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    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. ...

    Solution Summary

    This discusses the Ratio analysis of Yahoo

    $2.19

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