Financial reporting analysis

Use the company you chose in Week three, along with a comparable company within the same industry. Ratios
should be calculated using the two most recent completed years. Make sure to include a link to the financial
statements you are using.
Investors and lenders who read financial statements must determine the age, composition, and productivity of
operating assets.
For each company, determine:
(Replicate the five steps in the Ratio Analysis Model to perform the analysis.)
Formulate the Question
Gather the Information from the Financial Statements
Calculate the Ratio
Compare the Ratio with Other Ratios
Interpret the Ratios

Sample Solution