There are various categories of financial ratios discussed in this course. Discuss each category Profitability, Solvency, Efficiencies, and Liquidity ratios. For each category pick 2 ratios to calculate based on the information on the financial statements contained in the annual report.
– You must show your work on ratio calculation and result.
– Show formula for the ratio (2 Ratio per category)
– Show work for formula, numbers that goes into the formula to create each ratio.
– Discuss the ratio results and its meaning if it meets the industry turnout.
The student may integrate information in the report that explains ratio analysis and outcome. For example, if the current ratio is 2:1, it means that they are very well funded to cover any liability should they decide to close the operation. They have enough cash to meet all current liabilities and some future expenses