Teams are required to formulate definitions for the formulas needed to compute the financial ratios listed below. The created definitions will be submitted for instructor review and evaluation. Teams are expected to incorporate noted corrections in subsequent work. This is an important step that provides the foundation for activities during Weeks 4 and 5.
Ratios should be defined as follows:
- Liquidity Ratios (define the name of the ratio group)
- Current Ratio = Current Assets/Current Liabilities (this is how to provide the formula you will use)
Define the remaining liquidity ratio and move on to the next ratio group. Below are the ratio groups that require formulas.
- Current Ratio
- Quick Ratio
- Debt to Equity
- Debt to Total Assets
- Interest Coverage
Management Efficiency Ratios
- Accounts Receivable Turnover
- Days Sales Outstanding
- Days of Inventory
- Accounts Payable Turnover
- Gross Margin
- Operating Margin
- Return on Assets
- Return on Equity
In your paper,
- Define all listed ratios.
- Create definition list using a quality reference in addition to the text.
The Course Project Part 1 – Define Project Ratios paper
- Must be three to four double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Writing Center (Links to an external site.)’s APA Style (Links to an external site.) resource.
- Must include a separate title page with the following:
- Title of paper
- Student’s name
- Course name and number
- Instructor’s name
- Date submitted
For further assistance with the formatting and the title page, refer to APA Formatting for Microsoft Word (Links to an external site.).
- Must utilize academic voice. See the Academic Voice (Links to an external site.) resource for additional guidance.
- Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
- For assistance on writing Introductions & Conclusions (Links to an external site.) as well as Writing a Thesis Statement (Links to an external site.), refer to the Writing Center resources.
- Must use at least one credible source in addition to the course text.
- The Scholarly, Peer-Reviewed, and Other Credible Sources (Links to an external site.) table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
- Must document any information used from sources in APA style as outlined in the Writing Center’s Citing Within Your Paper (Links to an external site.) guide.
- Must include a separate references page that is formatted according to APA style as outlined in the Writing Center. See the Formatting Your References List (Links to an external site.) resource in the Writing Center for specifications.