How is the company performing over recent years?
Assume you are an analyst for an investment firm, and you have been asked to prepare a report on a particular company (selected from the Russell 3000 listing in Canvas). You will do so by:(a) calculating a series of ratios for a three-year period. In your ratio listing, show the detail (numerator and denominator) used for each of the ratios, and calculate three years of ratios so that the trends can be seen. (Note: You will need to go back four years to determine some balance sheet averages for the third year back.) Round the numbers in an appropriate and consistent manner and show percentages as percentages;(b) writing a 3-5 page narrative (length will be longer if the ratios are embedded in the narrative). Discuss the trends and positive/negative nature of the ratios. You can discuss each individually, but it might be useful to group ratios to some degree in the context of the three categories in order to identify significant trends. Bottom line: How is the company performing over recent years?The narrative portion of the paper should be double-spaced; Times New Roman/12 pt or Calibri/11 pt font. Present the ratios in a well-organized manner.Note: A recommended approach to obtaining the financial information is to access financial statements through the SEC website and downloading financial results into Excel (save the relevant tabs for the balance sheet, income statement, and statement of cash flows).Assessment:Grading will be based on the accuracy (17 points) and clarity (3 points) of the calculations and on the quality and thoughtfulness of the narrative (15 points) and writing (sentence structure, appropriate language; 5 points).RATIOSGeneral1)Horizontal Analysis (total assets and total liabilities & equity each = 100%; net sales = 100%)2)Vertical Analysis (percentage increases or decreases over prior year)Liquidity and Solvency measures3)Working Capital4)Current Ratio5)Accounts Receivable Turnover6)Days Sales in A/R7)Inventory Turnover8)Days Sales in Inventory9)Times Interest Earned10)Free Cash FlowProfitability measures11)Gross Profit Margin12)Return on Equity, broken down into Margin; Turnover; Leverage13)EBITDA14)Earnings per Share (EPS) of Common Stock15)Price-Earnings Ratio16)Dividends per Share17)Dividend Yieldnotesall the information and data in the atoner file from finial statement of Ford company of year 2017 (you may not need all the report, all the focuses on the finical statment and supportive information.attached some equation for solving the measures
