FIN/571: Corporate Finance
Wk 1 – Financial Ratio Analysis [due Mon]
Purpose of Assignment
The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.
Select a Fortune 500 company from one of the following industries:
Retail – Amazon
Review the balance sheet and income statement in the company’s 2015 Annual Report.
Calculate the following ratios using Microsoft Excel:
Debt Equity Ratio
Inventory Turnover Ratio
Receivables Turnover Ratio
Total Assets Turnover Ratio
Profit Margin (Net Margin) Ratio
Return on Assets Ratio
Analyze in 1,050 words why each ratio is important for financial decision making.
Submit your analysis as well as your calculations.