QU 1
Go to.money.msn.com/investments/key-ratios”>MSN Money. (.money.msn.com/investments/key-ratios”>http://investing.money.msn.com/investments/key-ratios)
and type in a ticker symbol for a company with the first letter of your
last name.
Next, complete the following:
1.
Select “Key Ratios” on the
left menu panel.
2.
There are several categories
listed for ratios. Select one “Financial Condition Ratio” and one “Management
Efficiency Ratio”.
3.
Open the Profile section on
the left menu panel and you will see “Industry” is identified. Find a
competitive company within that industry and compare those ratios to the ones
you just found.
Examine your findings and
determine whether your company outperforms its competition based on financial
ratios. Identify where your firm seems to lag. Describe how your firm
compares with the industry and speculate as to why you believe your firm is
performing as it is.
Guided Response: Review the
financial ratios provided by your classmates. Do any seem unusual? Respond to
by sharing any reasons you can provide to explain the variance in the
ratios. Support your reasons with evidence.
QU 2
As your text describes, ratio
analysis is a common technique in financial analysis. One of your
colleague states that a thorough ratio analysis is all that is needed in
considering the financial health of a company. Although you agree that ratio
analysis is a helpful guide, there may be some potential pitfalls in ratio
analysis.
Discuss at least three
potential issues in utilizing ratio analysis that you would share with your
colleague. In addition, calculate a liquidity, profitability, and efficiency
ratio from your Week Six company to demonstrate your observations.
Develop a 200 – 300 words
explanation supporting your findings.
ScholarMatic: Explanation & Answer
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