Assignment Steps

Select a Fortune 500 company from one of the following industries:

Pharmaceutical – Johnson & Johnson

Review the balance sheet and income statement in the company’s 2015 Annual Report.

Calculate the following ratios using Microsoft Excel: (Be sure to submit your calculations with your assignment)

Current Ratio

Quick Ratio

Debt Equity Ratio

Inventory Turnover Ratio

Receivables Turnover Ratio

Total Assets Turnover Ratio

Profit Margin (Net Margin) Ratio

Return on Assets Ratio

Analyze in 1,050 words why each ratio is important for financial decision making.

Submit your analysis in a Word document as well as your calculations in Excel.

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