An example of the use of financial ratio analysis

University of Wollongong

Research Online
Faculty of Commerce - Papers Faculty of Commerce

2004

An example of the use of financial ratio analysis: the case of Motorola
H. W. Collier
University of Wollongong, [e-mail]

T. Grai
Oakland University, USA

S. Haslitt
Oakland University, USA

C. B. McGowan
Universiti Kebangsaan Malaysia, [e-mail]

Publication Details
This article was originally published as Collier, H, Grai, T, Haslitt, S and McGowan, CB, An example of the use of financial ratio analysis: the case of Motorola, Decision Sciences Institute Conference, Florida, 2-6 March 2004.

Research Online is the open access institutional repository for the University of Wollongong. For further information contact the UOW Library: [e-mail]

An example of the use of financial ratio analysis: the case of Motorola
Abstract

In this paper, we demonstrate the use of actual financial data for financial ratio analysis. We construct a financial and industry analysis for Motorola Corporation. The objective is to show students exactly how to compute ratios for an actual company. This paper demonstrates the difficulties in applying the principles of financial ratio analysis when the data are not homogeneous as is the case in textbook examples. We use Motorola as an example because the firm has several segments, two of which account for the majority of sales and represent two industries (semi-conductor and communications) that have different characteristics. The case illustrates the complexity of financial analysis.
Disciplines

Business | Social and Behavioral Sciences
Publication Details

This article was originally published as Collier, H, Grai, T, Haslitt, S and McGowan, CB, An example of the use of financial ratio analysis: the case of Motorola, Decision Sciences Institute Conference, Florida, 2-6 March 2004.

This conference paper is available at Research Online: http://ro.uow.edu.au/commpapers/24

An