OL 501 Milestone Two Worksheet
In this assignment, look at the financial statements of your chosen company and calculate some basic financial ratios to analyze the company’s health and performance.
- Fill in the table below with information from the financial statements provided in your chosen company’s case study. Calculate the % change between the current year and previous year for each item. Remember to correctly identify the currency for your case study.
| Most Current Year | % Chg (+/–) | Previous Year | |
| Current Assets | |||
| Total Assets | |||
| Current Liabilities | |||
| Total Debt | |||
| Sales/Revenue | |||
| Cost of Goods Sold | |||
| Inventory | |||
| Net Income/Loss |
- From the information in the table above, identify which line items are increasing with a plus sign and which are decreasing with a minus sign. Evaluate whether the change from the previous year is good or bad for the company’s performance and explain why.
- Use the information in the table above to calculate the following financial ratios. Explain what the result of each ratio says about your chosen company’s financial health.
- Current Ratio
- Debt to Asset Ratio (Debt Ratio)
- Inventory Turnover
- Return on Sales (Profit Margin)
- Summarize your information and identify potential problem areas as reflected in the financials.
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