Bayer Financial Ratio Analysis purpose of Assignment The purpose of this assignment is to help students gain a better understanding of the financial state
Bayer Financial Ratio Analysis purpose of Assignment
The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions.
Select a Fortune 500 Company from the list below:
· Pharmaceutical – Bayer
· Energy – Chevron
· Retail – Walmart
· Automotive – Ford
· Computer Hardware – Apple
VERY IMPORTANT – TWO SUBMISSIONS ARE REQUIRED FOR THIS ASSIGNMENT
Step 1 – (Submit as an EXCEL spreadsheet)
Review the balance sheet and income statement in the company’s 2015 Annual Report (see links below).
Calculate the following ratios using Microsoft Excel. The calculations must be done in Excel and you must show your work. If you submit these in Word, you will not receive credit. If you do not show your work, you will not receive credit.
· Current Ratio
· Quick Ratio
· Debt Equity Ratio
· Inventory Turnover Ratio
· Receivables Turnover Ratio
· Total Assets Turnover Ratio
· Profit Margin (Net Margin) Ratio
· Return on Assets Ratio
Step 2 – (Submit as a WORD document in APA format)
Explain why each ratio is important for financial decision making for your chosen company. The discussion should only include your final answers and should be submitted in Word. Your outline for your paper should look similar to the following:
· Intro
· Current Ratio
· Quick Ratio
· Debt Equity Ratio
· Inventory Turnover Ratio
· Receivables Turnover Ratio
· Total Assets Turnover Ratio
· Profit Margin (Net Margin) Ratio
· Return on Assets Ratio
· Conclusion
· References
Each point above should be a paragraph containing 4-5 sentences, with the exception of the references page. There are required references for each assignment. Those are given to you below. So, all you need to do is copy, paste and then proceed to double-space, alphabetize and format into a hanging indent. You should not need to use other references. But if you do, format those using the Reference and Citation Generator Tool (see link below).
Minimum required references include your textbook and your chosen firm’s 2015 Annual Report link (see below).
The textbook reference is as follows:
Ross, S., Westerfield, R., Jaffe, J. & Jordan, B. (2016). Corporate finance (11th edition). New York, N.Y. McGraw-Hill Education.
The 2015 Annual Report reference is as follows (choose one company):
Bayer. (2015). Annual Report. Retrieved from https://www.bayer.com/en/entire-bayer-ar15.pdfx
Chevron. (2015). Annual Report. Retrieved from https://www.chevron.com/-/media/chevron/annual-report/2015/2015-Annual-Report.pdf
Walmart. (2015). Annual Report. Retrieved from https://s2.q4cdn.com/056532643/files/doc_financials/2015/annual/2015-annual-report.pdf
Ford Motor Company. (2015) Annual Report. Retrieved from https://corporate.ford.com/content/dam/corporate/en/investors/reports-and-filings/Annual%20Reports/2015-Annual-Report.pdf
Apple Inc. (2015). Annual Report. Retrieved from http://d1lge852tjjqow.cloudfront.net/CIK-0000320193/fae19475-b538-441b-ab15-0a311f161ebb.pdf
