Here is the basis for grading your Week 3 financial statement analysis. You can use it as a checklist to ensure

Here is the basis for grading your Week 3 financial statement analysis. You can use it as a checklist to ensure
that your assignment is as complete and as correct as possible.
Procedure
1. Evaluate short­term solvency ratios
2. Evaluate profitability in relation to revenues
3. Evaluate profitability in relation to equity
4. Calculate the 4 ratios of the DuPont Analysis and evaluate what they mean for strategy, These ratios are
ROE, Profit Margin on Sales, TATO and the Equity Multiplier.
5. Evaluate long­term solvency
6. Evaluate market value ratios (not just book value ratios)
7. Correctly interpret results for items above. At random, we will test a few calculations for accuracy
8. Combine all findings into a coherent final summary Each item above carries roughly equal weight