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RATIO ANALYSIS


You are the director of investor relations for the company that you chose. In an email to a potential investor in the company, explain the change from the prior year to the current year for 4 ratios, at least one from each category (liquidity, solvency and profitability).

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You need to explain the following for each of the 4 selected ratios:
• The percentage amount of the change in the ratio (formula is new – old / old)
• Whether the ratio was better or worse in the current year than the prior year
• Suggest a change in the company that may have actually caused this change

The email should follow a similar format to a business memo, and should include an introduction, body and conclusion.

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