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Financial ratios and a comparison of the ratios

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Write a memo to your superior analyzing the performance of SAC for 2005 and 2006. This analysis should be based on the information found in the consolidated financial statements.

Your memo should include the following financial ratios and a comparison of the ratios over the two-year period:

current ratio
debt-to-equity ratio
inventory turnover (use ending inventory)
accounts receivable turnover (use ending accounts receivable balance)
gross margin percentage

Show your calculations for each ratio and comment on SAC's performance for each ratio. Discuss other tools/methods that could be utilized to analyze the financial performance of a company.

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Solution Summary

Response gives guidelines to calculate the financial ratios and to make a comparison of the ratios over the two-year period

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Write a memo to your superior analyzing the performance of SAC for 2005 and 2006. This analysis should be based on the information found in the consolidated financial statements.

Your memo should include the following financial ratios and a comparison of the ratios over the two-year period:

current ratio
debt-to-equity ratio
inventory turnover (use ending inventory)
accounts receivable turnover (use ending accounts receivable balance)
gross margin percentage

Show your calculations for each ratio and comment on SAC's performance for each ratio. Discuss other tools/methods that could be utilized to analyze the financial performance of a company.
Follow tables shows the ratio ( For calculations see the attached excel ...

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