Financial Analysis Case Part $2$

In this part of the case you gather information to be used in the written analysis by completing $3$ sheets in the financial analysis template you began in Part $1$:

$$ Part $2$ Common Size Financials

$$ Part $2$ Ratios

$$ Part $2$ Industry Analy

Common Size Financials

Enter formulas in the yellow cells to create common size financial statements from the condensed statements you created in Part $1.$ Be sure to use formulas! You will lose up to $40\%$ credit if you do not use formulas. See the example for Apple on Blackboard!

Ratios

Enter formulas in the yellow cells to calculate the ratios from the condensed statements you created in Part $1.$ You will lose up to $40\%$ credit if you do not use formulas. The formulas need to refer back to the numbers in the condensed Financial Statements. See the example for Apple on Blackboard!

For the DuPont Analysis section at the bottom, reference the ratios you calculated in this sheet.

Industry and Competitor Analysis

In this section you will gather publicly available ratios from https:$//$www$.$investing.com$/$ These cannot be compared directly to the ratios you calculated for several reasons:

$$ Investing.com may calculate the ratios a bit differently than we did $($there are multiple ways to calculate these ratios$).$

$$ Investing.com is calculating the ratios based on the most recent data. The ratios you calculated are based on an annual report. These ratios include data from the most recent quarter. Some ratios, like the P$/$E ratio change constantly as the market price of the stock changes.

It is very important that you enter the date you gathered the ratios in the appropriate yellow cell for reference. This date must be referred to in your written analysis.

Go to https:$//$www$.$investing.com$/.$ Type the company$$s ticker symbol into the Search box at the top of the page and press enter. A list of companies will come up$.$ Select the company from the list. The ticker symbol for Badger Meter is BMI and for Kohl$$s it is KSS$.$

Explore the site and review the stock chart and other information! To gather ratios, hover over the Financials link, then choose ratios. $,$ Here you will find ratios for your company and its industry. Enter those into the Industry Analy sheet in the template.

Hint: if you can$$t find the Dividend Yield on the Ratios section, look under the General tab.

Either print the ratios to a PDF file or cut and paste the ratio information from investing.com into a word file. Submit the pdf or word file containing your company$$s ratios along with your template. Name the file xxxxx$-$company$\_$stock$\_$symbol$\_$dateobtained. For example, if your company is WalMart, your name is John Doe, and you obtained the ratios on October $5$th$,2017,$ your file name is DoeJ$\_$WMT$\_100517.$

You will also find and enter information for a competitor. In your written report you will explore similarities and differences between the companies.

$$ For Badger Meter, Inc. $($BMI$)$ use Mueller Water Products $($MWA$)$ as the competitor.

$$ For Kohl$$s $($KSS$)$ use Macy$$s $($M$)$ as the competitor.

Enter the ticker symbol in the Search Stocks box, then look up the ratios under the Financials tab. In the worksheet, enter the name of the competitor you have chosen in the yellow cell at the top of the column, and then fill in the ratios below.

Either print the ratios to a PDF file or cut and paste the ratio information from investing.com into a word file. Submit the pdf or word file containing the competitor$$s ratios along with your template. Name the file xxxxx$-$competitor$\_$stock$\_$symbol$\_$dateobtained. For example, if your competitor was Target, your name is John Doe, and you obtained the ratios on October $5$th$,2019,$ your file name is DoeJ$\_$TGT$\_100519.$

In each sheet there is a spot for comments. You may make comments if you wish as you notice items about the data $($for example, Interest Expense has increased significantly as a $\%$ of sales, or the current ratio is much greater than the industry$).$ However, comments are not required.

Save the workbook and submit it with the pdfs or word docs you created under Financial Analysis Case Part $2.$

Company is Badger Meter all financial info is found on the $2022$ annual report