The Financials
Ratio analysis is a quantitative method of gaining insight into a company’s liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity analysis (Links to an external site.).
https://www.investopedia.com/terms/r/ratioanalysis.asp#:~:text=Key%20Takeaways,the%20same%20industry%20or%20sector. (Links to an external site.)
Individual Project
You can easily find the financials for publicly traded corporations on sites such as Yahoo! Finance (http://finance.yahoo.com) or Google Finance (www.google.com/finance).
Lookup a known publicly traded corporation and find its financials: income statement, balance sheet, and cash flow. Identify the company and answer the following questions for the company you chose:
a. What types of trends do you notice for the last 10 years with detail?
b. Find news items or press releases that correspond with upturns or downturns in income and provide an overview?
c. Look at the income statement. https://scalefactor.com/ask-the-experts/how-to-calculate-total-revenue/ (Links to an external site.)
i. What is the total income for the most recent year the website, provide feedback?
Most recent quarter?
ii. What is the gross or net income for the most recent year the website provides, provide feedback?
Most recent quarter?
d. Look at the balance sheet.
i. What are the total assets for the most recent year provided, provide feedback?
Total liabilities?
e. Look at the cash flow.
i. For the most recent year provided, what is the net cash flow, provide feedback?
Is it positive or negative?
Include the financial statements such as the balance sheet and income statement used.
You must complete and also submit the five key ratios worksheet with the file link below for any credit.
LINK: Complete the five key ratios from the worksheet and calculate them using this file link.
(Approximate project time: 3.5 hours)
