Preparing a project presentation about Apple Company

PROJECT 1 GUIDELINES

Analysis of Financial Statements

Principles of Financial Management (BFIN 3321)

Your Project document (PowerPoint) should include:

1. Introduction (2 slides)

This part should be a short description of the company you are going to analyze. You can mention

the objective of the company, the industry, latest news and a brief history. The introduction should

be no longer than two slides.

2. Common size financial statements (2-3 slides)

Write a short summary of the three main financial statements: Balance sheet, Income

Statement and Cash Flow Statement for the last two years. You should include common size

balance sheet and income statement. Focus on performance of net income, dividend payments,

asset size, shares outstanding and the market price of the share.

3. Ratio (Trend) Analysis (5 slides)

This ratio analysis should include just a Trend analysis. It requires calculating the ratios

mentioned below for your company and compare the most current annual statements with the

ones of one and two years ago (trend analysis). For this analysis, you should define (briefly)

and calculate the following ratios:

Liquidity Ratios: Explain liquidity ratios, why they are important and what they mean.

Calculate and compare the Current Ratio and the Quick Ratio and discuss implications for your

company.

Efficiency Ratios: Explain asset management ratios, why they are important and what

they mean. Calculate and compare the Inventory Turnover, the Day Sales Outstanding and the

Total Asset Turnover Ratio and discuss implications for your company in comparison to itself.

Leverage Ratios: Explain debt management ratios, why they are important and what they

mean. Calculate and compare the Total Debt to Total Assets Ratio and the EBITDA Coverage

Ratio and discuss implications for your company in comparison to itself.

Profitability Ratios: Explain profitability ratios, why they are important and what they

mean. Calculate and compare the Profit Margin on Sales, Return on Total Assets and the

Return on Equity and discuss implications for your company in comparison to itself.

Market Value Ratios: Explain market value ratios, why they are important and what they

mean. Calculate and compare the Price/Earnings Ratio and the Market/Book Ratio and discuss

implications for your company in comparison to itself.

4. Conclusion (one slide)

General conclusions about the company. Do you think it is performing at optimum? Does

this company improve their situation during last two years? Is it ahead of its

competitor/industry? What changes would you recommend?

5. Appendix and Bibliography (3-4 slides)

The appendix should be a copy of the financial statements of your company: the income

statements, the balance sheets and the cash flow statements for the two most recent years.

Bibliography should have a standardized format (You should include all other sources that

you use in addition to your textbook. It is strongly recommended to have at least three

sources to complement).

Your PowerPoint should include:

2 slides. Introduction

2-3 slide. Common Size Financial Statements summary

5 slides. Ratio Analysis summary

1 slide. Conclusions (VERY IMPORTANT)

1 slide. Bibliography.

Total: 11-12 slides.

Notes:

 I would recommend referring material outside of your textbook (library, Internet, etc.) in

order to explain your conclusions.

 Number all your pages from the introduction onward.

 You have to get your Financial Statements from the Database “MERGENT Online”. (You

can find it on the UIW Library website).

 For your presentation you have to consider among 6-8 minutes. No less, no more. It is very

important to talk more about group’s conclusion and less about history of the company.

 For your presentation, I strongly recommend to practice before and double check every

slide.