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Obtain financial statements income statements and balance sheets for A.O. Smith Corp (ticker: AOS) for the most recent four years, at least. You can obtain
Obtain financial statements income statements and balance sheets for A.O. Smith Corp (ticker: AOS) for the most recent four years, at least. You can obtain that information from the Securities and Exchange Commission (SEC) Edgar database of corporate filings. Use annual data from annual reports (10-K). 2022,2021,2020,2019
Part 1: Calculate the primary financial ratios of A.O. Smith Corp in each of the prior four years, including:
1) Profitability ratios (profitability ratio, profit margin, net margin, return on assets, return on equity)
2) Efficiency ratios, including working capital ratios (Days of Receivables Outstanding, Days of Sales in Inventories, Days of Payables Outstanding, total asset turnover, fixed asset turnover)
3) Short-term solvency ratios (current ratio, quick ratio)
4) Long-term solvency ratios (debt-to-equity, financial leverage, debt-to-total assets, interest coverage ratio) Identify THREE most significant changes in those ratios over the prior four years.
Part 2: Analyze most recent financial performance of A.O. Smith answering the following questions:
1) What happened to Return on Equity for A.O. Smith during the period? What happened to components of Return on Equity, such as profitability ratio, total asset turnover, total book equity to total book assets?
2) Identify THREE PRIMARY uses of funds (which accounts on the balance sheet did A.O. Smith invest in) during the last four years, and THREE PRIMARY sources of funds (which accounts on the balance sheet did these funds come from)?
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