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Ratio Analysis Use data from Morningstar for your company for the last five (5) years, use morningstar ratio definitions, follow the partial example format and complete the following: Students are to calculate the following ratios1 and provide a narrative/interpretation for each. 1. Liquidity - Calculate the current ratio. 1. Excel cells should clearly identify the inputs from your firms financial statement(s) for your ratio calculation(s). 2. Report the values provided by Morningstar. 3. Provide a brief narrative. Note use the most recent Industry Average, Sector Average and/or the S&P500 Average for comparison purposes as appropriate and available. See footnotes below. 2. Debt Management - Calculate the Debt-to-Equity Ratio2 1. Calculate the Debt-to-Equity Ratio. 2. Excel cells should clearly identify the inputs from your firms financial statement(s) for your ratio calculation(s). 3. Report the values provided by Morningstar. 4. Provide a brief narrative. Note use the most recent Industry Average, Sector Average and/or the S&P500 Average for comparison purposes as appropriate and available. See footnotes below. Submit: Excel spreadsheet. For narratives, place a text box within a spreadsheet. Label all tabs. Include all relevant financial statements. See rubric for more information. Notes: 1. For industry average data use CNBC. For example, Industry Averages for MMM. See Key Measures. 2. Use Morningstars debt-to-equity ratio it is defined as Long-Term Debt and Capital Lease Obligation / Common Equity. Other less common situations (not entirely an exhaustive list): If Morningstar reports a ratio as a dash line, for example -, this usually means that it does not fit the usual definition. For example, negative equity is a common variable generating a dash. This is not an indication of missing data. The company to use is Walmart.

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