Step 1: Select a publicly-traded company
Step 2: Locate financial ratio data from Mergent Oline and/or http://www.advfn.com. Please notice that financial ratios are grouped into appropriate categories (Profitability Ratios, Liquidity Ratios, Debt Management Ratios, and Asset Management Ratios), which makes it easy to set up the ratios and use them in the analysis.
Step 3: Enter the financial ratio data of the publicly traded company you selected into the Financial Ratio Analysis Model (in the attached Excel spreadsheet below). The data you find needs to be entered in the yellow-coded cells (column is titled “Oldest Year”) progressing to the most recent year on the left (column is titled “Most Recent Year”).
The attached excel spreadsheet presently contains financial information for McCormick & Company (Stock Ticker MKC).
NOTE: You will note that the Excel spreadsheet model is programmed to calculate if each ratio improved or deteriorated over the time period. And, the spreadsheet is programmed to calculate the percentage change in each of the ratios during the same period. This information should be helpful as you prepare your analysis.
Step 4: Prepare an analysis and discussion of the financial ratio data for the publicly traded company you chose.