Calculate essential finacial ratios for your Company Facebook

ACCT 280 Financial Accounting

Week 4 Discussion

Calculate essential financial ratios for your company (FACEBOOK)

Calculate financial ratios for a second company of your choice

Compare the financial ratios of the two companies

REQUIRED: do the following activities and post your response to the questions below

Use the publicly-traded company you selected in week 1. You will continue to research and investigate the same company throughout the remainder of the course.

Citations: Cite your sources. Include links to your online sources at the bottom of your post. I should be able to click the link and find the source information you worked from.

Part 1 Financial Ratios and Analysis

Refer to Chapter 14 in your text. There you will find coverage of financial ratios which are used to analyze financial statements. Use the ratio formulae you find there to answer the questions below. Show how you calculated your answers.

  1. Return on Assets
  2. Return on Equity
  3. Debt Ratio
  4. Net Income as a percentage of Net Sales

Part 2 Comparison and Evaluation ——— —— (USE BEST BUY) I DIDN’T SEE ANYONE ELSE USING THEM

  • Select one other company of your choice that is not being reported on by any student in the class, find their 2 most recent years of financial statements, and calculate the same ratios as above. Compare the second company with your company’s ratios and analysis, side-by-side.
  • Which company appears to have a provide a better return to investors, and better results of operations?
  • Explain why you came to these conclusions (quantify your conclusions).

Part 3 Market and News

  • What was the company’s stock price at the end of week 4?
  • How much did the price per share go up or down in, both dollars and percent, from the stock price you reported in Discussion 1, at the beginning of week 1? ——- (4 WEEKS AGO)
  • If you had purchased 100 shares of stock at the beginning of week 1 what would be your total gain or loss by the end of week 4?
  • What was the volume on the last trading day of week 4?
  • Charting stock prices: they say a picture is worth a thousand words. View the stock price chart and adjust it to show the most recent 6 months, one year, 5 years, and maximum data (there are usually links directly above the chart for these time spans). Describe what you saw by looking at the charts. What are the benefits of viewing information in a chart versus a text list of stock prices?
  • Company news: Find and report on two significant news items, market analysis reports or press releases that were published within the past two weeks, about the company specifically. What influence do you think this information may have on investors either in the short term or long term?
  • Segment news: Find and report on one significant news item or market analysis report about the company’s market segment. What influence do you think this information may have on investors either in the short term or long term?