1. Income statement: examine the last 3 (common size) annual Income Statements of xiaomi on bloomberg. How do expenses affect Net Income? (consider cost of goods sold, selling & general expenses, depreciation, interest, taxes). Compare the income statements from last 3 years and make at least 5 observations.
2. Balance sheet: examine the last 3 (common size) annual Balance Sheets of xiaomi on Bloomberg. What is the relation of assets to: cash and cash equivalents, inventory, account receivable? What is the relation of Total Liabilities and Shareholder Equity to: long term debt, equity, retainedearning? Comment on the company's capital structure choices. Compare the balance sheetsfrom last 3 years and make at least 5 observations.
3. What is the cash flow from assets for the most recent year of xiaomi? Describe your company's cashflows for the most recent year.
4. Describe the xiaomi's capital structure as well as its credit ratings. Explore and describe the company's most recent bond issue if available.
5. Ratio Analysis: Evaluate the xiaomi by using ratio analysis. Make sure to include liquidity, financial leverage, asset management, profitability and market value ratios. Compare your company to industry peers (justify the choice of peer companies). Make at least 5 observations by using Bloomberg
6. Evaluate the cash cycle of the xiaomi (CCC) and compare it to that of the industry leader or to the industry average.
7. Using the information from the most recent annual financial statements, what is the internal growth rate for xiaomi? What is the sustainable growth rate of xiaomi? What do these numbers mean xiaomi?
8. How much cash did xiaomi return to its stockholders over the last 3 years? How does this xiaomi's dividend policy compare to those of its peer group?
9. Calculate the price of the stock using the dividend growth model and the CAPM of xiaomi by using Bloomberg.
10. Given the price you calculated, and the financial ratio analysis make an investment recommendation (decision) on the stock of xiaomi (buy, sell or hold).
11. (Bonus) Identify key drivers of value for xiaomi and recommend two changes for increasing shareholder value.