Assignment
Company Name to be considered: General Motors Company.
The purpose of this comprehensive project is to use resources available to obtain industry averages for commonly used ratios. Additionally, you will compare company ratio results to industry averages.
I. Obtain the four-digit primary SIC (Standard Industrial Classification) Code and industry title for General Motor company. Record the primary SIC code and industry title at the top of the Ratio Analysis Worksheet.
II. Obtain industry averages for commonly used ratios in the current period. Industry average information is reported by industry title or SIC code.
III. Look up the following industry-average ratios:
i. Current ratio
ii. Debt ratio
iii. Gross profit margin
iv. Times interest earned
v. Accounts receivable turnover
vi. Inventory turnover
vii. Return on Sales
viii. Asset Turnover
ix. Return on Assets
x. Financial Leverage
xi. Return on Equity
Note that some industry averages may not apply to your company.
Alternative to Industry Averages:
If you are not able to find the industry average for part 3 of your project, please consider the following:
Unfortunately, some of the websites where you can find industry averages will require you to pay for them. Instead of using industry average, calculate the same ratios for one of the competitors to the General Motor company. That will give you the comparative information you need for Part 3 of the project. I believe this will help.
Write a 3 to 5 pages report comparing the above ratios to industry averages. Discuss whether your company's profitability, efficiency, liquidity, and solvency are better than, or worse than, its peers.
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.