Learning Team Assignment - Ratio Analysis Memo
Resource: Virtual Organizations
Click the Virtual Organization link on the student website to access the Virtual Organizations.
Select one of the Virtual Organizations as the basis for the assignment.
Obtain faculty approval of your selected organization before beginning the assignment.
Access the information contained in your selected organization’s balance sheet and income statement to calculate the following:
• Liquidity ratios
• Profitability ratios
• Solvency ratios
Show your calculations for each ratio.
Create a horizontal and vertical analysis for the balance sheet and the income statement.
Write a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:
• What do the liquidity, profitability, and solvency ratios reveal about the company’s financial position?
• Which users may be interested in each type of ratio?
• What does the collected data reveal about the company’s performance and position?