The class should be divided into teams. Teams are to select an industry (such as automobile manufacturing, airlines, defense contractors), and each team member is to select a different company in that industry. Each team member is to acquire the annual report of the company selected. Annual reports can be downloaded from company Websites or from the SEC’s EDGAR database (www.SEC.gov).

Required 

1. Use the annual report to compute the profit margin.

2. Communicate with team members via a meeting, e-mail, or telephone to discuss the meaning of the ratios, how different companies compare to each other, and the industry norm. The team must prepare a single memo reporting the ratio for each company and identifying the conclusions or consensus of opinion reached during the team’s discussion. The memo is to be copied and distributed to the instructor and all classmates.