Chat with us, powered by LiveChat Financial Ratio Analysis - Writeden

Prepare a comparison of your firm to 2 other firms being studied in the class, on the following ratios. Also compare your firm to itself for each of the last 3 years (2 additional years beyond your current number).

Profitability Ratios

Gross Margin, Operating Margin, Net Margin

Liquidity Ratios

Current Ratio, Quick Ratio

Working Capital Ratios

Inventory Turnover, a discussion of why A/R turnover & A/P turnover is meaningful in this industry

Interest Coverage Ratios

TIE or EBIT/Interest, EBITDA/Interest. A discussion of why the second formula might be more meaningful.

Leverage Ratios

Debt/Equity, Debt/Capital, Debt to Enterprise Value. Discuss the meanings of each, and which you believe to be the most important and why.

Valuation Ratios

P/E, Price/Book, Enterprise Value to EBIT

Use APA style, and cite your references.