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On your first job assignment as an equity analyst, you need to analyze one of three companies: Chipotle Mexican Grill (CMG), Nvidia (NVDA) or Facebook

On your first job assignment as an equity analyst, you need to analyze one of three companies: Chipotle Mexican Grill (CMG), Nvidia (NVDA) or Facebook (FB). You may do this analysis in Microsoft Excel (preferred), Google Sheets or use Microsoft Word (not recommended). You must show your company data with web citation, and clearly show all ratio inputs and output values. (Note: If using Microsoft excel, please use cell references for computation of ratios.)

Please complete the following tasks:

  1. Source the past 3 years financial statements for your company.

Download (or copy/paste) the annual income statements, balance sheets, and cash flow statements for the last 3 fiscal years (2017, 2018, 2019) from your company from either: SEC Website, Annual reports, Google Finance or other site. Enter the company's stock symbol and then go to "financials". Copy and paste the financial statements into Excel or Word. It is best to put the individual financial statements on separate sheets (tabs) within the workbook or google sheet.

  1. For each of the 3 years, compute the following ratios for each firm:

Current ratio

Inventory turnover

Operating margin

Net profit margin

  1. Obtain industry averages for your respective firm from Zacks, y-charts, google finance, or other site. Cite your source by copying the URL to your document. Compare the firm's 2019 ratio to the available industry ratios for the most recent year (2019 or 2020 is ok). Comment on your firm's ratio's compared to its industry.

  1. Analyze the performance of your firm (ratios) versus its industry (Peer analysis - against benchmark) and comment on any trends (Trend analysis - over time) in each individual firm's performance. Comment on both the peer analysis and the trend analysis. A couple sentence is adequate.

  1. Identify any/all strengths or weakness, including qualitative factors, which you find in your firm. Answer the question: Would you invest in this firm? A couple sentences is adequate.

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