Sheet1Financial Statement Analysis Paper Rubric - CatrinaMissing/AbsentBelow ExpectationAt expectationAbove expectationTotalContent & Development (99 points)0%50%75%100%PointsCOMMENTSAvailableA) Discuss the industry selectedPoints1) Company Description00.00Not addressed32) Provide description of industry that selected company is in00.00Not addressed33) Business sector-Manufacturing, Service or Retail & reason for your election0.00Not addressed3B) Locates the financial statements for the company selected over 2017 and 20161) Attached Income Statement & Balance Sheet as appendices to paper for your selected companies00.00financial statements not provided62) Prepares computation worksheet for two year ratio calculations to show how ratio solutions are arrived at for followinga) Current Ratio1.51.50Computation error & fail to compute related 2nd year-see solution sheet3b) Quick Ratio11.00Computation error & fail to compute related 2nd year-see solution sheet30.4166666667c) Debt to Total Assets Ratio1.41.40Computation error & fail to compute related 2nd year-see solution sheet30.6666666667d) Inventory Turnover11.00Computation error & fail to compute related 2nd year-see solution sheet3e) Receivable Days Sales Outstanding00.50.50Computation error & fail to compute related 2nd year-see solution sheet5f) Total Asset Turnover1.51.50Computation error & fail to compute related 2nd year-see solution sheet3g) Profit Margin (Net Margin) Ratio1.251.25Computation error & fail to compute related 2nd year-see solution sheet3h) Return on Asset Ratio1.251.25Computation error & fail to compute related 2nd year-see solution sheet30.003) Discuss trend for each ratio & What each tells you about the financial health of your companya) Current Ratio3.53.50Good description of ratio but no interpretation as well as the year-to year trend not mention5b) Quick Ratio3.753.75Good description of ratio but interpretation needs to be spported as well as with the year-to year trend5c) Debt to Total Assets Ratio3.53.50Good description of ratio but no interpretation as well as the year-to year trend not mention5d) Inventory Turnover00.00Incorrect description of ratio and interpretation as well as the year-to year trend not mention5e) Receivable Days Sales Outstanding3.53.50Good description of ratio but no interpretation as well as the year-to year trend not mention5f) Total Asset Turnover Ratio3.53.50Good description of ratio but no interpretation as well as the year-to year trend not mention5g) Profit Margin (Net Margin) Ratio03.53.50Good description of ratio but no interpretation as well as the year-to year trend not mention5h) Return on Asset Ratio3.53.50Good description of ratio but no interpretation as well as the year-to year trend not mention5D) Analyze Return on Asets (ROA) for the 2017 and 2016 using Dupont method (Show computation) & interpretation of different variables1) Profit Margin00.00Never addressed32) Assset Turnover00.00Never addressed33) Inte.

1. Sheet1Financial Statement Analysis Paper Rubric -
CatrinaMissing/AbsentBelow ExpectationAt expectationAbove
expectationTotalContent & Development (99
points)0%50%75%100%PointsCOMMENTSAvailableA)
Discuss the industry selectedPoints1) Company
Description00.00Not addressed32) Provide description of
industry that selected company is in00.00Not addressed33)
Business sector-Manufacturing, Service or Retail & reason for
your election0.00Not addressed3B) Locates the financial
statements for the company selected over 2017 and 20161)
Attached Income Statement & Balance Sheet as appendices to
paper for your selected companies00.00financial statements not
provided62) Prepares computation worksheet for two year ratio
calculations to show how ratio solutions are arrived at for
followinga) Current Ratio1.51.50Computation error & fail to
compute related 2nd year-see solution sheet3b) Quick
Ratio11.00Computation error & fail to compute related 2nd
year-see solution sheet30.4166666667c) Debt to Total Assets
Ratio1.41.40Computation error & fail to compute related 2nd
year-see solution sheet30.6666666667d) Inventory
Turnover11.00Computation error & fail to compute related 2nd
year-see solution sheet3e) Receivable Days Sales
Outstanding00.50.50Computation error & fail to compute
related 2nd year-see solution sheet5f) Total Asset
Turnover1.51.50Computation error & fail to compute related
2nd year-see solution sheet3g) Profit Margin (Net Margin)
Ratio1.251.25Computation error & fail to compute related 2nd
year-see solution sheet3h) Return on Asset
Ratio1.251.25Computation error & fail to compute related 2nd
year-see solution sheet30.003) Discuss trend for each ratio &
What each tells you about the financial health of your
companya) Current Ratio3.53.50Good description of ratio but
no interpretation as well as the year-to year trend not
mention5b) Quick Ratio3.753.75Good description of ratio but

2. interpretation needs to be spported as well as with the year-to
year trend5c) Debt to Total Assets Ratio3.53.50Good
description of ratio but no interpretation as well as the year-to
year trend not mention5d) Inventory Turnover00.00Incorrect
description of ratio and interpretation as well as the year-to year
trend not mention5e) Receivable Days Sales
Outstanding3.53.50Good description of ratio but no
interpretation as well as the year-to year trend not mention5f)
Total Asset Turnover Ratio3.53.50Good description of ratio but
no interpretation as well as the year-to year trend not
mention5g) Profit Margin (Net Margin) Ratio03.53.50Good
description of ratio but no interpretation as well as the year-to
year trend not mention5h) Return on Asset Ratio3.53.50Good
description of ratio but no interpretation as well as the year-to
year trend not mention5D) Analyze Return on Asets (ROA) for
the 2017 and 2016 using Dupont method (Show computation) &
interpretation of different variables1) Profit Margin00.00Never
addressed32) Assset Turnover00.00Never addressed33)
Interpretation00.00Never addressed4E) The response is no
more than 1050 words in length04.004.00meet word
requirement495.0081.2%0%50%75%100%PointsWriting
Guidelines (6 points)0.00The introduction provides sufficient
background on the topic and previews major points. The
conclusion is logical, flows from the body of the paper and
reviews the major points.33.00Conclusion section need to recap
your major observations & conclusions as well as introduction
section need to tell what you will
discuss60%50%75%100%PointsReadability & Style (6
point)22.0018.8%Paragraph transitions are present and logical,
and maintain the flow throughout the paper. The tone is
appropriate to the content and assignment. Sentences are
complete, clear and concise. Sentences are well-constructed,
with consistently strong, varied sentences. Sentence transitions
are present and maintain the flow of thought.4.24.20run-on
sentence is major problem in your
paper60%50%75%100%PointsMechanics (10 points)117.00The

3. paper, including the title page, reference page, table and
appendices, follow APA guidelines. Citations of original works
within the body of the paper follow APA guidelines. The paper
is laid out with effective use of headings, font style and white
spaces.55.005Rules of spelling, grammar, usage and punctuation
are followed.55.005Total:55.35/117117Percentage
Earned47.3%Possible Points9Points Earned4.26For the most
part the ratio computations were done correctly with the major
exception of Receivable collection period. In addition, you
usedthe wrong fiscal years and only computed ratios for a single
year, thus, making year-to-year trend comparison impossible.
From interpretationperspective you missed the point of this
assignment. Though definition of the different ratio concepts
was provided, youfail to incorporate your own computed ratios
in your strength/weakness assessment nor the year-to-year trend
as referencefor good and bad trending. Finally, the company
description and industry sector part of the assignment was
completely overlooked.Please review assignment to ensure all
parts of week's requirement are addressed in order to minimize
such oversights.In general your paper is well written from a
grammatical mechanics perspective. Organizationally the
missing conclusionsection should recap your major observations
and conclusions of your paper discussion as well as introduction
section to previewwhat the paper will discuss. The readability
of paper is hampered by too many rambling run-on sentences.
You can minimize this problemby simplifying your sentence
structure and breaking your thoughts into smaller concise
sentences.
Sheet2
Sheet3
Running Head: Financial Ratios, General Motors
Financial Ratios, General Motors

4. Current Ratio
The current ratio normally refers to a company ability to pay its
short term obligations within a year. This mainly describes the
liquidity ratio which means the ability of a company to pay back
its short term debts or rather liabilities within a year using the
company’s assets (Kenton, 2003). These enables the investors to
make wise decisions when investing in companies by being
provided with some knowledge of the debt burden the company
currently has which also reflects on its ability to pay off their
various revenues in terms of annual returns on investments. A
higher current ratio for example 5 would mean that a company
has 5 times more assets over the liabilities. .- what does your
computed ratio tell us about company’s liquidity strength or
weakness? Year-to-year trend not referenced.
Quick Ratio
Quick ratio refers to a form of liquidity ratio which mainly
describes the ability of the company to repay its current
liabilities by the use of its quick assets only which means assets
that can easily be converted into cash within a period of 90 days

5. or within a very short time. This enables the company make
effective decisions when considering selling the company’s long
assets to repay its current liabilities. Higher quick ratios are
usually more desirable for investors which enables make them
make more effective decisions too. In the case of General
motors, the company has a very low ratio meaning that they
have to sell their long term assets to make up for any current
liabilities that needs to be dealt with. –observation is based on
what? Need to reference your computed ratio in support of your
conclusion as well as the year-to-year trending.
Debt Equity Ratio
The debt ratio mainly describes the ability of a company to
maintain its operations without running into solvency which is
normally done by comparing the company’s assets against the
liabilities, thus reflecting the company’s ability to repay its
debts using the assets meaning it normally reflects the debt
burden of the company.(run-on sentence) This enables the
investors to reach more conclusive decisions as to whether to
give a company a loan or not by looking at the debt burden of
the company. This also enables a company to make decisions on
the sources of capital available to them and the most viable ones
for example opting for equity instead of the borrowing of loans
from creditors. .- what does your computed ratio tell us about
company’s solvency strength or weakness? Year-to-year trend
not referenced
Inventory Turnover Ratio
This type of a ratio quantifies the company’s ability to
collect its various receivables from the clients. In return this
reflects on the effectiveness of the credit management the
company provides its clients (Kenton and Murphy, 2003). This
shows the type of customers the company has which impacts on
the decision of the investors since they can be sure to receive
their various equities and benefits in time without derail from
unpaid short term debts. The efficiency of the credit
management of a company tends to increase the interest of the
investors in the company.-incorrect definition- how many times

6. a company sales its inventory and thus recovery its cash from
the inventory investment.
Receivables Turnover Ratio
The receivables turnover ratio determines the company’s
effectiveness in the collection of the various receivables owed
by various clients the company has been dealing with (Kenton
and Murphy, 2003). This however provides the company with an
insight of how the company manages credit which is usually
closely related with how the customers are retained in the
company. This facilitates the company’s management with
proper platform to determine how they handle the policies so as
to effectively manage their receivables turnover ratio while at
the same time retaining the clients like reducing the strictness
of those policies regulating receivables to maintain quality
clients.(run-on sentence –need simplify sentence structure) .-
what does your computed ratio tell us about company’s asset
management strength or weakness? Year-to-year trend not
referenced
Total Assets Turnover Ratio
Total Assets Turnover ratio mainly measures the true measure
of a company to generate sales by comparing the net sales
against the average the total assets. This provides an overview
of the effectiveness of the company to use its assets in revenue
generation which in a big way reflects the effectiveness of the,
management and the production process which enables the
company make decisions in terms of the desired change to
increase productivity.-simplify sentence structure. This is
however done by comparison to other related companies as a
baseline for the measurement of the effectiveness of the use of
the various assets. This differentiates from the return on asset
ratio by including all of the assets in the formulation of the
ratio. .- what does your computed ratio tell us about company’s
asset management strength or weakness? Year-to-year trend not
referenced

7. Profit Margin (Net Margin) Ratio
The profit margin is usually used to describe the profitability
ratio that mainly shows the profit attained after all the expenses
are paid that was used in the initial production process.-
company’s ability generated profits from sales. This mainly
plays a role in the decision making by investors by providing an
overview of the company’s profits and their ability to payback
its loans. The total profits made should reflect on the company’s
ability to repay the loans accrued during the production process
Investors are therefore provided with an insight of the
efficiency of the company’s operations. .- what does your
computed ratio tell us about company’s profitability generating
strength or weakness? Year-to-year trend not referenced
Return on Assets Ratio
The return on assets ratio (ROA) is normally used to calculate
the amount of revenue generated by the company’s assets for a
certain period of time by simply comparing the total income
generated against the overall assets owned by the company. This
plays a big role in determining the potential profit that an
investment can bring into a company by measuring it against the
profit. This plays a very big role in making sure that investors
make the right choice before investing in any company which
applies in the sense that a higher ROA means that a company
makes wise decisions in the application of the various assets at
their disposal in the production process, hence the reason why
the ratio is normally used as a criterion for measurement of the
profits that come with an investment (My Accounting
Course[MAC], 2019). The comparison of the various ROA’s by
investors normally plays a very big role in the determination of
the right choice of investment. However, this is normally
limited to the companies that use the same type of assets for
example Hardware and machinery in building and construction
companies and software and computers for IT companies which
normally vary in terms of the cost of those products needed for
production. –simplify sentence .- what does your computed

8. ratio tell us about company’s profitability generating strength
or weakness? Year-to-year trend not referenced
DuPont analysis requirement for ROA not addressed in your
paper in identifying major driver behind ROA performance.
· Your paper is missing conclusion section that recaps the major
observations and conclusions of your paper discussion.
· Your paper is missing introduction section telling what you
will be discussing
References
My Accounting Course (MAC). (2019). Solvency Ratios.
Retrieved from https://www.myaccountingcourse.com/financial-
ratios/solvency-ratios
Will Kenton, & Chris B Murphy. (2003, November 25). Why the
Receivables Turnover Ratio Matters. Retrieved from
https://www.investopedia.com/terms/r/receivableturnoverratio.a
sp
Will Kenton. (2003, November 19). How the Current Ratio
Works as a Liquidity Ratio. Retrieved from
https://www.investopedia.com/terms/c/currentratio.asp#formula
-and-calculation-for-current-ratio