Instructions for Chevron Corporation

• Continue in the same Excel workbook prepared in Module 2: Week 2, adding the following tabs:
  • The 5^th tab and 8^th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Income Statements. (Replace Competitor Company Name with the name of the competitor.)
    • Include the latest three years of income statements for your competitor based on SEC filings.
    • Ensure that the worksheet includes a header with:
      • Name of Company- Chevron Corporation
      • Financial Statement Name (Income Statements)
      • Financial Statement Dates
      • Denomination level ($s in millions or thousands, etc.)
  • The 6^th and 9^th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Balance Sheets. (Replace Competitor Company Name with the name of the competitor.)
    • Include the latest three years of balance sheets for your first competitor based on SEC (10-K) filings. (Note: Some 10-Ks only provided 2 years of balance sheet data. You may need to download the second most recent 10-K for your company in order to obtain 3 years of balance sheet data.)
    • Ensure that the worksheet includes a header with:
      • Company Name
      • Financial Statement Name
      • Financial Statement Dates
      • Denomination level ($s in millions or thousands, etc.)
  • The 7^th and 10^th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Cash Flows. (Replace Competitor Company Name with the name of the competitor.)
    • Include the latest three years based on SEC (10-K) filings.
    • Make sure that the Income Statement, Balance Sheet, and Cash Flows Statement tie in as follows:
      • Net Income from Income statement agrees with Net Income on the Statement of Cash Flows
      • Ending Cash Balance from Statement of Cash Flows agrees with Cash in the Balance Sheet
  • The 11^th tab in your Financial Statement Analysis Template must be labeled Historical and Competitor Ratios
  • • • The list of ratios to be included are as follows. They should be grouped under the headings, as shown:
        • Liquidity Ratios
          • Current Ratio
          • Quick Ratio
        • Leverage Ratios
          • Debt to Total Assets Ratio
          • Debt Equity Ratio
          • Long-Term Debt to Equity
          • Times Interest Earned Ratio
        • Activity Ratios
          • Inventory Turnover
          • Fixed Assets Turnover
          • Total Assets Turnover
          • Accounts Receivable Turnover
          • Average Collection Period
        • Profitability Ratios
          • Gross Profit Margin
          • Operating Profit Margin
          • Net Profit Margin
          • Return on Total Assets (ROA)
          • Return on Stockholders Equity (ROE)
          • Earnings Per Share (EPS)
          • Price Earnings Ratio
      • Calculate the ratios for your chosen company for the last three years, linking the ratio calculations back to the historical financial statement tabs (Tabs 2-4) using formulas.
      • Calculate the ratios for each of your companys competitors (most recent year only), linking the ratio calculations to the competitor financial statements shown in Tabs 5-10 using formulas.
      • Using the internet, locate the industry averages for the ratios listed above, and include them in the final column of the ratio tab. Include a footnote on the tab to identify the source of the industry averages.
    • Other instructions:
      • The Excel workbook should be professionally formatted. Professional formatting includes:
        • All numbers are formatted similarly. The use of decimals, commas for thousands, and other formatting is consistent.
        • Dollar signs are included in the first and last numbers of each column.
        • Subtotals and totals are preceded by a single underline. Totals are followed by a double underline.
        • Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.
      • All totals and subtotals in the competitor financial statements as well as the ratio calculations should be calculated using formulas.