Ratio analysis memo
Access the information contained in your selected organization’s balance sheet and income statement to calculate the following:
- Liquidity
ratios
- Current ratio
- Acid-test, or quick, ratio
- Receivables turnover
- Inventory turnover
- Profitability
ratios
- Asset turnover
- Profit margin
- Return on assets
- Return on common stockholders’ equity
- Solvency
ratios
- Debt to total assets
- Times interest earned
Show your calculations for each ratio.
Create a horizontal and vertical analysis for the balance sheet and the income statement.
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Order Paper NowWrite a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:
- What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?
- Which users may be interested in each type of ratio?
- What does the collected data reveal about the performance and position of the company?
Format your memo consistent with APA guidelines.