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# Financial Analysis: Ratio Analysis

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What are the standards for comparisons in financial analysis? Give an example of each.

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Financial Analysis: Ratio Analysis

Ratio analysis is used for the comparison in financial analysis.
Ration analysis
Ratio analysis is an important technique of financial analysis. It is the process of determining and interpreting numerical relationship between figures of the financial statements. Absolute figures are valuable but they standing alone and convey the meaning unless compared with other. Some of the important ratios are:
Current ratio
This ratio establishes a relationship between current assets and current liabilities. In other words, it matches the ...

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This response addresses the queries posed in 339 Words, APA References.

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## Manufacturing company's annual report

Find a manufacturing company's annual report.

Calculate the following ratios for the company ( company selected below) selected:

Return on Assets
Return on Equity
Gross Profit Margin
Debt/Equity Ratio
Debt Ratio
Current Ratio
Quick Ratio
Inventory Turnover
Total Asset Turnover
Price Earnings Ratio
Using the calculated ratios, analyze the financial performance of the firm. In a memo to the CEO, explain the ratios calculated. Also address other methods of analyzing financial statements besides ratio analysis. Lastly, explain your analysis of the firm, making recommendations for improvements.

Tootsie Roll Corporation (2006) http://www.tootsie.com

Calculate the following ratios for 2006: (NOTE 2006)

Return on Assets
Return on Equity
Gross Profit Margin
Debt Ratio
Current Ratio
Debt/Equity Ratio
Inventory Turnover
Quick Ratio
Price Earnings Ratio
Total Asset Turnover

Using the calculated ratios, analyze the financial performance of the firm

In a memo to the CEO, explain the ratios calculated

Also address other methods of analyzing financial statements besides ratio analysis

Lastly, include within your analysis of the firm, recommendations for improvements

2000 words - original work - apa format references - original work

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