Research Paper: 1. Intel company, run a financial statement analysis to determine whether you will invest in the company as a shareholder. 2. Run the analysis as of 9/30/2021 if Fiscal year ends on 9/30. If not, you may use Dec 31, 2020 and priror years. 3. Use at least 4 ratios (must include current ratio, debt-to-equity ratio, and price/earning ratio). 4. Use the Ratio Analysis Model on p.75 of the text book. 5. Page limitation - 2 pages. 6. Format - MS Word 7. Due by December 5, 2020.
A. The Ratio Analysis Model 1. Formulate the Question How profitable is Pancra Bread? 2. Gather the Information from the Financial Statements The profit margin is a measure of a company's profitability. To calculate the ratio, it is essential to know a company's: Net income: From the income statement Net sales or revenues: From the income statement 3. Calculate the Ratio Net Income Profit Margin = Net Sales or Revenues Panera Bread Partial Income Statement (in thousands of dollars) For the Year Ended December 30, 2014 Net income Revenues $ 179.293 $2.529.195 $ 179,293 Profit Margin- - 7.1% $2.529.195 4. Compare the Ratio with Other Ratios Ratios are of no use in a vacuum. It is necessary to compare them with prior years and with competitors. PROFIT MARGIN Panera Bread Chipotle December 30, December 31, December 31, December 31, 2014 2013 2014 2013 7.1% 8.2% 10.8% 10.2% 5. Interpret the Ratios A high profit margin indicates that the company is controlling its expenses. This is because revenues minus expenses equals net income; if the ratio of net income to revenue is high, the company is not only generating revenue but also minimizing expenses. Both companies' profit margins indicate that the companies are able to control their expenses while increasing their revenues. Panera Bread's profit margin decreased by 1.1% over the two-year period, while Chipotle's increased by 0.6%. A. The Ratio Analysis Model 1. Formulate the Question How profitable is Pancra Bread? 2. Gather the Information from the Financial Statements The profit margin is a measure of a company's profitability. To calculate the ratio, it is essential to know a company's: Net income: From the income statement Net sales or revenues: From the income statement 3. Calculate the Ratio Net Income Profit Margin = Net Sales or Revenues Panera Bread Partial Income Statement (in thousands of dollars) For the Year Ended December 30, 2014 Net income Revenues $ 179.293 $2.529.195 $ 179,293 Profit Margin- - 7.1% $2.529.195 4. Compare the Ratio with Other Ratios Ratios are of no use in a vacuum. It is necessary to compare them with prior years and with competitors. PROFIT MARGIN Panera Bread Chipotle December 30, December 31, December 31, December 31, 2014 2013 2014 2013 7.1% 8.2% 10.8% 10.2% 5. Interpret the Ratios A high profit margin indicates that the company is controlling its expenses. This is because revenues minus expenses equals net income; if the ratio of net income to revenue is high, the company is not only generating revenue but also minimizing expenses. Both companies' profit margins indicate that the companies are able to control their expenses while increasing their revenues. Panera Bread's profit margin decreased by 1.1% over the two-year period, while Chipotle's increased by 0.6%
