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- Download the last two quarterly or annual balance sheet and income statements (Form 10-Q or 10-K) from sec.govLinks to an external site. of any public industrial (not financial) firms. Go to SEARCH FOR COMPANY FILINGS. Do not print everything in the annual report or Form 10-Q or Form 10-K. Do not use the financial information from any other source.
- [5 pts] Provide a paragraph or so introducing the firm.
- [10 pts] Calculate the dollar change and percentage change for the years presented in the financial statements you have from step 1. Put them in Excel and do calculations from there.
- [20 pts] Calculate all the ratios you have studied in your textbook for each quarter or year in the financial statements you have from step 1. The ratios should be grouped in the categories per your textbook.
- [10 pts] Calculate all the corresponding ratios for the industry in which the firm operates. You may want to take advantage of the Bloomberg terminals on campus for this step.
- [20 pts] Analyze each ratio just computed independently, explaining what each number means. In doing so, state (1) whether the particular ratios improve or deteriorate from one quarter or year to the next and (2) whether the firm performs better or worse than the industry by comparing the firm’s ratios with the industry ratios. Be careful that “higher” may not always mean “better” for some ratios.
- [10 pts] Combining the meaning of all the ratios and calculations above, provide an overall picture of the financial strengths and weaknesses of the firm.
- [5 pts] Based on steps 6 and 7, make recommendations on what the fir
