Ratio analysis of Yahoo
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Ratio Analysis Assignment
Action Items:
1. Write a two-page paper describing ratio analysis.
a. Outline the components of ratio analysis and how it is used in financial analysis and decision-making.
b. Include the strengths, weaknesses and limitations of using ratio analysis.
c. Describe the types of questions or information that ratio analysis can provide about a firm's financial situation and financial performance.
2. Select one of the companies below to analyze
Tootsie Roll, Inc
? http://www.tootsie.com/
? NYSE: TR
Yahoo, Inc
? http://yhoo.client.shareholder.com
? NASDAQ: YHOO
Tiffany, Inc
? http://www.tiffany.com/
? NYSE: TIF
Foot Locker, Inc
? http://www.footlocker-inc.com/
? NYSE: FL
3. Go to the firm's Website and download a copy of the last two years' financial statements. Usually you can find this information under the "Investors" section of the Website.
4. Prepare a two-year comparative ratio analysis using the ratios outlined below. You may use an Excel spreadsheet to show your comparisons or a Word document.
Liquidity Ratios
? Current Ratio
? Quick Ratio (Acid-Test)
Activity Ratios
? Inventory Turnover
? Receivables Turnover
? Fixed Asset Turnover
Profitability Ratios
? Operating Profit Margin
? Net Profit Margin
? Return on Equity
? Earnings Per Share
Leverage Ratios
? Debt/Net Worth Ratio (Debt to Equity Ratio)
Coverage Ratios
? Time Interest Earned
5. Prepare a one-page memo interpreting and summarizing your findings on the ratios. Give your conclusions about any changes that occurred from year-to-year. What corrective actions would you recommend based on the ratio analysis and why?
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Ratio Analysis Assignment
Action Items:
1. Write a two-page paper describing ratio analysis.
a. Outline the components of ratio analysis and how it is used in financial analysis and decision-making.
b. Include the strengths, weaknesses and limitations of using ratio analysis.
c. Describe the types of questions or information that ratio analysis can provide about a firm's financial situation and financial performance. ...
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