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Objective: The objective of this assignment is to develop your ability to read, understand, and analyze financial statements of a publicly traded company. You will

Objective: The objective of this assignment is to develop your ability to read, understand, and analyze financial statements of a publicly traded company. You will learn to interpret the financial health and performance of a company by examining its income statement, balance sheet, and cash flow statement.

 Instructions: 1. Select a Company: o Choose a publicly traded company from a major stock exchange (e.g., NYSE, NASDAQ). o Ensure the company has comprehensive financial statements available for the most recent fiscal year. 2. Obtain Financial Statements: o Download the company’s latest annual report (Form 10-K) from its official website or the SEC’s EDGAR database. o Focus on the Income Statement, Balance Sheet, and Cash Flow Statement. 3. Analysis Sections: A. Income Statement Analysis: o Identify and explain the major components: Revenue, Cost of Goods Sold (COGS), Gross Profit, Operating Expenses, Operating Income, Net Income. o Calculate the following ratios and provide a brief analysis for each:  Gross Profit Margin  Operating Profit Margin  Net Profit Margin B. Balance Sheet Analysis: o Identify and explain the major components: Assets (Current and NonCurrent), Liabilities (Current and Non-Current), Shareholders' Equity. o Calculate the following ratios and provide a brief analysis for each:  Current Ratio  Quick Ratio  Debt to Equity Ratio C. Cash Flow Statement Analysis: o Identify and explain the major components: Cash Flows from Operating Activities, Investing Activities, and Financing Activities. o Discuss the net change in cash and the company’s cash position at the end of the period. 4. Conclusion: o Summarize the company’s overall financial health based on your analysis. o Highlight any areas of concern or aspects that appear particularly strong. Deliverables: • Report: A written report (approximately 1,000 words) summarizing your findings. The report should include: o An introduction to the company. o Detailed analysis of each financial statement section. o Calculations and interpretations of the financial ratios. o A final conclusion summarizing the company's financial health. • Appendix: Include the relevant sections of the financial statements and any calculations or additional information supporting your analysis. Submission Guidelines: • Format: Typed, double-spaced, Times New Roman, 12-point font, 1-inch margins. • File Format: PDF or Word document. • Submission: Submit via the course's online portal. Grading Criteria: • Understanding of Financial Statements (30%) • Accuracy of Ratio Calculations (20%) • Quality of Analysis and Interpretation (30%) • Clarity and Organization of Report (20%) Resources: • Company’s latest annual report (Form 10-K). • SEC EDGAR database: EDGAR • Financial news websites and analysis tools.

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