Assignment
At this point you have examined three years of financial statements for your firm.
You have also determined their sustainable growth rate as well. You have also learned about various financial ratios.
Use this spreadsheet for the information needed to complete this assignment.
In a comprehensive summary of your firm, provide the following financial information for your firm for the last two years.
• Revenue
• Net Income
• Profitability Ratios
o -Gross Profit Margin
o -Net Profit Margin
o -Return on Assets
• Liquidity Ratios
o -Current Ratio
• Market Ratios
o -Earnings per Share
o -Price to Earnings Ratio
• Debt measures
o -Debt to Asset Ratio
• Explain what each ratio and piece of financial data means and explain the trends in each; are they increasing or decreasing and is this trend positive or negative for the firm and why?
• Using the information from IP4, summarize an explanation of the Sustainable Growth Rate for your firm and what it means for your company (do NOT copy and paste the information from IP4! This is not what the assignment requires)
• Using the financial data, summarize and reflect on the future financial health of your firm.
Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.
Instructions:
The minimum expected amount of effort is 1,000 words (4 to 5 pages).
We've examined each of the various ratios and financial items and discussed how to calculate them. You're provided a spreadsheet with financial information for Apple; explain what each ratio and piece of financial data means and explain the trends that have occurred in the last three years; are they increasing or decreasing and speculate why this might be happening; you are heavily graded in your explanation here.
Provide a detailed summary of the financial health of your firm using these ratios, your proforma statements, and incorporating your findings from IP4; the Sustainable growths rate but DO NOT SIMPLY COPY IP4 HERE!
Keep in mind, a COMPREHENSIVE evaluation of the firm is required! This requires a through explanation of changes in your ratios; what changes occurred and why do you think they changed?
• Be sure to properly reference your work providing intext citations on all data and information that is not common knowledge (you must cite your source of information for this financial data!)
• References and citations must be properly APA formatted!
• Grammar, spelling, and punctuation should be correct and professional.