Course: Financial Ratios and Ratio Essay Example

All 18 ratios for each company along with their supporting calculations and commentary on the worksheet ratio tab. Supporting calculations should be displayed as formulas or text in separate cells. The ratios are listed later in this document, and comments on each ratio should go beyond simple definitions.

When analyzing the ratios for each company, it is important to interpret and back up your comments with the numbers discovered in the ratios. The Summary and Conclusions worksheet tab provides a comprehensive comparison of how each company fares in terms of major ratio categories such as Liquidity, Profitability, and Solvency. To conclude, it is advisable to mention which company you believe is a better investment and explain the reasons behind your choice. The Bibliography worksheet tab should include references such as the textbook and any other sources used to gather information about the companies.

The final project submission requires the following ratios:

1. Earnings per Share
2. Current Ratio
3. Gross Profit Rate
4. Profit Margin Ratio
5. Inventory Turnover Ratio
6. Days in Inventory
7. Receivables Turnover Ratio
8. Average Collection Period
9. Asset Turnover Ratio
10. Return on Assets Ratio

< li > Debt to Total Assets Ratio
< li > Times Interest Earned Ratio
< li > Payout ratio
< li > Return on Common Stockholders' Equity Ratio

< Li > Free Cash Flow

< Li > Current Cash Debt Coverage Rationel

11. Cash Debt CoverageRatio8) Price/EarningsRatio [For the purpose of this ratio, for Oracle, use the market price per share on May 30,2011 and for Microsoft, use the market price per share on June 30,2011]

The uploaded Excel files should only include relevant information and numbers.

Please ensure that previous years' ratios or ratios not specifically requested for in the project are excluded. The final submission should be uploaded to Week 7 Dropbox by Sunday ending Week 7.

To draft the project, either create an Excel spreadsheet or use the Project template provided to compute the first twelve ratios mentioned above.

The more progress you make with the other requirements, the closer you will be to finishing by Week 7. Display calculations either as a formula or typed text in a separate cell. If you choose to create your own spreadsheet, use the same format as the Tootsie Roll and Hershey template file. Submit your draft to the Week 5 Dropbox by the end of Sunday in Week 5. Additional tip: If you are not familiar with Excel, look up helpful resources through a Google search.

The Appendix to Chapter 13 contains ratio calculations and comparison comments related to Kellogg and General Mills, providing helpful information. BigCharts.com offers historical stock quotes. You can use either APA or MLA style for the references on your Bibliography tab. A tutorial for APA and MLA style is available in the syllabus. The instructor will grade the entire project at the end of the final submission in week 7, assigning one grade for the whole project. The project will account for 18% of your overall course grade.

Category| Points| %| Description| Documentation ; Formatting| 9| 5%| The report will be submitted in the form of an Excel Workbook, with each page (worksheet) of the workbook named appropriately. Please do not use any other software (such as MS Works or Lotus) to complete the project. A quality report

will include a title worksheet tab, a worksheet tab for the profile of the two companies, a worksheet tab for the ratio calculations and comments, a worksheet tab for the Summary and Conclusion, proper citations if applicable, and a bibliography worksheet tab for the references.

Organization ; Cohesiveness| 9| 5%| A quality report will include the content described above in the documentation and formatting section. The ratios should be listed in the same order in which they appear in the project information above.

Editing| 18| 10%| A quality report will be free of any spelling, punctuation, or grammatical errors. Sentences and paragraphs will be clear, concise, and factually correct. Ratios will be expressed as numbers or percentages, depending on what is appropriate, as is shown in the textbook.

Note that not all ratios are shown as percentages. Two decimal places is sufficient for each of the ratios.

Content: 144, 80%

A quality report will have correct ratio calculations and accurate supporting commentary. Any assumptions, if made, should be spelled out clearly. Supporting calculations must be shown either as a formula or as text typed into a different cell.

Total: 180, 100%

A quality report will meet or exceed all of the above requirements.

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