Choose 1 publicly traded company and review the most recent balance sheet and income statement for a company whose reports are posted on a website, such as Yahoo Finance.
Calculate the financial ratio you selected for the company you chose using ratio below.
|Financial Leverage Ratios
|Total Debt to Total Assets
|Input the debt to total assets.
|Equity Multiplier (times)
|Input the equity multiplier.
In most instances, the calculations are simple and can be automated in spreadsheets. However, for this discussion, you’ll want to perform the calculations yourself.
Respond to the following in a minimum of 175 words:
- What is the ratio you chose? Explain what this ratio means.
- What were the results of your calculation? Show your work to the class, including the formula you used, the data you input for your calculation, and the company name in your response.
- What might you infer about the company’s financial performance as it relates to this ratio?
- Which other ratios might you find helpful to confirm what your original ratio calculation told you?