Instructions
Gather the Financials information.
Access
D&B HooversLinks to an external site.
to search for companies by industry.
Select domestic public companies at
SEC.govLinks to an external site.
.
Access the
U.S. Securities and Exchange CommissionLinks to an external site.
to access your selected companies’ financial filings.
Select the Filings Tab and Company Filing Search in the drop-down menu to search for publicly traded companies.
Enter the selected company in the search engine to locate the required financial information to complete the
Company and Stock Analysis template
Download Company and Stock Analysis template
. (or)
Search for a Company’s Corporate Website and locate the link for investors to locate the required information to complete the Company and Stock Analysis template
Download Company and Stock Analysis template
.
Review the Income Statement, Balance Sheet, and Statement of Cash Flows to gather the information that you need to complete the Company and Stock Analysis template
Download Company and Stock Analysis template
.
Complete the Company Analysis in the
Company and Stock Analysis template.
Download Company and Stock Analysis template.
Determine the free cash flow for the last two most recent years for the two companies.
Select one company on each of the two different domestic (U.S.) stock exchanges to review.
Free cash flow is defined as cash flow from operations minus capital expenditures.
Explain how a company’s free cash flow affects its growth potential.
Include the inferences you can draw from a company’s free cash flow.
Complete the Company Analysis section including the Industry and the names of the three companies.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is not GAAP, because it usually presents more favorable numbers.
Complete the Balance Sheet section for each company’s Total Assets, Total Liabilities, and Total Stockholder’s Equity.
Calculate the following three ratios for each company and enter the results in the template (the formulas to calculate the ratios are provided in the template).
Debt-to-Equity Ratio.
Gross Margin.
Operating Margin.
Calculate the following ratios for each company using the 10k annual report and enter the results in the template (the formulas to calculate the ratios are provided in the template).
Efficiency ratios.
Leverage ratios.
Liquidity ratios.
Discuss three takeaways or an analysis of what you have learned about each company based on their financial data.
Include at least one paragraph for each company in the Template.
For help with research, writing, and citation, access the
library
or review
library guides
. You can also use the Notes to the Financial Statements that appear after the financial statements in the Annual (10K) Report, or you can use Management’s Discussion and Analysis in the Annual (10K) Report.
This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the
Library site
for all support. Check with your professor for any additional instructions.
FIN534: Financial Management
Name: Click or tap here to enter text.
Professor Name: Click or tap here to enter text.
Date: Click or tap here to enter text.
Company A
U.S. Stock exchange:
Company Name:
Determine the free cash flow for the last two most recent years for the two companies.
Explain how a company’s free cash flow (cash flow from operating activities minus capital
expenditures) impacts its growth potential.
Instructions: Find the numbers for these calculations from the income statement or balance sheet
for each company from the annual report or 10-K. Make sure the numbers are not from the 10-Q or
quarterly report as you want to make apples to apples comparisons.
Your Name:
Industry:
Company 1 Name:
Company 2 Name:
Company 3 Name:
Income Statement Information
Total Revenue
Company 1 Name:
Company 2 Name:
Company 3 Name:
Gross Profit
Company 1 Name:
Company 2 Name:
Company 3 Name:
Net Income
Company 1 Name:
Company 2 Name:
Company 3 Name:
EBITDA
Company 1 Name:
Company 2 Name:
Company 3 Name:
Balance Sheet Information
Total Assets
Company 1 Name:
Company 2 Name:
Company 3 Name:
Total Liabilities
Company 1 Name:
Company 2 Name:
Company 3 Name:
Total Stockholders’ Equity
Company 1 Name:
Company 2 Name:
Company 3 Name:
Ratios Calcu
Calculate the Following Ratios:
Debt to Equity Ratio
Debt/Total Equity)
Formula (Total
Company 1 Name:
Company 2 Name:
Company 3 Name:
Gross Margin
Formula
(Gross Profits/Sales)
Company 1 Name:
Company 2 Name:
Company 3 Name:
Operating Margin
Formula
(Operating Income/Sales)
Company 1 Name:
Company 2 Name:
Company 3 Name:
Find the appropriate amounts from the 10K annual report and insert them into the formula to calculate.
Formulas
Profitability ratios:
Profit margin = Net Income/Sales
Return on equity = Net Income/Shareholders’ Equity
Efficiency ratios:
Inventory turnover = Cost of Goods Sold/Average
Inventory
Accounts receivable turnover = Net Sales/Average
Accounts Receivable
Leverage ratios:
Debt to equity ratio = Total Liabilities/Shareholders’
Equity
Debt/Assets = Total Liabilities/Total Assets
Liquidity ratios:
Current ratio = Current Assets/Current Liabilities
Quick ratio = (Current Assets – Inventory)/Current
Liabilities
Discuss three takeaways or an analysis of what you’ve learned about each company based on their financ
Analys
Company 1 Name:
Company 2 Name:
Company 3 Name:
Company Analysis
st recent years for the two companies.
ow from operating activities minus capital
ations from the income statement or balance sheet
K. Make sure the numbers are not from the 10-Q or
apples comparisons.
ment Information
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eet Information
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Ratios Calculations
Total Debt
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Gross Profits
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$0.00
Operating Income
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$0.00
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ual report and insert them into the formula to calculate.
Company A
you’ve learned about each company based on their financial data. Include at least one paragraph for each company
Analysis
Company Analysis
Company 1
Note: Choose Net Income or EBITDA. Generally accepted accounting principles (GAAP) only requires the use of Net Income
and EBITDA is optional. Foreign companies generally do not follow GAAP and use EBITDA because it normally makes the
numbers look better.
Ratios Calculations
Total Equity
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Sales
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$0.00
Sales
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$0.00
o calculate.
Company B
on their financial data. Include at least one paragraph for each company.
Analysis
Company 2
cepted accounting principles (GAAP) only requires the use of Net Income
lly do not follow GAAP and use EBITDA because it normally makes the
Debt to Equity Ratio
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$0.00
$0.00
Gross Margin
$0.00
$0.00
$0.00
Operating Margin
$0.00
$0.00
$0.00
Company C
h for each company.
Stock Analysis
Instructions: Find the numbers for these calculations from the income
statement or balance sheet for each company from the annual report or
10-K. Make sure the numbers are not from the 10-Q or quarterly report
as you want to make apples to apples comparisons.
Your Name:
Industry:
Company 1 Name:
Company 2 Name:
Company 3 Name:
Stock
Ticker Symbol
Company 1 Name:
Company 2 Name:
Company 3 Name:
Stock Price
Include the stock price at the balance
sheet date. (Stock prices fluctuate daily
and are available in the Wall Street
Journal)
Fiscal Year End Date:
Company 1 Name:
Company 2 Name:
Company 3 Name:
Market Cap
Formula (Share Price/Number of
Shares)
Company 1 Name:
Company 2 Name:
Company 3 Name:
Price to Earnings Ratio
Formula (Share Price/EPS)
Company 1 Name:
Company 2 Name:
Company 3 Name:
Current Dividend Yield – Year End
Formula (DPS/Share Price)
Company 1 Name:
Company 2 Name:
Company 3 Name:
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Discuss the performance of the stocks, how the company’s performance impacts the stock performance, a
Include at least one paragraph for each company. You can consult the notes to the financial statements th
financial statements to find a detailed explanation or you can use Management’s Discussion and Analysis
Analysis
Company 1 Name:
Company 2 Name:
Company 3 Name:
formance impacts the stock performance, and their investment potential.
nsult the notes to the financial statements that appear right after the
se Management’s Discussion and Analysis in the Annual (10K) Report.
Analysis
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Formatting
Title Page
Citation
Outline
