Financial analysing

[Jeffrey Fok]

I am doing a exercise that require to calculate ratios and data analysing.
The data are calculated as follow:

Financial Ratios - Annual Results 2012 2011 2010
Liquidity Ratio
Current Ratio 4.991289199 3.178490737 3.476635514
Quick Ratio 2.862369338 1.918210574 2.068535826
Cash Ratio 0.950058072 0.554450972 0.783800623
Leverage Ratio
Debt-to-Total-Assets Ratio 0.266740407 0.278654699 0.267693104
Total Debt Ratio 0.266740407 0.278654699 0.267693104
Times-Interest-Earned Ratio 6.833333333 6.505102041 7.414893617
Total Debt/Equity 0.363773497 0.386298627 0.365547703
Return on Investment Analysis
Return on Equity (%) 18% 15% 11%
Return on Total Assets (%) 13% 11% 8%
Profitability Analysis
Operating Profit Margin (%) 17% 16% 12%
Earning Per share 4.610778443 3.230538922 1.796407186
Activity Ratio
Inventory Turnover 2.418712493 2.471136608 2.290265487

I do not know how to anaylze the data...
Anyone can help me with it?

1. Where is the firm financially strong/weak as indicated by financial ratio analysis?
2. Can the firm raise needed short-term capital?
3. Can the firm raise needed long-term capital through debt and/or equity?
4. Does the firm have sufficient working capital?
5. Are capital budgeting procedures effective?
6. Are dividend payout policies reasonable?
7. Does the firm have good relations with its investors and stockholders?
8. Are the firm’s financial managers experienced and well trained?
9. Is the firm’s debt situation excellent?

[mrpaseo]

Sounds like a tough class. Have you tried picking a firm and calling them to ask them the specific questions? You may find the info in their prospectus.

Best.