Case Study Analysis Liquidity, Debt, and Operating Ratio

| December 8, 2017

Assignment 2: Case Study
Analysis Discussion—SMH Liquidity, Debt, and Operating Ratios
In this assignment, you will calculate ratios and analyze the
data collected in
M1: Assignment 2. You will compare ratios from the SMH data to ratios calculated
from the comparative facilities.
Measure the liquidity, debt, and operating ratios of the FP and
NFP organizations, particularly the following:
A. Liquidity
Current ratio
Acid test ratio
B. Operating performance
Return on assets
Operating profit total
and percentage
Investment yield
Return on equity
C. Management efficiency
Days in accounts
receivable (AR)
Days inventory on hand
Days cash on hand
Use an Excel spreadsheet that you downloaded inM1: Assignment 2, to create tables to
compare the data from SMH to the data from the other facilities. You will use
two years of data for comparison. Present data for each of the above
categories on one sheet. Ensure that all formulas are included in the
calculations. The facilitator will review both the accuracy of the data and
the efficient use of Excel.
If you need help with the calculation of ratios, some commonly
used ratios are explained in the Financial Ratios document available in theDoc Sharing area.
For more help with calculations, you can use the following Web

(2009).Financial terms.
Retrieved March 10, 2009,″>

Once you master the calculations, you should understand how to
use the ratios to analyze business situations. Your facilitator will post
fictional but realistic scenarios. Apply your understanding of financial
analysis and interpret the data.
Use the following file naming convention:
BySunday, September 8, 2013, submit your assignment to theM2: Assignment 2 Dropbox.
ThroughWednesday, September 11,
2013, actively participate in discussion as you apply your
understanding of financial analysis to the scenarios presented by your facilitator.
All written assignments and responses should follow APA rules
for attributing sources.

Assignment 2 Grading Criteria

Maximum Points

For research and

Measurements displayed
adequate analysis of data for the FP and the NFP organizations.


Measurements displayed
adequate comparison of data for the FP, the NFP, and the SMH data set.


For scenario analysis

Supported assertions
with reasons, examples, and references to reliable sources.


Actively contributed to
the discussion by providing points of view with rationale, challenging
points of the discussion, or drawing relationships between points of the


Wrote in a clear,
concise, and organized manner; demonstrated ethical scholarship in accurate
representation and attribution of sources, displayed accurate spelling,
grammar, and punctuation.




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