Assignment
The purpose of this assignment is to analyze and evaluate financial statements for decision making. Each student is expected to prepare a 2-4 page report as well as a 3-5 minute presentation with findings.
Please choose one publicly traded company (include the ticker symbol on the report). Obtain the last three annual report financial statements for the company and use the skills and techniques discussed in chapters 3 and 4 to evaluate the financial position of the cornpany. This information can be found by locating the annual report on the company website, or by looking up the company on Yahoo Finance. However, the information must be cakulated manually and all work must be shown. The following information is needed:
1. Introduce the class to the company. What is the full name? Place of business? Sector and Industry? Major competitors?
2. Include at least 5 finanoal ratios (one from each category in the textbook) for each year of the previous 3 years. Explain how these ratios have changed (use charts or graphs) over the period.
3. Calculate the Free-Cash-Flow for the company for the previous 3 years. Be sure to include how you arrived at each number.
4. Compute the DuPont equation for the company and two of the cornpany's major cornpetrtors. Compare your results and explain.
5. Explain the findings of the financial report. What is the trend over the past 3 years? Has the company had any major changes, events, opportunities, or threats that may explain the increase/decrease in financial pos.ons?
The report will need to be printed and turned in before class. Please use an appropriate font, site 12, 1- inch rnargins. The report should be well-written and clear. Please do not provide the actual annual reports, just the analysis of the five items above. lf you use any resources (YahooFinance, news reports, etc.) please include a works cit. or references page (this does not count toward the 2-4 page requirement).