Ratios HW

Obtain the company’s most recent financial statements. 

o They can be found at: 

 http://www.sec.gov/edgar/searchedgar/companysearch.html 

 Look for the Form 10-K 

 The Investor Relations section of the company’s 

website 

 Look for SEC filings, or Annual Reports 

o Be sure to use the audited financial statements for the 

consolidated company – many Annual Reports include 

highlights and separate statements for divisions. 

 Calculate the following key financial performance measures for 

the two most recent years available. 

o Profit margin 

o Asset turnover 

o Return on assets 

o Debt to equity ratio 

o Cash flow yield 

o Free cash flow 

 State whether ratios are improving or worsening. Note if any 

ratios are different from what you expected to find, or how they 

compare to the examples in the book.  

2 

 Please also show the components of the ratios you have calculated. 

For example, for the debt to equity ratio include the amounts of 

Total Liabilities and Stockholders’ Equity 

 Feel free to use other sources of information to assist you in your 

calculations, but be sure you can trace your ratios and their 

components back to the financial statements. 

 Be ready to answer questions about your work 

 Email me your group and company choice by January 28. 

 The project is due February 4 and may be turned in to me in class, 

or emailed to me by the beginning of class. In your submission, 

please include: 

o the financial statements of the company analyzed (relevant 

excerpts only, please) 

o the ratios listed above 

o your analysis of the ratio 

o the components of each ratio