Question

As the new financial manager of your company, the CEO has asked you to provide a brief analysis of the company’s performance to present at the upcoming board of directors meeting. The CEO has asked that you assess the company’s performance against your company’s industry. Thus, to do this, you will need to use ratio analysis or other techniques to determine areas in which the company is doing well, as well as areas that management should look at.

( you can pick the company)Determine which company you will analyze. As such, be sure that the company has debt on its balance sheet, as this will be a requirement for future projects.

Go to the website for your company and download the 10-K report for the most recent year.

Perform your ratio analysis on your company:

A good place to start would be to perform a complete DuPont analysis of the company. The DuPont analysis might provide guidance as to what particular areas of the company should be examined next and what ratios should be calculated. Be sure to include ratios that cover the following areas:

i. Profitability

ii. Debt Management

iii. Liquidity

iv. Asset Management

v. Market Value

In addition to the DuPont analysis ratios, be sure to present and discuss at least six relevant ratios that your team feels may best assess the company’s performance.

Using an online database, such as bizstats.com or a similar database, capture the ratio averages for your company’s industry to evaluate your company’s performance.

Provide an analysis that compares your company’s ratios to the industry standards. There is no need to explain the purpose of the ratios. Rather, be sure to provide an interpretation of the results. This may entail some research from news sources on the company’s recent performance.

URGENT: NEED ANSWER ASAP

PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT USE ORIGINAL CONTENT NOT USED BEFORE ON CHEGG

PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES ORIGINAL SOURCE NEVER USED BEFORE!!!

There is no additional information for it, you can wing it and just answer the best way you can, I'll take that.

Answer 1

du pont analysis: profit margin* asset turnover ratio* equity multiplier

i have picked pfizer which operates in the pharmaceutical business.

profit margin, return on assets, return on equity

profit margin: net profit/sales *100

33678/201726*100

=16.69%

return on assets: net incomes/assets *100

return on equity= net income/equity *100

debt management:

debt ratio: total debt/total assets

debt to equity ratio: debt/equity = 57.74/2480=0.023

the debt equity ratio is low which signifies a stable business. the company is funded more by its own assrts than by outside liabilities.

equity multiplier: total assets/owners equity

liquidity ratios: current ratio,cash ratio, quick ratio, working capital mangement ratio.

current ratio: current assets/current liabilities 2185/923

=2.36 more than 2 ratio, the effeiciency with which current assets are used in the company.

cash ratio: cash and cash equivalents/current liabilities

quick ratio: current ratio-inventories/liabilities

assset management ratios: asset turnover

sales/total assets

accounts payable turnover ratiio

total purchases/total accounts payable

: