Obtain the company’s most recent financial statements.
o They can be found at:
http://www.sec.gov/edgar/searchedgar/companysearch.html
Look for the Form 10-K
The Investor Relations section of the company’s
website
Look for SEC filings, or Annual Reports
o Be sure to use the audited financial statements for the
consolidated company – many Annual Reports include
highlights and separate statements for divisions.
Calculate the following key financial performance measures for
the two most recent years available.
o Profit margin
o Asset turnover
o Return on assets
o Debt to equity ratio
o Cash flow yield
o Free cash flow
State whether ratios are improving or worsening. Note if any
ratios are different from what you expected to find, or how they
compare to the examples in the book.
2
Please also show the components of the ratios you have calculated.
For example, for the debt to equity ratio include the amounts of
Total Liabilities and Stockholders’ Equity
Feel free to use other sources of information to assist you in your
calculations, but be sure you can trace your ratios and their
components back to the financial statements.
Be ready to answer questions about your work
Email me your group and company choice by January 28.
The project is due February 4 and may be turned in to me in class,
or emailed to me by the beginning of class. In your submission,
please include:
o the financial statements of the company analyzed (relevant
excerpts only, please)
o the ratios listed above
o your analysis of the ratio
o the components of each ratio