Taking the role of a financial analyst within the company, prepare an executive dashboard (performance report) on a large, publicly traded company of your choice (e.g., Cisco, Walmart, IBM, Apple, etc.) by computing and comparing its ratios against the 11 industry average ratios listed in Problem 4-23 on page 129 of the text.
Use the provided Financial Ratio Excel Spreadsheet to show the computed financial ratios for your chosen company. Prepare your performance report to show calculations for the 11 ratios listed on page 129, as well as a comparison of your computed ratios with the listed industry averages. The comparisons, including a list of your computations in a table, should be added as an appendix to the memo described below and submitted as a separate Excel spreadsheet.
Write a memo (approximately 2–3 pages) to your supervisor explaining your findings and your recommendations for where improvements are needed to increase financial health. Be sure to Include the following:
Areas within the company that are both above and below industry standards
An explanation of the limitations of using ratio analysis
The qualitative factors that play a role in improving the company’s financial health
In the memo, suggest some specific ways in which the company can plan to improve below industry average ratio performance over time. Suggest annual targets over the next three years to catch up with or surpass industry averages. Explain why your recommendations should be effective.
