Be sure to sure to explain what all of the ratios mean, and what the calculated values indicate. If other events will significantly affect the financial health of the company, indicate that here as well.
The easiest source to use for this section is Capital IQ, but this must be accessed in Mann Library (unless you have an individual account). Visit the Capital IQ terminal on Mann Library's 1st floor. A link for Capital IQ will appear on the desktop. A username and password is available at the terminal if you have trouble accessing the database. Mergent is also good for this section and can be used anywhere.
Below are videos on how to calculate individual ratios for a company, it's top competitors, and it's industry, all for the last 5 years and all by using library resources.
in Capital IQ:
In Mergent Online:
There is more than one way to calculate most ratios. You do not have to use the formulas offered in these videos, however It is important that you remain consistant and calculate each ratio the same way for your company, the top competitors, and the industry
As part of the 1 page memo in your assignment, you're expected to conduct a simple valuation of your company to determine if the trading price is fair. You may choose how to conduct the valuation of your company. A popular method is through relative valuation and the usual ratios for relative valuation are either the Price to Earnings Ratio or Enterprise Value/EBITDA.
The above video will give you a brief and basic understanding of the Price to Earnings Ratio. It should be pointed out that the PE ratio does not mean much by itself. It requires an understanding of the industry, a comparison to major competitors, an understanding of historical performance (and historical PE ratios) and projections of future performance. These factors should all be considered when making your final determination.
If you're looking for a more in-depth explanation of the PE ratio, have a look at Khan Academy's longer and more detailed videos on the PE ratio.
...find the information I need to calculate the ratios?
...Where can I find the ratios?
...Calculate industry ratios?