Step $1$: Pick a company

Identify a firm that is publicly traded $($on one of US exchanges$)$ and operates in an industry in

which you would like to work or to open up your own business. The firm must have positive Net

Income for the past $3$ years. $($You can look this up in Yahoo Finance$/$your firm's name$/$financials$)$

Step $2$: Download and compute accounting$/$financial data

Download financial data into a $($neatly arranged and labeled$)$ spreadsheet, following the guidelines

provided in the FSIT lab session with Prof. Ionici. Download three years of data, ending with the

last fiscal year for which the firm has data available. Make sure you download all appropriate

data in order to complete the following tasks:

a$.$ Calculate the following variables for three consecutive years: Current ratio, total debt ratio,

debt to equity ratio, asset turnover ratio, profit margin, ROA, ROE, price to earnings,

market to book, annual stock return, and amount of dividends. Refer to your notes from

your FSIT class for information on how to get that data. You may add additional ratios to

your analysis if you would like to$,$ but it is not mandatory.

b$.$ For each of the ratios and variables referenced above, find the average value for the

industry of your company. If you can't find it$,$ use as a benchmark a firm that is most similar

to the one you picked.

c$.$ If you use any additional data sources, be sure to document them $($e$.$g$.,$ Yahoo finance;

the company website; etc.$)$

Step $3$: Brief Financial Analysis

Using the information above, analyze the liquidity, financial leverage $($or bankruptcy risk$),$

profitability, operating efficiency, and market value of your company.

a$)$ How does your company perform relative to its industry? Do not forget to use the DuPont

equation when you compare your firm's ROE relative to its industry.

b$)$ Are market value ratios helpful for predicting future stock returns? Can we use them for

making investment decisions? Explain.$\backslash$table$[[,\{$

$\backslash$table$[[2021,2022]]\},2023,],[,],[$Current Ratio,Company A$,,,],[$Industry Average,,,$],[,,,,],[$Total Debt Ratio,Company A$,,,],[$Industry Average,,,$],[,,,,],[$Debt$-$to$-$Equity,Company A$,,,],[$Industry Average,,,$],[,,,,],[$Asset Turnover,Company A$,,,],[$Industry Average,,,$],[,,,,],[$Profit Margin,Company A$,,,],[$Industry Average,,,$],[,,,,],[$ROA$,$Company A$,,,],[$Industry Average,,,$],[,,,,],[$ROE$,$Company A$,,,],[$Industry Average,,,$],[,,,,],[$Price$-$to$-$Earnings,Company A$,,,],[$Industry Average,,,$]]\backslash$table$[[$Market$-$to$-$Book,Company A$,,,],[$Industry Average,,,$]]$

$\backslash$table$[[$Stock Return,Company A$,,,],[$Industry Average,,,$]]$

$\backslash$table$[[$Dividends$,$Company A$,,,],[$Industry Average,,,$]]$

$2$