| Profitabilty Ratios | Points |
| 1. Calculate the Gross Profit rate for 2015, 2016 and 2017? What trend do you see and what does it mean? | 4 |
| 2. Calculate the Profit Margin rate for 2015, 2016, and 2017? What trend do you see? How does it compare to Gross Profit rate over the years? | 4 |
| 3. What segments (locations) make up total revenues? Which ones are growing in sales, which are declining? (see Notes to Financial Stmts – Business Segment Data) | 2 |
| 4. Calculate the Return on Assets and Return on Equity (Common stock) for 2017. What do the rates tell about company’s returns? | 4 |
| 5. Calculate the Earnings Per Share for 2016 and 2017. How do the two years compare? | 3 |
| Liquidity Ratios |
| 6. Calculate the Current Ratio for 2016 & 2017. What does it indicate and what trend do you see? | 4 |
| 7. Calculate the Inventory Turnover and Days Sale in Inventory for 2017. What do they tell about Inventory management? | 4 |
| 8. Which method of Inventory and Cost of Goods Sold valuing does the company use? (FIFO, LIFO or Average) (see Notes to Financial Stmts – Accounting policies)? How does used the method effect the Net Income compared to other methods? | 2 |
| 9. Calculate Accounts Receivable Turnover and Collection days for 2017. What does it tell about company’s collections? | 4 |
| 10. How much was Allowance for Doubtful Accounts for 2017? | 2 |
| How does the company estimate allowances for Bad Debt? |
| Solvency Ratios |
| 11. Calculate the Debt to Asset ratio for 2016 and 2017. What does it tell about the long term survival of the company? | 4 |
| 12. What is the company’s percentage of PPE (Plant Assets) against total assets? What method of depreciation does the company use? (see Accounting Policies) | 3 |
| 13. Did the company purchase Treasury shares in 2017? If yes, how much and how many shares? | 2 |
| 14. Did the company issue Dividends in 2017? If yes, for how much? | 2 |
| 15. Calculate the Free Cash Flow ratio for 2017. What does it indicate? | 3 |
| 16. How would you interpret the company’s cash flows from Operating, Financing, and Investing sections | 3 |
| Total Points | 50 |
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analysis_project_rubric.xlsx
