Financial Statement Analysis for cisco Systems annual reports

1. Compute the ratios for fiscal 2018 and 2019.

• Price/Earnings Ratio
• Current Ratio
• Receivable Turnover Ratio
• Working Capital
• Return on assets
  • Financial Leverage Ratio
  • Quick Ratio
  • Total Assets Turnover Ratio
• Net Profit Margin
• Inventory Turnover Ratio
• Primary (Basic) earnings per share
• Return on equity

2. Select a major competitor of the company from the same industry. Download its annual report from www.sec.gov. Compute the above financial ratios.

3. From the annual reports of the firm of interest and its competitor, find out the following information for each firm (if it is disclosed).

1. The amount of bad debt expense and the amount of bad debts written off for the most recent fiscal year;
2. Inventory costing method for the most recent fiscal year;
3. Depreciation method for the most recent fiscal year;
4. Did the company issue bond in the most recent year? If yes, how much did they raise from issuing bond? Did the company have bonds outstanding?
5. Did the company issue stocks in the most recent year? If yes, how much did they raise from issuing stock?

4. Include the above analysis in Part VI in Appendix F of your report.

5. Write a short report (no more than 3 pages long). In the report, you should analyze the common size and trend balance sheets and income statements and the charts prepared in Parts II and III and the cash flow data from Part IV. Interpret the financial ratios you compute for the company of interest relative to its peer and to its past performance. State clearly which company you would recommend to an investor and the rationale for your recommendation. Include the tables and charts from Parts I-VI as appendices.