Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2012 and 2013:\nAttach an excel spreadsheet showing the calculations \n\nLiquidity Ratios\nCurrent ratio [current assets / current liabilities]\nQuick ratio [(current assets – inventory) / current liabilities]\nAsset Turnover Ratios\nCollection period [accounts receivable / average daily sales]\nInventory turnover [cost of goods sold / ending inventory]\nFixed asset turnover [sales / net fixed assets]\nFinancial Leverage Ratios\nDebt-to-asset ratio [total liabilities / total assets]\nDebt-to-equity ratio [total liabilities / total stockholders’ equity]\nTimes-interest-earned (TIE) ratio [EBIT / interest]\nProfitability Ratios\nNet profit margin [net income / sales]\nReturn on assets (ROA) [net income / total assets]\nReturn on equity (ROE) [net income / total stockholders’ equity]\nMarket-Based Ratios\nPrice-to-earnings (P/E) ratio [stock price / earnings per share]\nPrice-to-book (P/B) ratio [market value of common stock / total stockholders’ equity]\nYou are now ready to interpret the ratios that you have calculated. If a ratio increased from 2012 to 2013, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.\n\nIf a ratio decreased from 2012 to 2013, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.\n\nIf a ratio was unchanged from 2012 to 2013, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.
