Financial Ratio Calculations
Access the U.S. Securities and Exchange Commission website in the reading and resources section. Find the financial statements of the company of your choice. (Snapchat)
https://www.sec.gov/edgar/searchedgar/companysearch)
For the company’s latest reporting period, calculate the:
- Average receivables collection day (Days Receivables Outstanding)
- Average days inventory in stock (Days Inventory Outstanding)
- Average days payables outstanding (Days Payables Outstanding)
- Operating Cycle and Cash Conversion Cycle
Submit your source financial statements in a Microsoft Word document. You may use screenshots for this part. Submit your calculations in an Excel file.
Overview
Submit your source financial statements (screenshots are fine) and narrative components in a Microsoft Word document. Submit your calculations in an Excel file.
Directions
Access the U.S. Securities and Exchange Commission website, which is linked in the module’s Reading and Resources section.
Specifically, you must address the following rubric criteria:
- Find the financial statements of a company of your choice. For the company’s latest reporting period, calculate the:
- Average receivables collection day (Days Receivables Outstanding)
- Average days inventory in stock (Days Inventory Outstanding)
- Average days payables outstanding (Days Payables Outstanding)
- Operating Cycle and Cash Conversion Cycle
- Write a brief narrative interpreting the ratios and their implications for the company.
- Support your responses by referencing the textbook, the simulation, and other scholarly sources, as they will add substance to your report.
What to Submit
Submit a 2 to three paragraph response in a Microsoft word document with the source financial statements and narrative. The word file should be written in 12- point Times New Roman font, double spaced with one-inch margins. Additionally, include an Excel file with the calculations.
