Using the same company and annual reports that you chose in your Week 1 – Discussion Forum, Reading and Using the Annual Report Case Study, address the following:
Calculate the gross profit ratio, operating margin ratio, and net income margin ratio for the latest two years, and obtain the industry average ratios (if available). You may use the Mergent Online database, available through the UAGC Library, or another outside resource of your choice.
If needed, review the How to Find Industry Ratios and Averages Using Mergent Online Links to an external site.tutorial on how to use the Mergent Online database.
Analyze these ratios and discuss what each of these ratios tells you about the company’s profitability, and how it compares to the industry averages.
Note any trends in these ratios from year-to-year, and discuss your assessment of the company based on these changes.
If you were an investor, explain why you would or would not buy stock in the company.
