FIN 4596

Factset Research Assignment

1. Part 1: Industry analysis:

Part a. Using the two industries you are assigned:

i. Log into Factset (Click the following link to receive your Academic login

https://advantage.factset.com/academic_idrequest if you have not got

one).

ii. Download each of the following sections for each industry:

1. Profitability (Ratio Analysis)

2. Growth (Key Items)

3. Valuation (Ratio Analysis)

4. Debt coverage (Ratio Analysis)

5. Leverage (Ratio Analysis)

iii) In a new workbook (name it as Factset Assignment), pull all of the section

data for each industry into a separate tab. Rename each tab by the industry,

e.g. Homebuilders, etc.

Part b. Compare industry performance for the last 5 years. Your download will have 10 years of data; delete the first 5 years of data.

i. Identify significant industry differences for the public firms:

1. Range of size (minimum, maximum, median)

2. Trends in revenue, EBITDA, and net income growth

ii. Using a DuPont analysis framework explain:

1. Why ROE increased or decreased during the past 5 years for each

industry

2. Why ROE differs in the most recent year between industries

iii. Valuation multiples:

1. Trend in the P/E and EV/EBITDA for each industry during the past 5

years

2. Explain the differences in the trends, if any.

Part c. Write your industry comparison answers for section (b) in a Word document and then copy and “paste special” as a WORD file into first industry tab of your “Factset Assignment” workbook.

2. Part 2: Company Analysis

a. Pick one company from each industry. Download the Dupont Analysis for both

companies into one tab labeled Company Analysis using fiscal years.

b. Using the most recent fiscal year (again, you will have 10 years of data), identify the most important drivers of differences in ROA and ROE. To successfully address this question, you must identify other measures of financial performance that drive the DuPont analysis, e.g. gross profit margin, working capital turnover.

c. Like 1(c) above, write your company comparison in a Word document and copy and paste into the Company Analysis tab.

Deliverables:

1. Excel workbook titled “Factset Assignment,” containing three tabs.

a. The first tab contains the first industry data and your response to the analysis

outlined in 1. b.

b. The second tabs include the data for the second industry.

c. The third and last tab, named “Company Analysis,” contains Part 2 in an organized manner.