Financial analysts must evaluate the performance of the company and compare that performance over time. One way to evaluate the financial performance of a company is to calculate financial ratios. Ratios can be used to assess a company’s profitability, liquidity, efficiency, and financial risk (leverage). Changes in these ratios over time can alert a financial analyst to poor management or strong shareholder returns. For this discussion, you will calculate some common financial ratios for your chosen publicly traded company.
Prior to beginning work on this discussion forum,
Need help with your calculations? Check out the videos included in this resource: Week 2 Discussion Help (Links to an external site.).
In your initial discussion forum post,
Guided Response: Review several of your colleagues’ posts, and reply to at least two of your peers by 11:59 p.m. on Day 7 of the week. You must respond to two classmates who have calculated different ratios than you. In your written responses to your classmates, address the following: