Resources: Industry Averages and Financial Ratios Video Find a publicly-traded company on Yahoo!® Finance or Mergent Online with total assets less than $10 billion (other than Starbucks).
You will find your company by entering the name or the stock symbol. Locate the SIC code for the company's industry using the company summary in Mergent Online or by following the directions in the video. Find the industry ratios for the company using the Dun & Bradstreet® Key Business Ratio link in the University Library (Business Directories and Financials/Dunn and Bradstreet).
Please be aware that D&B does not report all of the ratios. This is not a problem. Just make sure that some of the ratios that you have chosen are included. Alternatively, you can compare two companies in the same industry (same SIC code). Assume the inventory ratio is based on a traditional inventory system, but globalized markets and the supply chain make it critical to adopt lean principles to create a more efficient system. Discuss what a change to a Just- In- Time inventory system would have if adopted. What information about the company's inventory management is provided in the annual report?
Calculate at least eight (8) different financial ratios for the last four (4) years from the different types of ratios discussed in your text.
Show your calculations for the company using Mergent Online to locate its four most recent annual financial statements. Be careful not to use quarterly information. Be sure to analyze the information, providing critical commentary about the information provided by the ratios.
What do these ratios tell you about the company's financial operations and condition? How do they compare to the industry in which they operate or to a competitor? Compare the ratios for the company you selected with the appropriate industry ratios including profitability, solvency, and efficiency ratios shown on the D&B Report. Prepare a written report OR a PowerPoint® presentation that integrates your data in graphs and analyze what the ratios indicate about the entity that you have selected. Be sure to include an introduction that tells the audience where you are going and a conclusion that summarizes your findings.