Capital Budgeting and Financial Management Analysis

Capital Budgeting and Financial Management Analysis

Attached below are the materials needed for the assignment. Looking at pages 34 through 39 may be helpful

1. Once you have accessed these resources: Compute each of the ratios listed (below) for the two most recent years. Create a table showing the ratio value for both years, the amount of change over the prior year, and whether the ratio for the current year is more or less favorable than the preceding year.

Ratios To Be Calculated:

 

Liquidity ratios

Current ratio

Quick ratio

Cash ratio

 

Solvency ratios

Debt ratio

Times interest earned

Cash coverage ratio

 

Asset utilization ratios

Inventory turnover

Days sales in inventory

Receivables turnover

Days sales in receivables

Total asset turnover

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Profitability ratios

Profit margin

Return on assets

Return on equity

2. For at least 5 of the ratios you have calculated include a paragraph (one for each ratio) consisting of:

(a) Insights (if any) from the MD & A as to why the ratio is better or worse than the prior year

(b) Your own explanation of what has caused the ratio to be better or worse than the prior year. This is the most important part of your analysis. In specific terms… tell me what has happened at Texas Instruments that has caused the ratio to increase or decrease over the prior year.

3. List and briefly discuss the top 5 things (besides the ratios) you find interesting about the company.

4. Your completed document should include a cover page and a table of contents. It should be organized (and clearly labeled) as follows:

Introduction

Body

Table of ratios

Analysis

Interesting Facts

Conclusion.