Overview In prepara�on for your report in Project Two, you will need to calculate the financial ra�os needed to determine your chosen business’s current financial health. Once you’ve calculated these ra�os, the results will be used to analyze the business’s current financial posi�on and help them make decisions about how to improve or maintain their financial health. Pay par�cular a�en�on to working capital management. If liquidity is an issue, consider how the company will meet its short-term obliga�ons. Prompt Using the Project Two Financial Formulas spreadsheet and the balance sheet, income statement, and cash flow statement from Mergent Online for your chosen company, calculate the financial ra�os for the most recent fiscal quarter. Then, compare those ra�os with the same ra�os for the same fiscal quarter from one year prior in Mergent Online, and analyze your results. Specifically, you must address the following rubric criteria: Financial Calcula�ons: Calculate accurate financial ra�os to assess the business’s current financial health. Specifically, calculate the following ra�os: Working capital Current ra�o Debt ra�o Earnings per share Price/earnings ra�o Total asset turnover ra�o Financial leverage Net profit margin Return on assets Return on equity Fiscal Quarter Comparison: Using Mergent Online, summarize the differences between the results from your financial calcula�ons of the most recent fiscal quarter and the results of the same financial calcula�ons of the same fiscal quarter from a year before for your chosen business. For example, if the most recent fiscal quarter available is the 3rd quarter in 2020, then you will compare those results to the same financial calcula�ons from the 3rd quarter in 2019. Comparison Analysis: Explain what the results of your calcula�ons and your comparison indicate about the business’s current financial health, providing examples to support your explana�on. You might consider the following ques�ons: Do the results indicate the business is financially healthy or financially unhealthy? Which results indicate this? What might be the cause(s) of the business’s financial success or failure? Is more informa�on needed to determine the business’s financial health? If so, which pieces of informa�on might s�ll be needed? Short-Term Financing: Explain how poten�al short-term financing sources could help the business raise needed funds to improve its financial health. Base your response on the business’s current financial informa�on. The following resources can help you complete this milestone: Video: Mergent Online: Public Company Financials (4:46) Watch this video from the Shapiro Library to learn more about how to access and use Mergent Online. https://learn.snhu.edu/content/enforced/683624-FIN-320-T4324-OL-TRAD-UG.21EW4/Course%20Documents/FIN%20320%20Project%20Two%20Financial%20Formulas.xlsx?_&d2lSessionVal=WlZFbqEh7sMqXKsmS3ceFsUGR&ou=683624 https://libguides.snhu.edu/mergentonline https://www.youtube.com/watch?v=QWjBUz4mGQQ&feature=youtu.be https://app.readspeaker.com/cgi-bin/rsent?customerid=9568&url=https%3A%2F%2Flearn.snhu.edu%2Fcontent%2Fenforced%2F683624-FIN-320-T4324-OL-TRAD-UG.21EW4%2FProject%2520Two%2520Milestone%2520Guidelines%2520and%2520Rubric.html&lang=en_us&voice=9568&readid=d2l_read_element_1 Shapiro Library FAQ: How Do I Cite a Company Profile From Mergent Online? Use this resource to help answer any ques�ons you have about ci�ng from Mergent Online. Guidelines for Submission Your submission should be a 2 to 3 page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. You must also submit the Project Two Financial Formulas spreadsheet (which you will fill in completely as part of your Project Two submission) and the Excel files for your downloaded balance sheet, income statement, and cash flow statement from Mergent Online. Project Two Milestone Two Rubric Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Financial Calcula�ons N/A Calculates accurate financial ra�os to assess the business’s current financial health (100%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include calcula�ng more accurate financial ra�os to assess the business’s current financial health (85%) Does not a�empt criterion (0%) 21 Fiscal Quarter Comparison Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100%) Summarizes the differences between the results from the financial calcula�ons of the most recent fiscal quarter and the results of the same financial calcula�ons of the same fiscal quarter from a year before for the chosen business (85%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include summarizing in more detail the differences between the results from the financial calcula�ons of the most recent fiscal quarter and the results of the same financial calcula�ons of the same fiscal quarter from a year before for the chosen business (55%) Does not a�empt criterion (0%) 21 https://libanswers.snhu.edu/faq/335085 https://learn.snhu.edu/content/enforced/683624-FIN-320-T4324-OL-TRAD-UG.21EW4/Course%20Documents/FIN%20320%20Project%20Two%20Financial%20Formulas.xlsx?_&d2lSessionVal=WlZFbqEh7sMqXKsmS3ceFsUGR&ou=683624 Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Comparison Analysis Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100%) Explains what the results of the calcula�ons and the comparison indicate about the business’s current financial health, providing examples to support the explana�on (85%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in more detail what the results of the calcula�ons and the comparison indicate about the business’s current financial health or providing more relevant examples to support the explana�on (55%) Does not a�empt criterion (0%) 22 Short-Term Financing Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100%) Explains how poten�al short- term financing sources could help the business raise needed funds to improve its financial health and bases the response on the business’s current financial informa�on (85%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in more detail how poten�al short-term financing sources could help the business raise needed funds to improve its financial health, or basing the response on the business’s current financial informa�on (55%) Does not a�empt criterion (0%) 21 Ar�cula�on of Response Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100%) Clearly conveys meaning with correct grammar, sentence structure, and spelling, demonstra�ng an understanding of audience and purpose (85%) Shows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, nega�vely impac�ng readability (55%) Submission has cri�cal errors in grammar, sentence structure, and spelling, preven�ng understanding of ideas (0%) 10 Cita�ons and A�ribu�ons Uses cita�ons for ideas requiring a�ribu�on, with few or no minor errors (100%) Uses cita�ons for ideas requiring a�ribu�on, with consistent minor errors (85%)r Uses cita�ons for ideas requiring a�ribu�on, with major errors (55%) Does not use cita�ons for ideas requiring a�ribu�on (0%) 5 Total: 100%