This paper concentrates on the primary theme of Compute the eight ratios listed below for two consecutive years. Discuss their significance for management and compare them to industry averages. ? Current Ratio ? Quick Ratio ? Inventory Turnover Ratio (Note: on the Dunn and Bradstreet Web site this rat in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 79. For more details and full access to the paper, please refer to the site.
Evaluating an Annual Report: Proctor & Gamble
Chosen Company: Proctor & Gamble
Review Appendix A for details to include in your analysis of your chosen company`s financial health.
? Prepare a word paper that includes performance ratios based on the company`s last two annual reports and data available on the company`s Web site.
Compute the eight ratios listed below for two consecutive years. Discuss their significance for management and compare them to industry averages.
? Current Ratio
? Quick Ratio
? Inventory Turnover Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled Sales to Inventory)
? Debt Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled TotalLiabilities to Net Worth)
? Net Profit Margin Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on Sales)
? ROI (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on Assets)
? ROE (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on Net)
? Price-to-Earnings Ratio (P/E) Ratio
Analyze the company`s working capital management. Explain why the company`s operating and cash cycles are currently optimized. If you think they are not optimized,explain why.
Based on the company`s financial statements, list the long-term debt held by the corporation, maturity dates and yield to maturity. List the types of stock issued by the company, the stocks` current selling price, and the 52-week average selling price.
o Compute the weighted average cost of capital (WACC) for both years and discuss your findings.
o Write a brief analysis that summarizes how your company compares to industry averages.
o Write your recommendations on whether as an investor you should buy this company`s stock and why.