Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the company's 10-K report you chose in Week 1, please complete the following and post to the discussion board. Your answer should be at

Using the company's 10-K report you chose in Week 1, please complete the following and post to the discussion board. Your answer should be at least 300 words in length and you should submit the Excel worksheet that shows your calculations along with the income statement and balance sheet information you are using to make these calculations. Submit this assignment through the direct link, located within the Week 5 Assignments Folder.

Required: Use Excel to: https://www.sec.gov/Archives/edgar/data/37996/000003799616000092/f1231201510-k.htm

1. Calculate the ratios listed below for the current and past year of the company you are researching. Make sure you are using the financial data from the annual reports to calculate your ratios, so that anyone can track your calculations.

2. Review the ratios you calculated for your company for the current and past year, and discuss the operating performance, liquidity, and financial strength of the company.

Return on Investment

EBIT/Capital Employed

Page 214 using return on capital employed. Page 216 text discusses how this ratio is calculated many ways but need to be consistent

Return on Total Assets

EBIT/Total Assets (p. 215)

Return on Equity

Net Income/Equity (p. 236)

Operating Profit Margin

EBIT/Revenue (p. 218)

Asset Turnover

Revenue/Net Operating Assets (p. 220)

Working Capital Turnover

Revenue/Working Capital (p. 225)

Current Ratio

Current Assets/Current Liabilities (p. 230)

Earnings Per Share on Common Stock

Net Income/# of Shares Outstanding (p. 236)

Price-Earnings Ratio

Share Price/EPS (p. 236)

Dividends Yield https://www.sec.gov/Archives/edgar/data/37996/000003799616000092/f1231201510-k.htm

Annual Dividend/Share Price (p. 239)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Management

Authors: Geert Bekaert, Robert Hodrick

3rd edition

1107111820, 110711182X, 978-1107111820

More Books

Students also viewed these Finance questions