AIRBUS COMPANY

Project Description

Each student, will be required to analyze financial statements (BS, IS, CFS) and report on their findings. The statements will be for three consecutive years for a corporation or organization you are interested in learning more about. Analysis of NPO organizations and/or a family business may be considered. (Make sure you can get copies of the Financial Statements (BS, IS, CFS)). Financial statements for publicly traded companies can be found online.

The report should contain the following four sections:

1. Company Overview (No more than a half to 1 page long)

A brief introduction to the company, including an overview of the history, product lines, and other information related to company. Include any information that will help understand the business.

2. Financial Ratio Analysis (Information Required)

Calculate ratios and trends for the 3 years being reviewed for analysis and comparison.

For each ratio and trend, include an explanation of its general meaning/significance.

For each ratio and trend, indicate what the results imply for your corporation.

Include the formula for each ratio.

Ratio Project/Paper Required Sections for each Ratio

1. Ratio Name
   1. Generic Meaning
   2. Formula for the Ratio
   3. Specific Ratio for 3 Years
   4. Interpretation of the Ratio
2. Example: Current Ratio
   1. Generic Meaning: This ratio measures the short-term debt-paying ability of the company. A higher current ratio suggests a strong liquidity position.
   2. Current Assets/Current Liabilities.
   3. Specific Ratios
      1. 2019: 500/200 = 2.5
      2. 2020: 600/225 = 2.67
      3. 2021: 550/250 = 2.2
   4. ABC company has the ability to pay their current debt.

The following ratios, trends, and analysis are required:

1. Trend analysis for Balance Sheets
2. Trend analysis for Income Statements
3. Common-size analysis for Balance Sheets
4. Common-size analysis for Income Statements
5. Working capital
6. Current ratio
7. Acid-test ratio or Quick ratio
8. Accounts receivable turnover
9. Days sales uncollected
10. Inventory turnover
11. Payables turnover
12. Days payable
13. Days sales in inventory
14. Total asset turnover
15. Debt to equity ratio
16. Profit margin ratio
17. Gross margin ratio
18. Return on total assets

Not all ratios are appropriate in all businesses.

Do not skip a ratio but if a ratio cannot be calculated, you must include an explanation of why the ratio may not apply or be relevant to your company.

3. Summary / Conclusion (No more than a half to 1 page long)

Summarize your analysis and conclusion based on the performance and analysis of the company, indicating relative strengths and weaknesses. The analysis should include a comparison with industry norms, an equivalent competitor, general economic conditions, or industry data.

4. Financial Reports

If you changed company, you need to include them in with the final Ratio Project.

If you did not send me the Financial Statements at the prior due date, send with the final papet.

Include the income statement, balance sheet, and statement of cash flows for each of the years being analyzed.

For NPO organizations include the Statement of Activities.

Online printouts of financial statements are acceptable.

Do not just send a link to the financial statements but include the statements.

Grading

If a due date is missed for the Project Name or Project Financial Statements will receive zero (0) points for that part of the assignment.

Due dates are listed in the course syllabus.

Late final projects will have 10% deducted from the final project grade for every day late.

After three (3) days late, you will earn a grade of zero (0).

Project Company Name 02 points (Company Name & Team Members)

Project Financial Statements 03 points (BS, IS, CFS)

Project Final 95 points (3 Years of Ratio Analysis)

Total 100 Points