Analyze of financial statement

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Work in groups of 4 to 5 students no more nor less to Put together a financial analysis in a report format not in a PowerPoint format for the company that your agreed upon with your instructor
Every group should have different companies to analyze
The report should include two years of ratio calculations, statements as shown on the slides and the analyses part for those two years
All the information should be gathered from yahoo.finance and/or www.investing.com

FIN 201- Project

Analysis of Financial Statements

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1. Apple Inc.
2. Amazon.com, Inc.
3. Microsoft Corporation
4. Ford Motor Company
6. Toshiba Corporation
7. Hyundai Motor Company
8. Samsung Electronics Co.
9. Royal Dutch Shell plc.
10. Facebook, Inc.

11. Alphabet Inc.
12. Alibaba Group
13. Johnson and Johnson
14. ExxonMobil
15. Procter and Gamble Co.

16. Intel

17. Oracle Corporation

18. Canon Inc.

19. HP Inc.

20. The Walt Disney Company

Important Notice: Group members have to

get back to their instructor to get approval

for their chosen companies

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Names: ___________ ID:__________
Names: ___________ ID:__________
Names: ___________ ID:__________
Names: ___________ ID:__________
Company Name:

D’Leon Co.

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Balance Sheet: Assets

2002E

2001

Cash

85,632

7,282

878,000

632,160

Inventories

1,716,480

1,287,360

Total CA

2,680,112

1,926,802

Gross FA

1,197,160

1,202,950

Less: Deprec.

380,120

263,160

Net FA

817,040

939,790

Total assets

3,497,152

2,866,592

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Liabilities and Equity

2002E

2001

Accounts payable

436,800

524,160

Notes payable

300,000

636,808

Accruals

408,000

489,600

Total CL

1,144,800

1,650,568

Long-term debt

400,000

723,432

Common stock

1,721,176

460,000

Retained earnings

231,176

32,592

Total equity

1,952,352

492,592

Total L & E

3,497,152

2,866,592

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Income Statement

Sales

7,035,600

6,034,000

COGS

5,875,992

5,528,000

Other expenses

550,000

519,988

EBITDA

609,608

(13,988)

Depreciation

116,960

EBIT

492,648

(130,948)

Interest exp.

70,008

136,012

EBT

422,640

(266,960)

Taxes (40%)

169,056

(106,784)

Net income

253,584

(160,176)

2002E

2001

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Other Data

2002E

2001

Shares out.

250,000

100,000

EPS

$1.014

($1.602)

Stock price

$12.17

$2.25

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Information about the company
Why are ratios useful?

Write and introduction for your report
and include

Introduction

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Liquidity Ratios: Calculate 2 years for each ratio

CR02 = = = 2.34x.

QR02 =

= = 0.84x.

$2,680

$1,145

$2,680 – $1,716

$1,145

CA - Inv.

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Analysis:

Analyzing results for CR and QR

2002 2001 2000

CR 2.34x 1.2x 2.3x

QR 0.84x 0.4x 0.8x

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Asset management Ratios: Calculate 2 years for each ratio

Sales

Inventories

Inv. turnover =

= = 4.10x.

$7,036

$1,716

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Analyzing results for Inventory Turnover

Analysis:

2002 2001 2000 Ind.

Inv. T. 4.1x 4.7x 4.8x 6.1x

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Receivables

Average sales per day

DSO =

= = = 45.6.

DSO- Days Sales Outstanding:

Receivables

Sales/365

$878

$7,036/365

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Analyzing results for DSO

2002 2001 2000 Ind.

DSO 45.6 38.2 37.4 32.0

Analysis:

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F.A. and T.A. Turnover:

Fixed assets

turnover

Sales

Net fixed assets

= = 8.61x.

$7,036

$817

Total assets

turnover

Sales

Total assets

= = 2.01x.

$7,036

$3,497

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2002 2001 2000 Ind.

FA TO 8.6x 6.4x 10.0x 7.0x

TA TO 2.0x 2.1x 2.3x 2.6x

Analyzing results for F.A. and T.A. Turnover

Analysis:

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Debt management Ratios:

Calculate 2 years for each ratio

Total debt

Total assets

Debt ratio =

= = 44.2%.

$1,145 + $400

$3,497

EBIT

Int. expense

TIE =

= = 7.0x.

$492.6

$70

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Analyzing results for D/A and TIE

2002 2001 2000 Ind.

D/A 44.2% 82.8% 54.8% 50.0%

TIE 7.0x -1.0x 4.3x 6.2x

Analysis:

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2002 2001 2000 Ind.

P.M. 3.6% -2.7% 2.6% 3.5%

Profitability Ratios: Calculate 2 years for each ratio

Analysis:

P.M. = = = 3.6%.

Sales

$253.6

$7,036

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Analyzing results for Return on Assets and Return on Equity

ROA =

= = 7.3%.

Net income

Total assets

$253.6

$3,497

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ROE =

= = 13.0%.

Net income

Common equity

$253.6

$1,952

2002 2001 2000 Ind.

ROA 7.3% -5.6% 6.0% 9.1%

ROE 13.0% -32.5% 13.3% 18.2%

Analysis:

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Price per share

Earning per share

P/E =

= = 8.21x.

$12.17

$1.48

Market value Ratios: Calculate 2 years for each ratio

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Com. equity

Shares out.

BVPS =

= = $7.81.

$1,952

250

Mkt. price per share

Book value per share

M/B =

= = 1.56x.

$12.17

$7.81

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2002 2001 2000 Ind.

P/E 12.0x -1.4x 9.7x 14.2x

M/B 1.56x 0.5x 1.3x 2.4x

Analysis:

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Profit

margin

turnover

Equity

multiplier

Sales

2000 2.6% x 2.3 x 2.2 = 13.3%

2001 -2.7% x 2.1 x 5.8 = -32.5%

2002 3.6% x 2.0 x 1.8 = 13.0%

Ind. 3.5% x 2.6 x 2.0 = 18.2%

( )( )( ) = ROE

x x = ROE.

The Du Pont system

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Analysis:

Analyzing results for: The Du Pont

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Write a conclusion about the company and how will is it doing depending on your results.

Conclusion