Assignment 2: Discussion-Applied Ratio Analysis

Access an overview of your course project.

By the due date assigned, respond to the following in the Discussion Area below:

This module you are using financial analysis tools to evaluate the financial health of companies. One tool you are learning about is financial ratios and you can use this summary of financial ratios as a guide. You will be combining your findings from this discussion response into your final course project paper in Module 5.

There are three categories of financial ratios: liquidity, solvency, and profitability.

• Describe what each category tells the user about the financial health of a company.

• Choose three ratios in each category and describe what the ratios tell the user about the company. How are financial ratios used to evaluate a company?

• Discuss what the numbers would be compared against for analysis.

• Calculate each ratio for your companies. What do the ratios tell you about each of your companies?

Be sure to cite any sources using APA style. You may use this APA Citation Helper as a guide.

Through the end of the module, provide substantive responses to at least two other students' initial posts, as well as any posts to you by your instructor. Be sure to post to the Discussion Area on two different days to meet your weekly attendance requirement.