Understanding the limitations of financial ratios

MT217M2: Analyze financial statements ratios used to measure the financial performance of a business entity.

GEL-1.03: Demonstrate college-level communication through the oral delivery of original materials in Standard English.

GEL-6.05: Adapt research skills to discover and sort relevant sources to complete tasks

Financial statement analysis is the process of analyzing a company’s financial statements to make better economic decisions. The process for financial statement analysis includes specific techniques for evaluating risks, performance, and future prospects of an organization.

Directions

This Assessment is separated into four parts. In Part 1 of this Assessment, you will begin by researching and summarizing four of the benefits of financial analysis and indicating which is the most significant to you. In Part 2  of this Assessment, you will define and properly classify the financial classifications and ratios listed below.  In Part 3 of this Assessment, you will calculate and explain the significance of the Liquidity, Profitability, and Market Value financial ratios, and provide a year to year comparison of assessed financial trends. In Part 4 of this Assessment, you will compose an analytical essay in a minimum of 350 words reporting the one financial measurement trend you find to be most significant.

Use the Word template provided to complete your Assessment.

Minimum Submission Requirements

1.This Assessment should be in a separate Microsoft Word document. Use this template for your Assessment.

2. Respond to the questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. Your paper should be highly organized, logical, and focused.

3. Your paper must be written in Standard English and demonstrate exceptional content, organization, style, grammar, and mechanics.

4. Your paper should provide a clearly established and sustained viewpoint and purpose.

5. Your writing should be well ordered, logical and unified, as well as original and insightful.

6. A separate page at the end of your paper should contain a list of references, in APA format. Use your textbook, the Library, and/or the internet for research.

Be sure to cite both in-text and reference list citations were appropriate and reference all sources. Your sources and content should follow proper APA citation style. Review the APA formatting and citation style resources found in the Writing Center. The Writing Center can be found in the Academic Success Center in the Academic Tools area of your course. (It should be in Times New Roman 12-point font, include correct citations, Standard English with no spelling or punctuation errors, and correct references at the bottom of the last page.)

If work submitted for this competency assessment does not meet the minimum submission requirements, it will be returned without being scored.

Plagiarism

Plagiarism is an act of academic dishonesty. It violates the University Honor Code, and the offense is subject to disciplinary action. You are expected to be the sole author of your work. Use of another person’s work or ideas must be accompanied by specific citations and references. Whether the action is intentional or not, it still constitutes plagiarism.

For more information on the Plagiarism policy, refer to the current Catalog.

Directions for Submitting Your Course Assessment