Question

Use the Internet to research an annual report of a retail company. Then, imagine you are an investor or creditor and suggest the ratios that you believe would provide an investor or creditor with the most important information needed to make accurate predictions about the company’s financial condition. When analyzing a company, is it more important to compare the ratios to competitors or to the company’s previous history? Provide a rationale for your response. Note: You must provide a link or instructions to the researched report. discussion question

Answer 1

Ratios which provide most useful information to creditor/investor are as follows

1) Current ratio

2) Quike ratio

3) Debt to equity ratio

4) interest coverage ratio

5) gross margin ratio

6) Net profit ratio

7) return on asset ratio

8) return on capital employed

9) return on Equity

While Analyzing a company it is more important to compare ratios with previous history /performance of company as it will give cleat understanding of performance and growth made by company as compare to person previous performance..

Predictions can be made based on performance and comparison that how much company can expect to have made growth in future..how much outperformed have done by company as compare to previous situation can be analyzed..

So it is better to compare ratio with past history of company..

Link

http://www.annualreports.com/Company/national-retail-properties-inc

In that PDF file