Assignment
Access your 10-K company's most recent financial statements and copy the Income Statement and Balance Sheet into an Excel worksheet for each financial statement. Calculate the following using Excel formulas for the last two years:
• Current ratio
• Accounts receivable turnover
• Total asset turnover
• Debt ratio
• Equity ratio
• Profit margin ratio
• Gross Margin ratio
• Return on total assets
• Return on common stockholders' equity
• 3-year trend analysis for sales, gross profit, and net profit
Organize your ratios into a table and make a third column that says Favorable/Unfavorable. Determine wheth the trend in each of the ratios is Favorable or Unfavorable. Be sure to put your company name on your spreadsheet and properly name all headings.
In addition to your spreadsheet, prepare a one to two-page written analysis of your findings (in Word). Be specific. As an example, a specific analysis might sound something like this. "Although Apple's Cost of Sales increased at a higher rate from 2011-2015 than Apple's net sales (217.4% vs. 215.9%), the difference between the two of 1.4% is not significant. Cost of Sales would be expected to increase if sales increase. Therefore, it important to compare the two rates of increase."
Remember, your assignment is to analyze your findings, not to provide definitions of the various ratios. A goo example of how CFO's analyze numbers would be in your company's Management Discussion and Analysis th is located in the 10-K (click on documents not Interactive data in SEC.gov)
Format your spreadsheet as explained in the video under Announcements.
https://www.dropbox.com/s/ne875w0pq4z2bjj/Filing.pdf?dl=0