Management homework help
Efficient and effective use of a company’s assets is an important part of its success. Reviewing financial statements regularly is one way the company can stay on top of its spending. For this assignment, you will analyze current financial ratios for your chosen business. See the attached document for complete instructions and grading rubric.
There are multiple parts to this assignment. Please organize your paper accordingly. I recommend using Headings in APA (7) formatting – incorporate a separate Heading for each Ratio or number each Ratio
1. Identify and number/letter each ratio. Provide a separate paragraph for each ratio or use a table format.
2. Please make sure to explain specifically what each ratio means to the business moving forward. This assignment is looking for you to analyze each ratio for your select business, beyond just supplying definitions.
3. Explain which ratios you feel are most important for the business and support your choice(s)
4. For ratios NOT in Morningstar, you are required to perform Internet research and find them utilizing other resources.
Many times, a comparison of previous years can be helpful in determining what the ratio currently means. Another method of determination is by looking at a competitor’s ratios. For example, a Quick Ratio of 1.0 or higher indicates that a company is fully capable of liquidating its short-term liabilities without financial support. Netflix reported a Quick Ratio of .58 in 2019 and 1.12 in 2020. The analysis of this ratio would indicate that Netflix has done a good job increasing its quick ratio to in order to be able to pay off its current liabilities more rapidly.
Efficient and effective use of a company’s assets is an important part of its success.
Reviewing financial statements regularly is one way the company can stay on top of its
spending. For this assignment, you will analyze current financial ratios for your chosen
business.
Instructions:
• Think of a specific business you find interesting (i.e. Apple, Southwest Airlines,
etc.).
• Research the business’ financial statement.
• Select the Morningstar site offering your company’s financial statement. You will
see a number of financial ratios for your company. Review this example for
Apple.
• Define the following ratios, include the ratio for your business and explain what
each ratio means for the business moving forward.
o Return on assets
o Return on equity
o Return on capital
o Gross margin
o SG&A margin
o Current ratio
o Quick ratio
o Total debt/equity
o Total revenue
o Gross profit
BUS411 – Business Policy Seminar
Unit 4 Assignment: Finance and Operations
• Explain which ratios you feel are most important for the business and why.
• Use these additional resources:
o YCharts. (2019). Apple return on assets.
o Stock Analysis on Net. (2019). Apple Inc. profitability analysis.
Requirements:
• Use APA format with a title page, in-text citations and references. No abstract
required.
• Research and cite at least two credible sources with APA format.