Problem: Operating Assets
Use the company you chose (Fastenal, a company that operates the construction industry), along with a comparable company within the same industry. Ratios should be calculated using the two most recent completed years. Make sure to include a link to the financial statements you are using.
Investors and lenders who read financial statements must determine the age, composition, and productivity of operating assets.
Task
For each company, determine:
(Replicate the five steps in the Ratio Analysis Model to perform the analysis.)
• Formulate the Question
• Gather the Information from the Financial Statements
• Calculate the Ratio
• Compare the Ratio with Other Ratios
• Interpret the Ratios.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.