Ratio Analysis in Practice

Ratio analysis can provide both internal and external users with a tremendous amount of information about firm performance. Select a publicly traded manufacturing firm in the manufacturing sector and have the students conduct a ratio analysis of this firm and report their findings.

1. Does the firm have any problem areas that you would investigate further if you were a manager?

2. Are there any other specific pieces of information that you would request from your management team with regards to this firm? If so, why?

3. Would you invest money in this firm based on your analysis?