Using your company’s Form 10-K from the Annual Report Project – Section 3 assignment, analyze your company’s financial statements for the last 3 years. Include the following items as supplemental schedules to your analysis. Prepare these schedules as individual worksheets within an Excel spreadsheet:Prepare a calculation of at least three significant activity (asset) ratios:
- Average collection period
- Accounts receivable turnover
- Days in inventory
- Inventory turnover
Prepare a calculation of at least three significant profitability ratios:
- Net profit margin ratio
- Return on assets
- Gross profit margin ratio
- Return on total equity
- Total asset turnover
In a summary of 500-750 words, analyze the financial strengths and weaknesses of your company based on the results of the profitability and activity ratios analyses. Your analysis should be more than just a restatement of the results of the ratios. The analysis should provide some possible reasons for why the ratios increased or decreased over the time analyzed. Consider the relationships between the types of accounts and correlations that should (or should not) occur with the ratios.
You will submit two items for this assignment:
- An Excel file with separate tabs for the activity and profitability ratio calculations.
- A Word document with your analysis.
While APA style is not required for the body of this assignment, solid academic writing is expected, any documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.
Refer to “Annual Report Project – Section 5 Rubric” prior to beginning the assignment to become familiar with the expectations for successful completion.
You are required to submit this assignment to LopesWrite. Please refer to the directions in the Student Success Center.