Question
REQUIRED ELEMENTS Select a publicly traded company from the list below and acquire the company's most recent financial statements (either using their investor website or
REQUIRED ELEMENTS
Select a publicly traded company from the list below and acquire the company's most recent financial statements (either using their investor website or the SEC.gov website). Use those statements to analyze the company, by calculating ratios for the company's Current Year (CY) and the Prior Year (PY).When necessary, use Nasdaq or Yahoo Finance to determine the market price of the stock.Note: one of your ratios must be the P/E ratio.
An MS Excel Template has been provided for your use.You may use it if you choose but it is not required.(All the ratios are shown in the template but you only need to calculate the required number of ratios per the instructions.) Ratios given in excel sheet are: Gross MarginReturn on investment,Return on capital employed, Operating Margin, Overhead/sales, Working Capital or Current ratioAcid-test (quick ratio), Gearing Ratio,Interest cover or Times interest earned,Total Asset TurnoverAverage, Collection Period -Days Sales outstandingInventory, Turnover, Days Purchases outstanding, Dividends per share, Payout ratio, Dividend yield, Earnings per share (EPS)Price -earnings (P-E) ratio.
1.Ratio Calculations
a.Calculate 10 of the ratios, for the current (CY) and previous year (PY).Calculate at least one ratio from each category in your textbook for profitability liquidity, gearing, efficiency and shareholder return. Compare CY to PY ratios for the company.(Use Excel to calculate ratios and SHOW your WORK!)
b.Calculate at least one (1) ratio from each category for two of the company's competitors for the CY and PY.
List of companies to select from:Starbucks, Proctor and Gamble, Target, McDonalds, Home Depot, Microsoft, Walt Disney, Verizon, Apple, Inc., Johnson & Johnson, General Motors, PepsiCo.
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