Part one: In class we have spoken about the company Calcbench.com as a platform that permits users to use XBRL technology to evaluate companies. Sign up for a free trial Calcbench account, pick a company, and use Calcbenchs database to download multiple years (4 or 5 would be good, longer is better) of quarterly financial data that you will use to create three individual scatterplots in relation to quarterly changes in your companys stock price. With Calcbench you can download your data into an Excel file to make for an easier analysis. The x-axis of your three scatterplots will be percent change in stock price from one quarter to the next, and the y-axis of your scatterplots will be quarterly changes of a financial metric of your choosing for a total of three individual scatterplots (e.g., stock price changes versus earnings changes, stock price changes versus current ratio changes, and stock price changes versus inventory turnover changes).

To create your scatterplots feel free to use Excel or Google Sheets, and simply copy your charts into the document that you submit online at Canvas for your assignment (screenshots or other). Your goal is to create scatterplots where there appears to be a strong relationship between your x-axis values and your y-axis values. You may need to experiment with a variety of financial metrics before you find relationships that look to be meaningful in fact, you may not be able to find any relationship that looks to be meaningful, but please try, and then discuss what you have learned.

Part two: Think about a KPI that you think might help an investor understand something meaningful about the company you have selected. To help you select a KPI, you may use the attached reading entitled 67 Key Performance Indicators. Please note that you are not required to calculate a KPI, only to state which KPI you think would help someone better understand a fundamental aspect of your firms performance.