This will use the following downloadable documents that you can find in this module.
(a) Staple case (12 PDF files = 12 page long case). If you see certain files up side down, please click “View”, then, “Rotate view” to fix it. (My sincere apology in advance!)
(b) Ratio Analysis Worksheet (1 Word document file). Please work on this document and submit it as an attachment.
Now, please work on the following tasks. This will be challenging, ok? Try and/or show me your effort or struggles!
Go over Staple case. While financial part of the case is indeed important, please read the while case to have more information for your analysis! Of course, you will find both Income Statement and Balance Sheet of Staples to work.
(1) Calculate various financial ratios on the worksheet. You can find formulas in your textbook! Do not worry too much for miscalculation, OK? Challenging is important!
(2) Check/analyze the ratios to make your comments on liquidity, leverage, activity, and profitability of Staples. If you found some issues, please make suggestions to improve or maintain liquidity, leverage, activity, and profitability of Staples. Do this part as much as you can. This part is more important than “calculation” of the ratios!!!