ratio results to evaluate what each ratio is telling you about the companies' trends in liquidity and efficiency.
Compare to peer group - Discuss how your companies' liquidity and efficiency compare to the average for your companies' peer group.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.