Financial Ratios
I need 4 slides / 3 slides of graphs and notes and one slide reference page
Professor assignment instructions:
Rely on the videos and lesson information. Develop a PowerPoint presentation that addresses a public company financial statement. Select financial ratios of interest to supply chain managers. Create financial ratios in either formula or graphic form in the body of the PowerPoint slides. Add comments to the notes section of the presentation. In the notes section provide discussion and present citations. The references should be placed on the final slide. Minimum number of slides is five. Describe the difference between the selected company and at least one competitor’s financial ratios. Let readers know the company with the best overall return on equity.
Professor provided video: https://www.youtube.com/watch?v=2Np_ywAB2ro
Ratios and Formulas for Computing
Below are typical ratios and formulas for computing. They are divided into categories and useful for seeing the effect of changes on one statement to another statement.
Performance Ratios
Liquidity
Current
Current Assets/Current Liabilities
Acid Test
Less inventory
Asset Mgt.
Inv. Turns
Sales/Inventory
ACP
Receivable/360
Fixed asset Turnover
Sales/Fixed Assets
Total Asset Turns
Sales/Total Assets
Debt Management
Debt to Assets
Debt/Sales
Times Interest Earned
EBIT/Interest
Profitability
Margin
Net Income/Sales
Earning Power
EBIT/Assets
ROA
Net Income/Assets
Supply chain managers use the ratios to see the effect of changes to inventory strategy on the balance sheet and changes to the income statement resulting from cost reductions.