Horizontal and Vertical Analysis & Financial Ratios (Excel)

The corporation is HCA Healthcare.
Link:https://s23.q4cdn.com/949900249/files/doc_financials/2021/ar/HCA-2021-Annual-Report.pdf

For the horizontal anlaysis: you have to show changes year to year in numbers and in percentages
For vertical anylsis: on the IS show each item as a % of net sales. Fro the B/S show each item as a % of Total Assets. For cash Flwo Stmt show each item as a % of cash flows from operations.
Look at the guide :
https://corporatefinanceinstitute.com/resources/knowledge/finance/analysis-of-financial-statements/

Horizontal and vertical analysis will allow you to begin analyzing the data in each financial statement. These techniques are part of analytical procedures. If you have never performed a horizontal or vertical analysis of financial statements, the textbook provides an example. I also created a video that is uploaded into the Term Research Paper webpage that walks you through the process.
Video examples of Horizontal and Vertical Analyses in excel:
The following are links to several good videos that walk you through the horizontal and vertical analysis process.


Requirement #4: Financial Ratios
Using the data in the Income Statement, Balance Sheet and Cash Flow Statement you developed, you are to independently calculate all the ratios on the following table labeled Required Common Ratios to Calculate, for each year, over at least a two to three year period (depending on the ratio). These common ratios are found in most accounting textbooks. Ratio analysis looks at the relationships of the different parts of financial statements. Combining horizontal and vertical analyses with ratio analysis provides powerful analytical tools to expose areas of risk for decision makers. The reason that you should calculate these ratios over at least two to three years is two-fold. First, you will begin to see more meaningful patterns beyond horizontal and vertical analyses. Second, you will use the data to create charts to visualize the patterns side by side with other ratios

Required Common Ratios to Calculate
Three Liquidity Ratios:
Current ratio

Inventory turnover

Receivables turnover

Two Solvency Ratios:
Debt to total assets

Debt service coverage ratio

Four profitability ratio:
Gross profit margin
youtube.com/watch?v=e2DI6B7BWzs
Profit margin ratio

Return on assets ratio

Asset turnover ratio

You are encouraged to use any other ratios that you deem may be useful to your analysis. There are ratios available that are particular to certain industries that we have not listed. If a particular ratio does not make sense for your corporation do not use it. We uploaded a video into the Term Research Paper webpage walks you through the ratio analysis requirement.

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