Financial Ratio Discussion
Course textbook Using Financial Accounting, and Chapters 3 and 7 from the Warren Buffett Accounting Book: Reading Financial Statements for Value Investing. Select a company of interest that trades on the New York Stock Exchange (NYSE). The annual report can be found on your selected company’s website, usually under the heading “Investor Relations.” Select a company that a fellow student has not already posted. You can also access Mergent OnlineLinks to an external site. and search for a company and access their financial reports, such as Annual Reports: Mergent Online tip sheetLinks to an external site. Retrieve the latest two annual reports, then complete the following:
Calculate the current ratio and profit margin ratio for the latest two years and interpret the results. Please be sure to show your calculations. Then, explain what the ratios you calculated over the latest 2 years tell you.
Locate the Management Discussion and Analysis comments in the latest annual report and discuss the main points in your own words.
Locate the Auditor’s Report in the latest annual report, and discuss the opinion given and who conducted the audit.
Based on this initial quick review, provide your assessment of your chosen company.
Discussion – Financial Statement Analysis
Course textbook Using Financial Accounting, and Chapters 3 and 7 from the Warren Buffett Accounting Book: Reading Financial Statements for Value Investing. Select a company of interest that trades on the New York Stock Exchange (NYSE). The annual report can be found on your selected company’s website, usually under the heading “Investor Relations.” Select a company that a fellow student has not already posted. You can also access Mergent OnlineLinks to an external site. and search for a company and access their financial reports, such as Annual Reports: Mergent Online tip sheetLinks to an external site. Retrieve the latest two annual reports, then complete the following:
Calculate the current ratio and profit margin ratio for the latest two years and interpret the results. Please be sure to show your calculations. Then, explain what the ratios you calculated over the latest 2 years tell you.
Locate the Management Discussion and Analysis comments in the latest annual report and discuss the main points in your own words.
Locate the Auditor’s Report in the latest annual report, and discuss the opinion given and who conducted the audit.
Based on this initial quick review, provide your assessment of your chosen company. Use APA referencing style.
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Select a company trading on the New York Stock Exchange (NYSE) that has not been posted by a fellow student,
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Retrieve the latest two annual reports from the company website under Investor Relations or via Mergent Online,
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Calculate the current ratio and profit margin ratio for the latest two years showing all calculations and interpret the results,
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Discuss what the ratios over the latest two years indicate about the company’s financial performance,
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Locate the Management Discussion and Analysis section in the latest annual report and summarize the main points in your own words,
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Locate the Auditor’s Report in the latest annual report, discuss the opinion given, and identify who conducted the audit,
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Provide your assessment of the chosen company based on this initial review using APA referencing style,