Question.2589 - This week, you’ll review a balance sheet and income statement, and then calculate common financial ratios to evaluate the company’s financial performance. These are simple formulas, but they may seem intimidating. In most instances, the calculations are simple and can be automated in spreadsheets. However, for this discussion, you’ll want to perform the calculations yourself. Choose 1 financial ratio that you will need to calculate for this week’s assignment. Try to choose a ratio that has not been chosen by another student. Choose 1 publicly traded company and review the most recent balance sheet and income statement for a company whose reports are posted on a website, such as Yahoo Finance. Calculate the financial ratio you selected for the company you chose. Due Thursday Respond to the following in a minimum of 175 words: What is the ratio you chose? Explain what this ratio means. What were the results of your calculation? Show your work to the class, including the formula you used, the data you input for your calculation, and the company name in your response. What might you infer about the company’s financial performance as it relates to this ratio? Which other ratios might you find helpful to confirm what your original ratio calculation told you?
Answer Below:
Debt xx Equity xxxxx The xxxx to xxxxxx ratio xx a xxxxxxxxx ratio xxxx measures xxx relative xxxxxxxxxx of xxxxxxxxxxxx amp xxxxxx and xxxx used xx finance x company xxx s xxxxxx It xx calculated xx dividing x company xxx s xxxxx liabilities xx its xxxxx shareholders xxx equity xxx higher xxx ratio xxx more xxxxxxxxx a xxxxxxx is xxxxxxx it xxx more xxxx relative xx its xxxxxxxxx capital xxxxx Debt xxxxx term xxxx Long xxxx Debt xxxxx Equity xxxxxxxxxxx rsquo x Fund xxx Company x have xxxxxxxx is xxxxxxxxx Corporation xxxxxxxxx Enterprise xx an xxxxxxxx worldwide xxxxxxxxxx organization xxxxxxx in xxxxxxx Washington xx Debt xx Equity xxxxx of xxxxxxxxx This xxxx debt xx equity xxxxx indicates xxxx the xxxxxxx is xxxxxxxxx its xxxx to xxxxxxx its xxxxxxxxxx while x low xxxx to xxxxxx ratio xxxxxxxxx that xxx company xx utilizing xxx equity xxxx the xxxxxx to xxxxxxx its xxxxxxxxx The xxxx debt xx equity xxxxx is xxxx for xxx company xxx other xxxxxx which xxxxx help xxx Turnover xx Assets xxxxxx Ratio xxxxxxx RatioReferences xxxxxxxxx Corporation xxxx Stock xxxxx News xxxxx amp xxx History x Yahoo xxxxxxx n x https xxxxxxx yahoo xxx quote xxxx Peterson xxxxx P xxxxxxx F x Analysis xx Financial xxxxxxxxxx United xxxxxx Wiley xxxxx www xxxxxx co xx books xxxxxxx Analysis xx Financial xxxxxxxxxx u xxxxxx AJ xx enMore Articles From Finance