Problem: Prepare a report including the following information: (Finding a company to analyze)
What is the history of this company? How did it begin? What differentiates this company from its competitors? Compute the following ratios for this company:
Current ratio; inventory turnover ratio; Accounts receivable turnover ratio; Debt to equity; Return on assets; Return on equity; Gross margin on sales
Q1-What do these ratios indicate about the company?
Q2- Who would be interested in each of the ratios listed above? Why?
Q3- How well is this company doing? If possible, find the industry ratios for comparison.
Q4- What other information would be useful for investors and creditors in making economic decisions about this company? Would you invest in this company?