QUiz 3 take home-1
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California State University, Fullerton *
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610
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Finance
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Jan 9, 2024
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Quiz # 3: Your project company Using the latest FY for your company’s 10k and information from Mergent, Bloomberg or other sources:
1) Post your selected ratios, applicable, for activity, liquidity, solvency and profitability for the FYE 2022, FYE 2021 and FYE 2020. No more than 5 per category. Use Mergent or Bloomberg or your own calculation. Downloading an excel file is fine. Do not worry if they differ slightly between sources, it happens.
2) You must make a STATEMENT on TWO ratios that you feel is critical for this company and why
a. Example: The debt/EBITDA ratio is critical for American Airlines because they have $ 8 zillion dollars of debt to service and might not enough free cash flow to invest in the future of the airline. Without that investment American could fall further behind its competitors which does not have
as much debt.
3) In reviewing the ratios over time which ratio(s) show any changes that seem worthy to note and would require more analysis. At a minimum one ratio from each category requires some supporting analysis. Show that you are piecing together the story.
a. Example: the days payables have been growing so the company must be managing its working capital closer. b. It is taking longer to collect it’s A/R, is something happening. Is A/R growing faster than sales?
c.
Inventory has been growing at a rates greater than sales which is straining operating cash flow
d. Debt has been reduced/increased because……..
4) Ratios to use are posted under the Financial Statement Techniques module or in your readings. No more than five for any
category.
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