The company assigned is Kohl's
First thing you want to do is to download the company's financial statements from the company's website. (When submitting the final report, you must include these financial statements as a part of the report.) Go to the company's website. If unsure what the link is, go to Yahoo/Finance, enter the company's symbol in Quote Lookup, then go to company's profile, and you will find the company's link there. Once logged onto the company's website, look for Investor's Relations. In Investor's screen, look for Annual Reports or 10K (the equivalent of what the company has to file with the SEC annually). Open the link to the most recent annual report or 10K and look up the table of contents. You should find the page numbers where the financial statements are located. Once you download the financial statements, you need to calculate 2 years' worth of ratios. Every annual report and 10K provides 3 years' income statements and cash flow statements and 2 years' balance sheet, so we can easily come up with 2 years' ratios. Remember that financial analysis is about identifying the trend. We need a minimum of 2 years' data to do this. The following ratios (some we have already covered; some we will see in future chapters) should be calculated: Working capital Current ratio Gross profit margin Net profit margin Inventory turnover (ch 7) Days' sales in inventory (ch 7) AR turnover (ch 9) Days' sales in AR (ch 9) Debt ratio. The formulas to a couple of the ratios require that we use the "average." E.g., inventory turnover and AR turnover required that we use "average" inventory and "average" AR as the denominator. Since we only get 2 years' balance sheet in an annual report, using the average will not allow us to calculate 2 sets of these ratios. To accommodate that, skip the average, and just use that particular year's inventory and AR. In other words, for inventory turnover, use the formula of CGS/inventory (that year's only); for AR turnover, use the formula of Net Sales/AR (that year's only). This way we can calculate these ratios for two years. The final paper should contain 1 page of these ratios for 2 years. First thing you want to do is to download the company's financial statements from the company's website. (When submitting the final report, you must include these financial statements as a part of the report.) Go to the company's website. If unsure what the link is, go to Yahoo/Finance, enter the company's symbol in Quote Lookup, then go to company's profile, and you will find the company's link there. Once logged onto the company's website, look for Investor's Relations. In Investor's screen, look for Annual Reports or 10K (the equivalent of what the company has to file with the SEC annually). Open the link to the most recent annual report or 10K and look up the table of contents. You should find the page numbers where the financial statements are located. Once you download the financial statements, you need to calculate 2 years' worth of ratios. Every annual report and 10K provides 3 years' income statements and cash flow statements and 2 years' balance sheet, so we can easily come up with 2 years' ratios. Remember that financial analysis is about identifying the trend. We need a minimum of 2 years' data to do this. The following ratios (some we have already covered; some we will see in future chapters) should be calculated: Working capital Current ratio Gross profit margin Net profit margin Inventory turnover (ch 7) Days' sales in inventory (ch 7) AR turnover (ch 9) Days' sales in AR (ch 9) Debt ratio. The formulas to a couple of the ratios require that we use the "average." E.g., inventory turnover and AR turnover required that we use "average" inventory and "average" AR as the denominator. Since we only get 2 years' balance sheet in an annual report, using the average will not allow us to calculate 2 sets of these ratios. To accommodate that, skip the average, and just use that particular year's inventory and AR. In other words, for inventory turnover, use the formula of CGS/inventory (that year's only); for AR turnover, use the formula of Net Sales/AR (that year's only). This way we can calculate these ratios for two years. The final paper should contain 1 page of these ratios for 2 years
