Financial Ratio Analysis

The fortune 500 company Institution of affiliation Date General motors Every business is striving a lot to ensure that they make a lot of profits as well as defeating its competitors. The information from the market is collected so that the managers of the company and the stakeholders will be in a position to make decision based on the current situation of the market for maximum maximization of the shareholders equity. In this case, an Automotive company is selected and analyzed based through calculation of various ratios which include current ratios, quick ratios, debt equity ratios, inventory ratios receivables turnover ratios, profit margin ratios and return on asset ratio. Also the importance of the ratios to the firm in decision making are discussed in this case. Importance of financial ratios in decision making There are several reasons that makes automotive firms and any other consider calculation of the financial ratios. For the firm to make precise decision that ensure that the business moves in the right direction. the decision that is made will be good for the managers of various departments including human resource managers to ensure that the goals of the workers and that of the business are conforming to avoid losses that may be experienced in that business period. Therefore, importance of each ratio that is calculated in excel is discussed in this paper. These advantages of the various ratios to the decision making of the firm is discussed. Current ratio Current ratio is the found by dividing the total liabilities by the total assets so that the amount...

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Select a Fortune 500 Company from one of the following industries: Pha...

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