Comparison Analysis

Using the Project Two Financial Formulas spreadsheet and the balance sheet, income statement, and cash
flow statement from Mergent Online for your chosen company, calculate the financial ratios for the most recent
fiscal quarter. Then, compare those ratios with the same ratios for the same fiscal quarter from one year prior
in Mergent Online, and analyze your results.
Specifically, you must address the following rubric criteria:
Financial Calculations: Calculate accurate financial ratios to assess the business’s current financial health.
Specifically, calculate the following ratios:
Working capital
Current ratio
Debt ratio
Earnings per share
Price/earnings ratio
Total asset turnover ratio
Financial leverage
Net profit margin
Return on assets
Return on equity
Fiscal Quarter Comparison: Using Mergent Online, summarize the differences between the results from your
financial calculations of the most recent fiscal quarter and the results of the same financial calculations of the
same fiscal quarter from a year before for your chosen business.
For example, if the most recent fiscal quarter available is the 3rd quarter in 2020, then you will compare those
results to the same financial calculations from the 3rd quarter in 2019.
Comparison Analysis: Explain what the results of your calculations and your comparison indicate about the
business’s current financial health, providing examples to support your explanation. You might consider the
following questions:
Do the results indicate the business is financially healthy or financially unhealthy? Which results indicate this?
What might be the cause(s) of the business’s financial success or failure?
Is more information needed to determine the business’s financial health? If so, which pieces of information
might still be needed?
Short-Term Financing: Explain how potential short-term financing sources could help the business raise
needed funds to improve its financial health. Base your response on the business’s current financial
The following resources can help you complete this milestone:
Video: Mergent Online: Public Company Financials (4:46)
Watch this video from the Shapiro Library to learn more about how to access and use Mergent Online.
Shapiro Library FAQ: How Do I Cite a Company Profile From Mergent Online?
Use this resource to help answer any questions you have about citing from Mergent Online.

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