Why each ratio is important for financial decision making

 
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. 
Assignment Steps 
Select a Fortune 500 Company from one of the following industries:

Pharmaceutical
Energy
Retail
Automotive
Computer Hardware

Review the balance sheet and income statement in the company’s 2015 Annual Report. 
Calculate the following ratios using Microsoft® Excel®:

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

Analyze in 1,050 words why each ratio is important for financial decision making. 
Submit your analysis as well as your calculations. 

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