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MGT 300: Management Theory and Practice: Financial Ratios

This course guide is to assist those students taking Management Theory and Practice (300). [Originally created by Marty Branch, Business Librarian]

Overview

You need to locate three financial ratios for your company, for one competitor and for the industry as a whole.  You need to find the Current Ratio, the Total Debt to Equity (sometimes called Total Debt to Net Worth) and the Return on Assets

What do these ratios tell you about the company's finances?  Are they doing better or worse than their competitors or their industry?  

Ratio Videos

This video shows you how to locate the company and competitor financial ratios using the Mergent Online database.

https://www.screencast.com/t/htW5OJodnB

 

This video shows you how to locate the industry ratios using the First Research database.

https://www.screencast.com/t/gmiLyEd5

Ratio Handout

Library Reference Materials

There are several reference books that will further assist your research of company ratios using industry benchmark data:

Helpful Books

Wells Fargo- Spring 2019

A special note about the Ratios for Wells Fargo.  Banks do not use the Current Ratio as a measure of liquidity.  Instead, they use a ratio called Loan-to-Deposit.  You can read more about this ratio at https://www.investopedia.com/terms/l/loan-to-deposit-ratio.asp

To locate the ratios for Loan-to-Deposit for Wells Fargo, a competitor, and the industry as a whole, check out this article from Forbes magazine:  https://www.forbes.com/sites/greatspeculations/2018/06/25/largest-u-s-banks-to-benefit-from-improving-loan-to-deposit-ratios/#5ef2c7826f03

External Resources

Library Resources