Corporate Fin Assignment

FIN51

0

—

Week

3

Signature Assignment

:

Financial Statement

Analysis

© 2018

DeVry Educa

tional Development Corp. All rights reserved.

The copyrights in these materials are owned by DeVry Educational Development Corp. and other copyright owners as indicated

herein. No part of these works may be reproduced or used, distributed, published, displ

ayed, transmitted in any form or by any

means

–

graphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval

systems

–

without the prior written consent of DeVry Educational Development Corp.

or the respective copyright owner.

Page |

1

As the new financial manager of your company

, the CEO has asked you

r

team

to

provide a brief analysis of the company’s performance to present at the

upcoming

b

oard of

directors meeting

.

The CEO has asked that you assess the

company’s performance against y

our company’

s industry. Thus, to do this, you

will need to u

se ratio analysis or other techniques to determine areas in which

the company is doing well

,

as well as areas that management should look at.

Here are the steps for the project:

1.

Go to the website for your company

(COSTCO)

and download the 10

-

K report for the

most recent year.

2.

Use

t

Costco.com

then Investor Relations, then SEC filings, then Annual Filings, then

select

10

-

k.

That’s the

most recent

report filed with the SEC.

Fol

low the link

s

.

http://phx.corporate

-

ir.net/phoenix.zhtml?c=83830&p=irol

-

sec

3.

Perform your ratio analysis on your company:

a.

A g

ood place to start would be to

perform a complete DuPont analysis

of

the co

mpany.

The DuPont analysis might provide guidance as to what

particular areas of the company should be examined next and what ratios

should be calculated.

Be sure to include ratios

that cover the following areas:

i.

Profitability

ii.

Debt Management

iii.

Liquidity

iv.

Asset Management

v.

Market Value

b.

In addition to the DuPont

a

nalysis ratios, be sure to present and discuss at

least

eight

relevant ratios

including the above

that you

feel

s may best

assess the com

pany’s performance

.

c.

Prepare the same ratios that you

prepared above, but this time for the

prior

year.

d.

Provide an analysis that compares your company’s

current year ratios to its

prior year ratios

.

There is no need to explain the purpose of the rat

ios.

Rather,

be sure to provide an interpretation of the results

. This may entail

some research from news sources on the company’s recent performance.

FIN510—Week 3 Signature Assignment:

Financial Statement Analysis

© 2018 DeVry Educational Development Corp. All rights reserved.

The copyrights in these materials are owned by DeVry Educational Development Corp. and other copyright owners as indicated

herein. No part of these works may be reproduced or used, distributed, published, displayed, transmitted in any form or by any

means – graphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval

systems – without the prior written consent of DeVry Educational Development Corp. or the respective copyright owner.

Page | 1

As the new financial manager of your company, the CEO has asked your team

to provide a brief analysis of the company’s performance to present at the

upcoming board of directors meeting. The CEO has asked that you assess the

company’s performance against your company’s industry. Thus, to do this, you

will need to use ratio analysis or other techniques to determine areas in which

the company is doing well, as well as areas that management should look at.

Here are the steps for the project:

1. Go to the website for your company (COSTCO) and download the 10-K report for the

most recent year.

2. Use t Costco.com then Investor Relations, then SEC filings, then Annual Filings, then select

10-k. That’s the most recent report filed with the SEC. Follow the links.

http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-sec

3. Perform your ratio analysis on your company:

a. A good place to start would be to perform a complete DuPont analysis of

the company. The DuPont analysis might provide guidance as to what

particular areas of the company should be examined next and what ratios

should be calculated. Be sure to include ratios that cover the following areas:

i. Profitability

ii. Debt Management

iii. Liquidity

iv. Asset Management

v. Market Value

b. In addition to the DuPont analysis ratios, be sure to present and discuss at

least eight relevant ratios including the above that you feels may best

assess the company’s performance.

c. Prepare the same ratios that you prepared above, but this time for the prior

year.

d. Provide an analysis that compares your company’s current year ratios to its

prior year ratios. There is no need to explain the purpose of the ratios.

Rather, be sure to provide an interpretation of the results. This may entail

some research from news sources on the company’s recent performance.