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Unit 4 Assignment Finance and Operations

UNIT 4 ASSIGNMENT

Q Assignment: Finance and Operations This week we look at finance and operations, and apply a bit of quantitative analysis to the effort. Your assignment is to analyze current financial ratios for a given business. 1. Think of a specific business you find interesting, i.e. Apple, UTC, Southwest Airlines, etc. 2. Search the web for that business’ “Financial Statement.” (You will find many hits for the data.) 3. Select the http://www.morningstar.com/ site offering your company’s financial statement. 4. You will now see a number of financial ratios for your company. Below is an example for Apple: http://financials.morningstar.com/ratios/r.html?t=AAPL 5. Now, define the following ratios, note the ratio for your business, and explain what the ratio means for the business moving forward: a) Return on Assets b) Return on Equity c) Return on Capital d) Gross Margin e) SG&A Margin f) Current Ratio g) Quick Ratio h) Total Debt/Equity i) Total Revenue j) Gross Profit Here are some additional resources: Apple (Return on Assets): https://ycharts.com/companies/AAPL/return_on_assets Ratios: https://www.stock-analysis-on.net/NASDAQ/Company/Apple-Inc/Ratios/Profitability/Quarterly-Data#Ratios-Summary Use the following guidelines: • Use APA format with a title page, in-text citations and references. No abstract required. • Research and cite at least 2 credible sources in APA format. • Upload your assignment to the Assignment link by Sunday at 11:59 pm (EST)

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The business which interested me is Walmart Inc. The chain of line of business interest me as it has large number of stores in the world. Return on Assets : The ratio implies the profits or revenue generated by company’s asset. The efficiency of the assets to generate revenue for the company. The return on assets is 0.0653 which means operating income/total assets is 0.0653. Return on equity: The ratio implies the return to the shareholder on the equity. The financial performance of the company is indicated through this ratio as the net assets available for the equity shareholder is total assets - total liability. The company’s return on equity is 20.22 . This means net income shareholder equity is 20.22.