Annual Report Project

An Analysis of a Publicly Traded Company

Company Name: ____Archer Daniels Midland____________ Date: _______________

Instructions

Each student has been assigned a publicly traded company to analyze.

The project is to be submitted at the beginning of the class session, by the date shown below, in a suitable binder appropriately sectionalized.

All analysis and write-ups must be typewritten and be professional in content, appearance and presentation. Shoddy work, poor format, short cuts, poor use of decimal places, etc. will only lessen the grade. Questions should not be answered with a simple yes or no answer. Also keep in mind that the names of the financial statements and accounts appearing below may not necessarily be the same as the names in the statements appearing in your annual report.

Submittal of the final project must also include this form and any and all references used.

Any report not handed in by the beginning of class on the due date shown below will NOT be accepted thereafter and will be assigned a grade of ZERO.

Final Submittal date: _______________ (Please note that your instructor will not answer

any questions or provide any help related to this project beginning 2 weeks before its due)

Part I General (Provide the following):

Company Information

a.Name of the company.

b.Location of the companys headquarters.

c.State in which the company is incorporated.

d.Profile of the company (in your own words, without copying and pasting).

e.Sector the company is in.

f.Industry the company is in.

g.Identify at least three major competitors.

h.Identify whether or not the company has international operations.

Common Stock Information

i.Identify the companys common stock symbol and the national exchange it is traded on.

j.Identify the current market price and date of the companys common stock.

k.Identify the par value for the companys common stock. How does the par value compare to the market value? Does par value have any relation to market value?

l.Provide the 52 week high and low value for the common stock.

m.Identify the current dividends on common stock, if any (by quarterly and annual amounts and %.

n.Define what each of the following terms mean: Authorized Shares, Shares Issued, Shares Outstanding, and Treasury Shares. For the common stock only, show the amounts, as applicable.

Preferred Stock

o.Does your company have any preferred stock? If yes,

1.What is its par value

Part II Financial

Ratio Analysis:

2.In a single paragraph discuss the purpose of Ratio Analysis, including a discussion on the limitations associated with ratio analysis.

3.Provide the most recent values for the ratios shown below for the latest two years (you will need at least three years of data). Prepare a summary table, as shown on the next page, containing all of the ratios. Show your calculations for each ratio in an appendix at the end of your report. For each ratio, indicate if the ratio has improved or deteriorated from the earlier year to the later year.

4.Before calculating the ratios, describe what each ratio is for.

5.At the end of the table, provide a discussion and conclusion regarding the ratio analysis performed

Ratios:

Liquidity Ratios:

a.Current ratio

b.Acid Test (Quick) ratio

c.Receivables Turnover

d.Days in Receivables

e.Inventory Turnover

f.Days in Inventory

Profitability Ratios:

g.Profit Margin

h.Asset Turnover

i.Return on Assets

j.Return on Common Stockholders Equity

k.Earnings per Share (EPS)

l.Price to Earnings ratio

m.Payout ratio

n.PEG (you are on your own on this one)

Solvency Ratios:

o.Debt to Total Assets ratio

p.Times Interest Earned ratio

Cash Flow

q.Free cash flow (associated with the statement of cash flow)

Results of Ratio Analysis

(Sample form for performing Ratio Analysis)

Ratio		Calculated Company Values	Calculated Company Values	Evaluation of Change in Ratio
Type	Name	Yr. _______	Yr. _______	Improved/Deteriorated

Horizontal Analysis:

In a single paragraph discuss the purpose of Horizontal Analysis.

In Tabular form, calculate changes from one year to the next for certain accounts on the Income Statement using the earliest year as the base year, and indicate what the change means, whether it improved or deteriorated. Perform this analysis for Sales, COGS, Gross Profit, Operating Profit, and Net Profit. The use of an Excel spreadsheet is suggested, to enable the student to improve his Excel skills in this area.

Provide a summary discussion and conclusions regarding the horizontal analysis performed

Horizontal Analysis

(Sample form for performing Horizontal Analysis)

Account Name	Latest Year Nominal Value	Earliest Year Nominal Value		Nominal Change From Earliest to Latest Year	Percent Change From Earliest to Latest Year	Improved/Deteriorated

Vertical Analysis (Common Sizing):

In a single paragraph discuss the purpose of Vertical Analysis.

In Tabular form, common size each account on the Income Statement, for the two latest years, using the appropriate base. Indicate what the changes mean, whether it improved or deteriorated. The use of an Excel spreadsheet is suggested, to enable the student to improve his Excel skills in this area.

Provide a summary discussion of your findings with respect to Sales, COGS, Gross Profit, Operating Profit, and Net Profit.

Vertical Analysis

(Sample form for performing Vertical Analysis)

Account Name	Year 1 Nominal Value	Year 1 Common Size Value		Year 2 Nominal Value	Year 2 Common Size Value	Improved/Deteriorated

Part I I I All references supporting above analysis, properly organized.

Income Statement: https://finance.yahoo.com/quote/ADM/financials?p=ADM

Balance Sheet: https://finance.yahoo.com/quote/ADM/financials?p=ADM

Statistics: https://finance.yahoo.com/quote/ADM/key-statistics?p=ADM

Profile: https://finance.yahoo.com/quote/ADM/profile?p=ADM