Financial analysts must evaluate the performance of the company and compare that

Financial analysts must evaluate the performance of the company and compare that performance over time. One way to evaluate the financial performance of a company is to calculate financial ratios. Ratios can be used to assess a company’s profitability, liquidity, efficiency, and financial risk (leverage). Changes in these ratios over time can alert a financial analyst to poor management or strong shareholder returns. For this discussion, you will calculate some common financial ratios for your chosen publicly traded company.
Prepare:
Prior to beginning work on this discussion forum,
Read Chapter 11 of the Essentials of finance.Specifically review the “A Closer Look” feature box in Section 11.3.Complete the Week 2 – Learning Activity.Make sure you have completed the Week 1 – Assignment 1.
Calculate:
Calculate the following two ratios for your chosen company, Using Appendix A from Week 1, calculate the ratios for your chosen company for the two most recent years available in the financial statements.
Gross profit margin and net profit margin
Write:
In your initial discussion forum post,
Create a table within your discussion post that includes the following information:the financial data used to calculate each ratio in the 2 years for your chosen companythe last 2 years (clearly labeled)the calculations and the concluded ratio. Explain what your two ratios measure.Attach your Appendix A (that you completed in Week 1) to your discussion post so that other students can review your data and calculations.