Mandatory Instructions
Write a 3-5 page report comparing the above
ratios to industry averages. Discuss whether your company’s profitability,
efficiency, liquidity, and solvency are better than, or worse than, its peers.
The report should be well written with cover page, introduction, body of paper
(with appropriate subheadings), conclusion, and reference page. References must
be appropriately cited. Format: Double-spaced, one-inch margins, using a
12-point Times New Roman font with **zero plagiarism and zero errors.
Company name – Ali-baba Inc.
The purpose of this comprehensive project is to use resources
available to obtain industry averages for commonly used ratios. Additionally,
you will compare company ratio results to industry averages.
- Obtain
the four-digit primary SIC (Standard Industrial Classification) Code and
industry title for your company. Record the primary SIC code and industry
title at the top of the Ratio Analysis Worksheet.
- Obtain
industry averages for commonly used ratios in the current period. Industry
average information is reported by industry title or SIC code.
- Look
up the following industry-average ratios:
- Current ratio
- Debt ratio
- Gross profit margin
- Times interest earned
Accounts receivable turnove