Summarize the story of profitability and liquidity for your company. In other words, highlight the most important aspects of your report, including your major conclusions|Quick homework help
Posted: February 10th, 2023
Overview: In your final project, you will assume the role of an accountant and complete the year-end adjustment process for your company using a provided workbook. This workbook is the first deliverable (Part I) of your final project. In Part II, you will analyze the provided financials of the same company and create a report documenting your findings.
For your third milestone, you will complete a draft of your ratio analysis report so that you can gain feedback and improve your work prior to the final submission in Module Eight. Note that you do not need feedback from Milestone Two to successfully complete this assignment. You should use the provided Final Project Part II template to structure your submission.
Prompt: Specifically, the following critical elements must be addressed:
- Abstract: Summarize the story of profitability and liquidity for your company. In other words, highlight the most important aspects of your report, including your major conclusions.
- Computations: Identify and describe your computations from the Financial Analysis tab of your workbook. Be sure to format your key results in a table or graphical format, as appropriate. Explain why each cited figure was included in your report in terms of its importance for the organization.
- Comparison: Evaluate the financials of the company by comparing current ratios to both historical and industry-average ratios. Clearly identify all unexpected or aberrant figures.
- Conclusion: Draw informed conclusions based on your computations and comparisons in the previous paragraphs. Be sure to justify your claims with specific evidence and examples.
Rubric
Guidelines for Submission: Your ratio analysis report must be 2–3 pages in length (plus a cover page and references) and written in APA format. Use double
spacing, 12-point Times New Roman font, and one-inch margins. All references must be cited in APA format.
SOLUTION
Here are the steps you can follow to complete a draft of your ratio analysis report:
- Review the financial statements: Before you start calculating ratios, it’s important to have a good understanding of the financial statements of the company, including the balance sheet, income statement, and cash flow statement.
- Choose the ratios to be calculated: There are many financial ratios that you can use to analyze a company’s performance, including liquidity ratios, solvency ratios, profitability ratios, and efficiency ratios. Choose the ratios that are most relevant to your analysis and the company you are analyzing.
- Calculate the ratios: Use the financial information from the company’s financial statements to calculate the chosen ratios. Make sure to use consistent time periods when calculating ratios.
- Interpret the ratios: After calculating the ratios, interpret their meaning and what they reveal about the company’s financial performance, position, and liquidity.
- Compare the ratios to industry benchmarks: To gain a better understanding of how the company is performing in relation to others in its industry, compare the calculated ratios to industry benchmarks.
- Write the report: Use the provided Final Project Part II template to structure your report. Include an introduction, explanation of the ratios you have calculated, interpretation of the results, comparison to industry benchmarks, and conclusion.
- Review and revise: After completing your draft, review it carefully for accuracy and clarity. Revise as necessary to improve the report before the final submission.
I hope this information helps you complete your ratio analysis report. Good luck!
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