Directions: Place Your Ratio Calculations In The Excel Tab

Question

Directions Place Your Ratio Calculations In The Ms Excel Table Templa Place your ratio calculations in the MS Excel table template for Mastercard. Provide the formula used to calculate each ratio in the column to the right of your calculations. For example, for calculating the Gross Margin for a company, you would enter Gross Profit / Sales (gross profit divided by sales). When calculating values, you should use the SUM function in MS Excel and reference the values directly from the accounting statements provided. Attached you will find an example for PayPal and the calculations for Gross Margin and Operating Margin using MS Excel SUM function.

Dr. Jack HW Helper · Accepted Answer

Introduction Financial ratio analysis is a crucial tool for evaluating a company's financial health and performance. By utilizing Excel's capabilities, analysts can efficiently compute various ratios using linked data from accounting statements. This report demonstrates the process of calculating key financial ratios for Mastercard using Microsoft Excel, following the provided instructions and template guidelines. Methodology The process involved importing relevant financial data into an Excel spreadsheet, organizing data into appropriate columns, and applying formulas to calculate specific financial ratios. The key ratios computed included gross margin, operating margin, net profit margin, return on assets (ROA), and return on equity (ROE). All calculations utilized the SUM function and direct cell references from the provided financial statements to ensure accuracy and clarity. Calculations and Formulas Following the example provided for PayPal, the formulas were adapted for Mastercard as follows: Gross Margin Formula: =Gross_Profit / Revenue This was calculated by referencing the cells containing gross profit and total revenue from Mastercard's income statement. The formula in Excel might look like: =B2/B1 where B2 is gross profit and B1 is total sales/revenue. Operating Margin Formula: =Operating_Income / Revenue Similarly, the operating income and revenue data were referenced in Excel, with a formula such as =B3/B1. Additional Ratios Net profit margin, return on assets, and return on equity were calculated in a similar manner, incorporating direct cell references and the SUM function where necessary. For example, net profit margin was computed as =Net_Profit / Revenue. Results The calculated ratios provide insights into Mastercard's profitability, efficiency, and overall financial stability. For instance, a high gross margin indicates effective cost management at the production level, whereas strong ROE reflects efficient utilization of shareholders' equity. Di

Directions: Place Your Ratio Calculations In The Excel Tab ✓ Solved

Directions Place Your Ratio Calculations In The Ms Excel Table Templa

Sample Paper For Above instruction

Introduction

Methodology

Calculations and Formulas

Gross Margin

Operating Margin

Additional Ratios

Results

Discussion

Conclusion

References