Look at the ratio Excel sheet you downloaded from the Mergent database. Select at...

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Accounting

  1. Look at the ratio Excel sheet you downloaded from the Mergent database.
  2. Select at least two ratios from each category. These are the ratios you will use for your ratio template assignment.
  3. Now that you have an understanding of these ratios, analyze the performance of your company based on these ratios over the past five years.
  4. Next, you want to compare your companys performance to its industry. Click the file link below to review instructions to obtain industry data from the Mergent Database: How to Obtain Industry Data.docx How to Obtain Industry Data.docx - Alternative Formats
  5. To write part two of your analysis, you will perform a trend analysis - How did your company perform overtime in terms of each ratio?
  6. In addition, you will analyze how your company performed in relation to its industry. Your company might show that it is continually improving in one area, but it is lagging behind when compared to its industry.
  7. The final piece of your analysis is the conclusion in which you will make recommendations on the following:
    1. Would you consider this company a good company to investment in and WHY!
    2. Would you consider this company a good company to lend money to and WHY?
    3. In other words, if you were an investor, would you invest your money in this company? Also, if you were a creditor, would you lend money to this company?
  8. In detailing your response, be sure you are pulling data from your analysis, both financial statement and ratio, to support both of your conclusions.
  9. Your Mergent Ratio Excel Sheet should also be included as an attachment to your analysis.

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