Explain what trends do you see developing in the data

Reference no: EM131523588

Assignment: PRINCIPLES OF BUSINESS FINANCE LAB

Goals for this assignment:

- Gather financial statements
- Calculate financial ratios

Collect financial statements.

Financial statements are available on the internet through at the yahoo finance website. At this website you will put the ticker symbol for your company in the symbol box and press "go". At this point you will see a page that has financial information about your company. On the left-hand side of the screen there will be a series of options that you can choose to get more information about your company. Under the heading "financial statements" you will see an option for "income statement" and "balance sheet." You want annual statements. The financial statements for the past 3 years should be available. (Depending on the fiscal year for your company, these might be until 2016 or 2017.)

Calculate the DuPont decomposition.

Calculate the DuPont Decomposition for each of the three years for your company. The DuPont Decomposition is composed of

ROE = NI/Equity = NI/Sales *Sales/Assets * Assets/Equity

Therefore, you should have a total of twelve calculations (four ratios for each of the three years).

Determine liquidity.

Determine the company's liquidity by calculating the current ratio, the quick ratio, and the cash ratio for each of the three years. This should be a total of nine calculations.

Present these ratios in the following format

	NI/Equity	NI/Sales	Sales/Assets	Assets/Equity	Current Ratio	Quick Ratio	Cash Ratio
2015
2016
2017

Make observations.

Write a paragraph in which you describe what you observe about the financial ratios for your company. These observations will vary greatly depending upon the company you are analyzing. Some things you may want to consider are:

• Has the company drastically increased or decreased its use of debt?
• Has the company's liquidity position changed over the three years?
• Has ROE been rising or falling? If so, what has contributed to this change?
• What trends do you see developing in the data?
• Do you see any major changes in the financial status of the company over the time period?

Looking Forward

This will be part of your company analysis that you will complete later this semester. Be sure to keep your electronic files so that you do not have to recreate the work that you have done.

Reference no: EM131523588

Questions Cloud

Create an appropriate greeting and closing for each email : Revise the two (2) emails below to remove problematic content and help these students construct polite, effective email messages instead

George faces challenges : George, the new department supervisor, wondered if he couldn't have spent his retirement from the Navy in a more relaxed atmosphere.

What are the implications for building a requisite model : Lynn Rasmussen is deciding what sports car to purchase. In reflecting about the situation, it becomes obvious that after a few years Lynn may elect to trade.

Ultra petroleum has earnings per share : Ultra Petroleum (UPL) has earnings per share of $1.57 and a P/E ratio of 32.96. What’s the stock price?

Explain what trends do you see developing in the data : What trends do you see developing in the data? Do you see any major changes in the financial status of the company over the time period?

What are the four decision elements of vijay decision : Vijay is feeling much better these days. A year ago he took a big risk and opened a cafeteria style restaurant next to a major university.

Influence beta of corporation to yield leveraged beta : Discuss how beta of a corporation is assessed by analysts. Discuss how leverage can influence beta of corporation to yield leveraged beta.

Briefly describe the function of the joint commission : Briefly describe the function of the Joint Commission. How does it measure and ensure quality in an organization?

Determine which alternative is less costly : Determine which alternative is less costly, based upon comparison of after-tax annual worth.

User Account

All Pages