Ratios In an Excel spreadsheet compute all of the ratios that are relevant to your company for the most recent year. Feel free to add any additional ratios that you think might be important to understand your company (for instance, some companies might discuss certain ratios in the management discussion section of the annual report). Also, in the Excel spreadsheet compute common size statements for the balance sheet (2 years of data) and income statement (3 years of data). Analysis Required In a word document respond to the following questions regarding your company: (1) When does the company recognize its revenue? There may be multiple revenue recognition methods for your company so comment on all of them. (2) What accounting methods are used by your company for the following items: a. Inventory (if any) b. Plant, property and equipment c. Leasing (if any) (3) What has been the company?s experience over the most recent three year period with regard to profit generation? Here you should also discuss relevant ratios regarding profitability such as ROE and ROA. (4) How does the company finance its operations, i.e. how much debt versus equity is used in the company? Have there been any major changes in the way that the company finances the company in the last two years? (5) Discuss the short-term and long-term liquidity situation for your company including the appropriate ratios. (6) Discuss the cash flow situation of the company over the last three years. Incorporate into your discussion an analysis of how they generate cash from operations, what their major uses of cash are outside of operations and how they pay for these uses. (7) If you were contemplating investing in the stock of this company what might be the major pros and cons that you see strictly from looking at their financial situation. (8) Discuss what analysts think about your company and its future using an online service as Yahoo Finance.
Paper#4332 | Written in 18-Jul-2015Price : $25